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Trading statements

Fidessa sees significant opportunities for further growth

27 October 2016 09:32

Fidessa expects 2016 constant currency growth will be around the levels seen in the first half, with an expectation of further headline gains if sterling remains at its current level.

An interim statement says: "Whilst Fidessa continues to see structural and regulatory drivers within the market, there is clearly a degree of uncertainty as a result of the Brexit vote.

"Although it remains too early to say what the wider implications of Brexit will be and how this might affect customer activity, Fidessa is not currently expecting that there will be any impact on the changing regulatory environment.

"In particular, Fidessa expects that MiFID II will be introduced as planned across Europe and that, regardless of any Brexit negotiations, it will also be implemented in the UK."

Fidessa continues to believe that it is well positioned to benefit from opportunities that will arise as a result of these changes in regulation. Furthermore, with over 60% of its revenue derived from outside of Europe, Fidessa remains well positioned to benefit from any continued weakness in sterling, providing further support for its strong cash generation and dividend policy.

Overall, Fidessa expects that 2016 constant currency growth will be around the levels seen in the first half, with an expectation of further headline gains if sterling remains at its current level.

Looking ahead, the group says that although it is clear that the Brexit vote will continue to create some uncertainty for a period of time, Fidessa believes that it is entering a period where opportunity is returning to the market.

Fidessa expects to continue to make progress with its multi-asset initiative and will continue to investigate the possibility of extending its asset class coverage.

Fidessa believes that across all asset classes, the market is moving towards the increased use of service-based solutions and that few vendors have both the depth of applications and the scale of infrastructure needed to deliver these solutions.

Fidessa says it is committed to playing an increasingly important role in the markets as customers focus on efficiency, transparency, compliance and performance, and expects that this will provide it with significant opportunities for further growth.

Fidessa says it continues to have a strong balance sheet with strong reserves, no debt, strong cash generation and substantial levels of recurring revenue

At 9:32am: (LON:FDSA) Fidessa Group PLC share price was +118p at 2414p

Story provided by StockMarketWire.com

Related Company: FDSA

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