Fidessa beats profit forecast but warns of slowdown ahead
BRITISH trading software firm Fidessa yesterday announced that its pre-tax profit had risen to £43.2m in 2011, up from £40m a year earlier. The results beat analysts’ predictions, despite the tough trading conditions caused by a wave of insolvencies and consolidation in the sector.
Revenue for last year was up six per cent at £278.3m but the firm warned that growth levels will be slower in 2012 as it continues to invest in development and struggles with the loss of smaller clients.
Fidessa suffered in its traditional Western markets, typified by the collapse of MF Global, which was responsible for 1.3 per cent of Fidessa’s global revenue.
However such declines were offset by strong demand for its products in the Americas and Asia.
The Woking-based company is the dominant provider of trading software to the financial industry, with $10 trillion worth of transactions using its network each year. The firm’s flagship sell-side suite is used by 85 per cent of tier one global equity brokers.
Fidessa shares, which had gained 12 per cent from the start of the year, closed down 4.8 per cent.