Investors in Fidessa (FDSA) may be hoping the financial software company's half-year results signal a return to its historically stellar growth rate. But given Fidessa's own forecast of modest growth this year - reflecting belt-tightening and consolidation among banks, brokers and asset managers as well as exposure to sluggish Europe - they may have to temper their expectations.
Panmure Gordon believes investors may be in denial as "there is no cyclical return to the good old days". It has pencilled in revenue growth of 1.6 per cent to £284m, but even that may be "a stretch" given recent currency movements. The broker forecasts pre-tax profits and EPS of £43.8m and 86.2p respectively.
However, Fidessa could benefit from the "somewhat uneven" recovery in its end-markets that it reported in April. And it's likely to achieve further gains in its fledgling derivatives business, which doubled sales last year to contribute 5 per cent of total revenue.
