Faced with shaky world markets and zealous regulators, banks and insurers have raced to boost efficiency and comply with new rules. Those trends fuelled a 4 per cent rise in constant currency sales at investment software and compliance provider Fidessa (FDSA) in 2015. Rising staff costs kept adjusted operating profit flat at £39.5m.
Fidessa's budding derivatives business posted a 60 per cent rise in sales to £36m as RBS, Barclays and others rolled out its platform. Coupled with strong demand from regional brokers in Asia Pacific, that drove sell-side revenue up 4 per cent. But budgetary pressures and weak sentiment among fund managers and insurers fuelled a 3 per cent decline in buy-side sales.
In light of recent industry consolidation, restructuring and closures, Fidessa's directors expect a similar rate of constant currency sales growth in 2016. But they don't expect investments - which could include a foray into fixed income - to endanger future special dividend payouts. Broker Panmure Gordon expects EPS of 83.7p, up from 78p in 2015.
| FIDESSA (FDSA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,258p | MARKET VALUE: | £865m | |
| TOUCH: | 2,256-2,260p | 12-MONTH HIGH: | 2,403p | LOW: 1,729p |
| DIVIDEND YIELD: | 2% | PE RATIO: | 29 | |
| NET ASSET VALUE: | 401p* | NET CASH: | £78.3m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 278 | 42.5 | 82.2 | 36.5† |
| 2012 | 279 | 42.0 | 82.5 | 37.0† |
| 2013 | 279 | 43.1 | 85.5 | 37.0† |
| 2014 | 275 | 39.1 | 77.1 | 38.1† |
| 2015 | 295 | 39.1 | 77.6 | 38.5† |
| % change | +7 | - | +1 | - |
Ex-div: 12 May Payment: 10 Jun *Includes intangible assets of £91.3m, or 238p a share †Excludes special dividend of 45p a share | ||||
