Celebrate our 150th anniversary with fantastic savings on a joint magazine and IC Advantage subscription.
Continued growth in software as a service (SaaS) revenues have helped exchange-traded derivatives software provider Ffastfill turn profitable in the first half of its financial year. Chief executive Hamish Purdey says that key decision-making in the financial services sector is returning, and this coupled with regulatory drivers leaves Ffastfill with an "improved outlook".
Advertising
Ffastfill's focus on delivering its software via its SaaS model - which typically generates recurring revenues - has helped maintain growth. SaaS revenues swelled 27 per cent to £5.1m in the period, and now account for 73 per cent of group turnover, up from 59 per cent a year ago. This has more than compensated for the anticipated decline in lower margin third party licence sales.
The first stage of Ffastfill 's Asian expansion has now been completed. Mr Purdey says the Asian presence has helped win new clients and highlights a recent global contract win with investment bank Nomura in the period. The continued contract win momentum has helped drive up the 12 -month order book to £13.6m, with SaaS orders, within this, up 17 per cent to £10.5m.
Analysts at Canaccord Adams are expecting full-year pre-tax profits of £1.4m and EPS of 0.36p (loss of 0.4p in 2009), rising to £2.5m and 0.62p, respectively, in 2011.
FFASTFILL (FFA) |
||||
|---|---|---|---|---|
| ORD PRICE: | 7.75p | MARKET VALUE: | £30.7m | |
| TOUCH: | 7.5-8p | 12-MONTH HIGH: | 8p | LOW:4.5p |
| DIVIDEND YIELD: | nil | PE RATIO: | 52 | |
| NET ASSET VALUE: | 3p* | NET CASH: | £2.7m | |
| Half-year to 30 Sep |
Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 6.83 | -0.52 | -0.14 | nil |
| 2009 | 7.04 | 0.46 | 0.12 | nil |
| % change | +3 | - | - | - |
*Includes intangible assets of £11.6m, or 2.9p a share |
||||
Guide to the terms used in IC results tables.
More analysis of company results
Analysts estimate that around 93 per cent of total sales are now recurring and, supported by the growing pipeline, Ffastfill looks well placed to grow profits strongly. Trading on a forward PE ratio of 12 for the 12 months to March 2011, the shares continue to rate good value.
Last IC view: Good value, 5.5p, 28 May 2009
Free access to financial data, charts, portfolio tools and more - registration is quick, secure and free!
Profit from IC share tips; discover the benefits of IC Advantage and sign up for a free trial.
© The Financial Times Limited 2010. All rights reserved. "Investors Chronicle", "FT" and "Financial Times" are trademarks of The Financial Times Limited. No part of these web pages may be reproduced or transmitted to or stored in any other website or other form of electronic retrieval system, without prior permission in writing from the editor.
Warning: Do remember, particularly if you are new to stock market investment that the prices of shares and other investments can fall sharply. You may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. This site is aimed at UK residents only. To read more please see our Important Warning
v6.2.10.5 running on www.investorschronicle.co.uk
