A still uncertain global economic backdrop, along with industry consolidation, dragged on financial trading software group Fidessa (FDSA). A 5 per cent year-on-year decline in European sales meant flat full-year revenue and only a small earnings bump. But sales in the Americas did rise 6 per cent, while turnover growth in Asia - apparently slender at 1 per cent - would have been in double digits but for Japan's economic woes and currency weakness.
Fidessa also broadened its customer base and generated 57 per cent of total revenues from outside of Europe, while recurring revenues rose 2 per cent to £239m - representing 85 per cent of total sales. Another bright spot was derivatives platform sales, which more than doubled year on year and now account for around 4 per cent of recurring revenues. Analysts think sales there could double again in each of the next two years. But management sounded a cautious note. "The market has been through a severe downturn and we expect to come out of it gradually," said chief executive Chris Aspinwall. But he did add that Fidessa had seen "improved conditions across all our main markets".
Broker Jefferies expects adjusted pre-tax profit of £44.2m for 2014, giving EPS of 87.3p (from £41.8m and 83.5p in 2013).
| FIDESSA (FDSA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,304p | MARKET VALUE: | £871m | |
| TOUCH: | 2,304-2,325p | 12-MONTH HIGH: | 2,541p | LOW: 1,670p |
| DIVIDEND YIELD: | 1.6%† | PE RATIO: | 27 | |
| NET ASSET VALUE: | 393p* | NET CASH: | £73m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 239 | 31.0 | 59.8 | 30.0† |
| 2010 | 262 | 39.7 | 77.8 | 33.0† |
| 2011 | 278 | 42.5 | 82.2 | 36.5† |
| 2012 | 279 | 42.0 | 82.5 | 37.0† |
| 2013 | 279 | 43.1 | 85.5 | 37.0† |
| % change | - | +3 | +4 | - |
Ex-div: 14 May Payment: 13 Jun *Includes intangible assets of £89.3m, or 236p a share †Excludes special dividends: 45p in 2010, 2011, 2012 and 2013 | ||||
