Trading and risk management software provider Fidessa has rewarded shareholders with a 40p per share special dividend on top of a 25 per cent rise in the full-year payout on results ahead of City expectations. Underlying revenues rose 17 per cent and adjusted pre-tax profits surged from £27.6m to £36.2m driven by market share gains, geographic expansion and pricing power over rivals. In turn, recurring revenues rose almost a third and now represent 81 per cent of group revenues, up from 77 per cent 12 months ago. Reassuringly, consultancy revenues have also managed to hold firm, with sales inching up 5 per cent to £44.6m.
However, chief executive Chris Aspinwall cautions that such buoyant growth rates are not going to be sustained over the current financial year. This is due to tougher cost controls among its customers - particularly in buy side customers - and higher levels of consolidation and failures of businesses within its client base. In fact, 12 significant customers either ceased trading or consolidated during 2009.
Nevertheless, software analyst George O'Connor of broker Panmure Gordon remains upbeat and is expecting another strong year of growth, pencilling in 2010 revenues of £269m, adjusted pre-tax profits of £42.3m and EPS of 79.8p, a significant upgrade on his previous 65.8p estimate (£239m, £36.2m and 68.3p in 2009).
FIDESSA (FDSA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,319p | MARKET VALUE: | £472m | |
| TOUCH: | 1,314-1,324p | 12-MONTH HIGH: | 1,340p | LOW: 600p |
| DIVIDEND YIELD: | 1.5% | PE RATIO: | 34 | |
| NET ASSET VALUE: | 344p | NET CASH: | £45.5m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 74 | 11.3 | 31.6 | 10.3 |
| 2006 | 95 | 14.3 | 31.9 | 13.1 |
| 2007 | 135 | 17.1 | 34.4 | 18.0 |
| 2008 | 189 | 36.0 | 80.1 | 24.5 |
| 2009** | 239 | 31.0 | 59.8 | 30.0 |
| % change | +26 | -14 | -25 | +22 |
Ex-div: 3 Mar Payment: 29 Mar *Includes intangible assets of £78.2m, or 218p a share **Excludes special dividend of 40p a share payable with second interim dividend | ||||
