Following a first-half loss, derivatives software supplier Ffastfill returned to the black in the second half after delivering strong contract wins. That momentum has continued into the current year, too, and Ffastfill commenced the new period with a 47 per cent increase in its 12-month order book to £20.7m. Although a punchy share rating leaves that progress looking factored-in.
The group won 23 new contracts in the year with 19 customers, of which 10 were new clients. Moreover, these were won across front, middle and back office products and across all geographic regions. Ffastfill has also continued to drive its software as a service (SaaS) offering, and sales from this more predictable business soared 13 per cent year-on-year to £13.6m – representing 79 per cent of group sales. That proportion isn't expect to alter significantly going forward, although the SaaS order book has risen significantly to £13.9m.
Meanwhile, WTD Consulting, which was purchased in November, and Spread Intelligence, a bolt-on acquisition last August, have both been integrated into the group. These successes could pave the way for similar deals, with any such acquisitions likely to be focused on the SaaS offering.
Broker Canaccord Genuity expects cash profits for 2013 of £3.8m, giving EPS of 0.73p (2012: £1.9m/0.39p).
FFASTFILL (FFA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 14.5p | MARKET VALUE: | £68.4m | |
| TOUCH: | 14.3-14.8p | 12-MONTH HIGH: | 14.9p | LOW:9.8p |
| DIVIDEND YIELD: | nil | PE RATIO: | 104 | |
| NET ASSET VALUE: | 5p* | NET CASH: | £2.2m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 11.4 | -0.14 | 0.26 | nil |
| 2009 | 14.4 | -0.44 | -0.11 | nil |
| 2010 | 14.3 | 1.20 | 0.28 | nil |
| 2011 | 15.5 | 1.83 | 0.46 | nil |
| 2012 | 17.2 | 0.61 | 0.14 | nil |
| % change | +11 | -67 | -70 | - |
*Includes intangible assets of £19.8m or 4p per share | ||||
