Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Fidessa Profit Declines as Stagnant Markets Discourage Investors

July 29 (Bloomberg) -- Fidessa Group Plc, the U.K. developer of financial trading software, said first-half profit declined as an markets remained stagnant and new regulatory frameworks took longer than expected to be implemented.

Operating profit fell 5 percent to 20.8 million pounds ($31.9 million) in the six months through June while sales declined 1 percent, the Woking, England-based company said today in a statement. An improvement in financial market conditions hasn’t been “sufficiently strong or sustained” for investors to make “decisions with confidence”, it said.

Fidessa’s shares fell as much as 8.2 percent, the biggest intraday decline since April, and were 5.1 percent lower at 1,964 pence by 2:36 p.m. in London trading.

Fidessa supplies technology to 775 brokerages and 3,600 mutual and pension funds accounting for about $1 trillion in monthly trading activity, the company said. Lower consultancy revenue and a slow introduction of new regulatory and compliance frameworks such as the Dodd-Frank Act mean it expects little improvement in the second half of the year, although its longer-term outlook is more optimistic.

“The headwind that we have been seeing from closures and consolidations in the industry has reduced during the first half and we have a strong pipeline giving an indication that improving conditions may be starting to filter through,” Chief Executive Officer Chris Aspinwall said in the statement.

Expansion in Fidessa’s derivatives and service-based platforms were “developing good momentum” and new contract wins in the U.S. and Asia, including with one large American bank, reflected underlying progress,’’ Aspinwall said in a telephone interview. The Americas division grew by 6 percent to contribute 40 percent of revenue, while Europe contracted 8 percent and generated 43 percent of sales, the company said.

To contact the reporter on this story: Alex Pashley in London at apashley@bloomberg.net

To contact the editor responsible for this story:

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.