15th Feb 2016 11:09
LONDON (Alliance News) - Fidessa Group PLC on Monday dismissed the notion that planned investments will restrict its ability to pay special dividends to shareholders, as the financial markets software firm posted full-year earnings slightly ahead of market expectations.
The FTSE 250 company has been investing in widening the range of asset classes it supports beyond equities, expanding its regional coverage, and building out of its infrastructure. However, Fidessa said Monday it hasn't yet to decide whether or not to move into the fixed income asset class, a potential move flagged in October last year.
Fidessa has been looking at the rates segment of the fixed income market, with research continuing into the idea, the company said. Although there has been uncertainty from a delay to implementation of MiFID II, a package of securities reforms in the EU, Fidessa said the European Commission's proposals to push back adoption of the rules by a year to January 2018 allows for "additional flexibility" in its approach.
"We do not believe that our current investment programme, including any potential investment in a new fixed income platform, is likely to have a material impact on our ability to pay further special dividends in the future," Chief Executive Chris Aspinwall said.
The guidance came as Fidessa reported flat pretax profit in 2015, at GBP39.1 million, as revenue rose by 7.4% to GBP295.5 million and expenses before accounting for the effects of amortisation and acquired intangible assets increased by 8.7% to GBP256.4 million. Operating margins were weakened by the group's investment pipeline, Fidessa said.
Fidessa lifted its ordinary dividend for the year to 38.5 pence from 38.1p, and maintained a special payment of 45.0p.
Shares in Fidessa were up 7.2% at 1,898.00 pence on Monday morning.
By Samuel Agini; [email protected]; @samuelagini
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