28th Oct 2013 09:14
LONDON (Alliance News) - Fidessa Group PLC Monday said it expects its performance in the second half of the year to be similar to first half performance, as the company continued to experience "international growth and developing momentum" during the third quarter.
In its interim management statement for the period between to date from July 1, the trading platform provider said the improvement in financial markets had not been marked enough for its customers to make investment decisions with confidence.
Fidessa said it has seen "some continuation of the attrition and price pressure experienced during the first half", because of the challenges facing its customers.
As a result, Fidessa said it couldn't yet tell if a turning point had been reached.
"Looking further ahead, Fidessa expects that it will see stability and opportunity returning to the markets and believes that it may already be starting to see both of these develop. This will reduce the headwinds Fidessa is currently experiencing and, coupled with further openings as momentum
continues developing in its multi-asset initiative, will enable it to return to growth levels closer to those that have been seen in the past," the company said in a statement.
Fidessa said the "reduced level of headwind seen during the first half from closures and consolidations in the industry has continued through the third quarter".
The company also said it has a strong pipeline, giving an indication that improving conditions may be starting to filter through.
"Fidessa continues to believe that a floor will be reached in the decline of equity markets which will allow its core end markets to return to a more stable state. This will enable the growth it is generating through sales of its derivatives platforms, service-based platforms and regional expansion, to flow through into overall revenue growth, rather than being masked by the decline in traditional equities," the company said.
Despite that expectation, Fidessa said it doesn't expect those sources of revenue growth to contribute to the current year, a judgement that it said had informed its guidance for the second half.
Fidessa shares were Monday morning quoted at 2,024.00 pence, up 0.3%.
By Samuel Agini; [email protected]; @samuelagini
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