20th Oct 2008 07:00
Fidessa group plc Interim Management Statement
20 October 2008
Fidessa group plc , a world leading provider of multi-asset trading and investment management solutions is releasing its interim management statement for the period from 1 July 2008 to date.
We continue to make good progress across all regions and trade in line with management's expectations. We are seeing good demand for our product set and this has continued to deliver strong revenue growth with stable consultancy revenue. The brief slowing of the sales pipeline in Fidessa LatentZero, noted in the interim results announcement, has passed with recent orders being within expectations. However, the earlier slowdown has impacted the revenue generated from this area of the business, although the small shortfall has been fully offset by the revenue generated elsewhere in the group.
To date, we have seen little change in buying cycles as a result of the turbulence in the global financial markets. However, the current market conditions are exceptional and we do not believe we can be immune to any impact. We expect to see increased consolidation within our customer base as well as further pressure on expenditure at a number of our customers. Therefore, as a result, there is some reduction in our forward visibility for 2009.
The collapse of Lehman Brothers, which was a top 10 customer, resulted in a small debtor exposure of up to ‚£0.6 million with an additional risk to 2008 revenue of up to ‚£1.3 million. Discussions are ongoing with the parties concerned to reduce this exposure and risk although it is too early to know how great this reduction may be. We expect any under recovery of the debtor and revenue to have a small effect on the operating margin in the current year.
Commenting on Fidessa's performance over the period, Chris Aspinwall said: "We are currently operating through unprecedented market conditions, which are inevitably having an impact on forward visibility. However, we are pleased to report that, at the present time, demand for our products and services remains strong across the regions and we will continue to monitor the situation carefully. We believe the underlying strength of our business, with high levels of recurring revenue, substantial cash reserves, no debt and strong cash generation, leaves us very well positioned to meet the challenges resulting from the current conditions in the financial markets."
Enquiries:
Chris Aspinwall, Chief Executive Edward Bridges/Hazel Stevenson
Andy Malpass, Finance Director Financial Dynamics
www.fidessa.com Tel: 020 7831 3113 Tel: 01483 206300 Fax: 020 7831 6341 Fax: 01483 206301
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