Fidessa group plc Interim Management Statement
Fidessa group plc (LSE: FDSA), provider of high-performance trading, investment management and information solutions for the world's financial community, is releasing its interim management statement for the period from 1st July 2012 to date.
The challenges in the financial markets have gone on longer than most observers were expecting with third quarter equity market volumes dropping further. This has resulted in Fidessa's customers becoming yet more cost constrained and it seems unlikely that there will be significant improvement in the short-term.
Fidessa will continue to develop opportunities, execute its growth strategy and push further into the multi-asset arena, but the on-going pressure within the markets means that full year 2012 revenue is likely to be flat on that delivered in 2011.
Within the derivatives markets, Fidessa has continued to develop opportunities and expects to announce further derivative deals in the fourth quarter. As highlighted in the interim results announcement in July, in order to address these derivative opportunities Fidessa is increasing its development spend,
both in terms of actual product development and also in terms of investment in the infrastructure and expertise required to support it. As a result of this investment and the on-going market conditions, Fidessa believes that margin is likely to be slightly below that seen in recent years.
In the short-term, the impact of continued adverse conditions in the equity markets is likely to offset the strong growth Fidessa is achieving from its solutions to the derivatives markets. Looking further ahead, Fidessa believes that stability and opportunity will return to the markets and that reduced headwinds, coupled with further openings as its multi-asset initiative gains momentum, will enable it to return to growth levels closer to those seen in the past. Fidessa will maintain its strategy of investment in the business to make sure that it brings the right solutions and services to its customers across all the regions in which it operates.
Fidessa continues to have a strong balance sheet with strong reserves, no debt,
good cash generation and substantial levels of recurring revenue.
