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Fidessa group plc Interim Management StatementFidessa 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.
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PRE-CLOSE TRADING UPDATEFirstGroup plc ("the Group") reports the following update on trading for the six months to 30 September 2012 ("the period") ahead of its half-yearly results to be announced on 7 November 2012.Overall tradingDespite continued economic uncertainty, overall trading for the Group during the first half of the year is in line with our expectations. With a resolute focus on creating a stronger business for the future we have taken action to improve performance and deliver sustainable growth.First StudentFirst Student has made good progress in addressing performance and strengthening its operating model. Although there remains significant work to be done, the business is now set on the path to recovery. We achieved a retention rate of 90% and delivered a successful start up to the new school year. US Dollar revenues on a like-for-like basis are expected to be down by 3.8 % for the period and as previously stated, we expect the operating margin for the full year to exceed the 2010/11 performance.First TransitFirst Transit continues to deliver a steady trading performance in line with our expectations. US Dollar revenues are expected to increase by 3.2 % on a like-for-like basis. We continue to achieve strong contract retention rates of over 90% and progress a pipeline of new business opportunities.GreyhoundWe continue with the modernisation of Greyhound including the roll out of our popular Express service. During the period like-for-like revenue growth is expected to be 1.7% reflecting the impact of the sluggish economic environment and lower fuel prices on summer trading. We have however, mitigated this impact through the actions we have taken over recent years which has enabled us to leverage the positive effects of a more flexible operating model. Our Greyhound Express product continues to prove popular with customers and, having rolled out services to Texas and California during the summer, we are developing plans to extend to further new cities in the autumn.UK BusOur UK Bus division is expected to deliver like-for-like passenger revenue growth of 2.5% in the period. Challenging economic conditions continue to impact a number of our urban operations however, during the period our operations in the North of England and Scotland saw improved revenue growth whereas, in keeping with industry trends, we saw a reduction in concessionary volumes in our businesses in the South. We were delighted to successfully complete the smooth delivery of our contract to provide spectator transport to the London 2012 Games. While there remains considerable work to be done in our UK Bus division, we have seen some early positive signs in some of our markets.We have a clear direction and are executing a detailed plan to recover performance and equip the business to achieve increased revenue and patronage growth, including continuing to work through our programme of disposals. As previously stated, we expect UK Bus operating margin to be approximately 8% in the full year.UK RailOur UK Rail division achieved a further period of solid performance with like-for-like passenger revenue expected to increase by 8.1%. All of our rail franchises made a strong contribution to this performance and we remain focused on ensuring the quality of our existing operations while continuing to develop opportunities from the re-franchising programme. We are shortlisted for all three rail franchises currently out for tender.On 15 August, the Department for Transport (DfT) announced that we have been awarded the contract to operate the InterCity West Coast franchise. The incumbent operator Virgin Rail Ltd, a joint venture between Virgin Group and Stagecoach Group plc, is pursuing a legal challenge against the DfT in relation to the franchise award. We have every confidence in the DfT's process which is rigorous, detailed and fair and in which bids are thoroughly tested. Our focus is to ensure a smooth transition with continuity for staff and passengers alike and to deliver the many benefits and improvements we are offering without delay or disruption. We continue to prepare for a successful mobilisation on 9 December 2012.OutlookCommenting, Tim O'Toole, Chief Executive said:"I am pleased to report overall trading for the first half of the year is in line with our expectations. With a fundamentally strong and diverse portfolio of operations we are focused on driving a greater performance and delivering improved growth and returns. While there is significant work to do we are satisfied with the progress of the actions we have taken, though we remain mindful of the uncertain economic backdrop."We have leading positions in a sector that is a key enabler of economic growth and we are confident that the actions we are taking will strengthen the business for the future. Therefore, reflecting its longer term view, the Board remains committed to its current policy of dividend growth of 7.0% through to the end of the financial year 2012/13."
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