Fidessa full year profit flat but revenue edges up

15th Feb 2016 07:38

(ShareCast News) - Fidessa confirmed its dividends as it posted flat pre-tax profit but a rise in revenue, as it continues with its investment programme.In its preliminary results for the year to the end of December, Fidessa reported flat pre-tax profit of £39.1m, although revenue rose 7% to £295.5m, beating consensus expectations of £290m.The software and services firm said the growth in revenue came despite volatile conditions in financial markets, adding that end markets continued to improve, with increasing opportunity for new services.The group saw strong cash generation, with a £78.3m cash balance after dividend payments of £31.7m.Fidessa raised its dividend for the year to 38.5p from 38.1p and proposed a special dividend of 45p, in line with the previous year.It is currently investing to extend the range of asset classes it supports, expand its regional coverage and build out its global infrastructure.Chief executive Chris Aspinwall said: "During 2015, while financial markets remained volatile, we saw a continued improvement in our end markets as they entered a new phase of the recovery, with structural and regulatory changes starting to have an impact. These improvements have resulted in new opportunities and high levels of new business activity, enabling us to deliver solid revenue growth in 2015 and building on that achieved in 2014."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."Shore Capital said the results were "just slightly better than in line"."Given the share price decline since the first half results, we think the shares are beginning to look attractive, especially with a consensus forecast 3.8% dividend yield for 2016 and 85% recurring revenue."Fidessa also said on Monday that Andy Malpass, who stepped down as chief financial officer back in October, has retired from the company and leaves with immediate effect.