UPDATE: Focus Solutions: Partnerships To Spur New Mkt Entry

9th Jun 2010 11:24

(Adds executive comment, detail) By Hannah Benjamin Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Financial services software company Focus Solutions Group PLC (FSG.LN) Wednesday said it plans to step up its push in to new markets this year by increasing tie-ups with partners that can re-sell its platform in new geographies. It follows its agreement earlier this year with IT solutions company Mastek Ltd. (523704.BY), which will see the latter re-sell Focus Solutions' focus:360 platform across North America, Europe and Asia Pacific. Focus: 360 is a tool for financial advisers that allows them to distribute and sell mortgages, life assurance products and protection. Focus Solutions hopes the strategy will broaden its client base to encompass smaller adviser firms and reduce dependency on certain blue-chip customers. "Our pipeline last year was mainly U.K.-centric, but this year we're entering markets like North America, India and Asia Pacific and there's a big opportunity in Hong Kong and China," Chief Executive Richard Stevenson told Dow Jones Newswires Wednesday. Focus Solutions' fiscal 2010, ended March 31, pretax profit rose 15% to GBP2 million from GBP1.8 million a year earlier. Operating profit climbed to GBP2.3 million from GBP1.7 million a year earlier, offsetting a rise in costs. Revenue ticked up to GBP9.9 million from GBP9.6 million. The firm said the solid revenue performance was driven by increased licence sales of its focus:360 software. FinnCap analyst Paul Cornelius Wednesday initiated coverage on Focus Solutions and said the group's fiscal 2010 result demonstrates the robustness of the business model, given that the firm was able to grow earnings and sales despite challenging markets for software in general and financial software in particular. He said Focus Solutions' revenue model will continue to transform in to one based on higher-margin, recurring licence revenue, with a proportion delivered through incremental transactional revenue on a pay as you use basis. "Whilst this is not expected to be material for fiscal 2011, the effects on fiscal 2012 results could be substantial," he told clients. Focus Solutions said it has entered fiscal 2011 with its strongest-ever sales pipeline and expects deals to close in a more regular pattern this year. It said it has recently seen strong improvements in its key markets and is also keen to increase its presence in the direct to consumer market, whereby clients target the mass market with simple financial products. "Many organizations are now looking to go direct to the consumer rather than going through advisers and our platform provides a direct to consumer proposition," Stevenson said. -By Hannah Benjamin, Dow Jones Newswires; 44-20-7842-9298; [email protected] (END) Dow Jones Newswires June 09, 2010 06:24 ET (10:24 GMT)