Update: Focus Solutions profits jump 27%

10th Jun 2009 12:33

The credit crunch has ravaged the UK banking sector, but it has also resulted in a stricter regulatory environment, which is good news for software company Focus Solutions.Focus, which provides software that helps financial advisors select the right products for their customers, revealed a 27% hike in annual pre-tax profit following increased demand for its services. Pre-tax profit rose to £1.78m for the year ended 31 March 2009 from £1.4m the year earlier on sales revenue of £9.60m compared with £8.60m before. EBITDA before exceptional costs rose 26% to £2.01m. Chief executive Richard Stevenson explained to ShareCast that the company was benefiting from demand for financial products shifting away from traditional providers whose reputations have been tarnished by the financial crisis to businesses such as the supermarket Tesco. As the new providers start selling these products, they need to use software such as Focus's Focus 360 to ensure they comply with regulations, he explained.HSBC has been a main customer for Focus Solutions, with the bank having already signed contracts worth £5.7m with the company. Phase two of the firm's work with HSBC will be completed in July or August and Focus is hoping to agree on a third phase after this.While Focus has benefited from the stricter regulatory environment that has emerged from the credit crunch, the depressed state of the financial sector has also created uncertainty, making predictions for the future difficult, the company said.Focus, which is currently concentrated on UK and Irish markets, also said it is exploring overseas opportunities. Stevenson told ShareCast it was mainly looking at the Nordic region and Central and Eastern Europe.The firm said it expects the Financial Services Authority's Retail Distribution Review, a consultation aimed at stamping out poor practices in the retail investment market, to lift demands for products such as those provided by Focus.