Highlights for the period ended 31st December 2014:
Return to underlying growth with increase of 3% on revenue and adjusted profit at constant currency.
Improving market conditions and outlook.
Multi-asset revenue nearly doubles as derivatives programme continues to deliver.
New derivatives signings continue along with a strong pipeline.
Growing international spread, with 58% of total revenue now accounted for outside of Europe.
Recurring revenue maintained at 85% of total revenue.
Strong cash generation, with £76.8 million cash balance after dividend payments of £31.2 million.
Commenting on these results, Chris Aspinwall, Chief Executive, said:
"During 2014 we have continued to make progress across the business against a backdrop of slowly improving market conditions and this has resulted in a welcome return to underlying growth. As expected, the improving market conditions meant we saw a reduction in the headwind we have been suffering in recent years from consolidations, restructurings and closures in our customer base. This allowed some of the growth we are generating through sales of our derivatives platforms, our service-based platforms and our regional expansion to flow through into overall growth rather than being masked by the decline in equities. Whilst the business saw a return to underlying growth the exceptional strength of sterling during the year, as highlighted in the interim results, more than offset this growth and affected the reported numbers. This effect is, however, believed to be transient and is not expected to continue into 2015."
Commenting on current trading, Chris Aspinwall continued:
"As we move into 2015, whilst systemic risks and pressures remain within the financial markets, we expect the gradual improvement in market conditions seen during 2014 to continue. This may result in further reductions in the headwind we face as well as increased opportunity across all our business lines. As a result, we expect that we will see a gradual increase in our growth rate from the level achieved in 2014 and this is supported by the current sales pipeline. As new opportunities open up, it is likely that some additional investment will be required and this will need to be carefully managed throughout the year.
Looking further ahead, we believe that stability and opportunity will increasingly return to the markets and as our multi-asset initiative gains further momentum, we will see growth levels returning closer to those we have seen in the past. We remain excited by the potential for our service-based offerings across all asset classes and segments of our market and believe that we will continue to play an important role as customers focus on efficiency, transparency, compliance and performance."
