This morning's trading update from SaaS-oriented derivatives software player FfastFill highlights a "strong increase in profitability" for the second half, as expected. Likewise revenue for the year to end March 2012 is expected to be in line with expectations, which should see the top line growing by around 16% to reach £18m. This is welcome confirmation of an improving performance, following an H1 in which FfastFill reported flat revenue and a loss before tax (see Profits still elusive at FfastFill but growth plans in play).
The best news is on contracts, with a “record” twelve month order book of £20m boding well for the period to come. Shares are up 2.7% at 13.35p in early trading, and up 15% so far this year.
Acquisitions were a factor in the H2 performance of course, notably the purchase of US-based WTD Consulting during the year. And going forward the addition of such consulting assets could be very helpful to both selling FfastFill's software as a service propositions and raising its overall margins. Given that SaaS profits remain highly elusive for so many providers, we also liked the sound of FfastFill's move to start delivering third party software from its own cloud platform (see FfastFill enters into managed cloud services).