Sound performance is not the most ringing endorsement of a company but there are worse positions to be in. For derivatives software and services provider FFastFill ‘sound’ is actually a good place to be because it reflects core strength.
It ended the year (to March 31 2012) with revenue up 11% to £17.2m and in line with market consensus (vs a 9% lift in the previous year see here). Profitability is still an issue though, with profit before tax of £0.6m (vs £1.8m), so there is not much room for error here. However, operational markers tell a better story. 2011 saw substantial investment, from building the additional infrastructure that sensibly supports its SaaS business, to two acquisitions (Spread Intelligence and WTD Consulting) which took their toll on profitability. It is clear that the company is building and buying strategically – e.g. Spread Intelligence did not add revenue but it did bring IP, WTD drove its middle office play.
Talking to chief executive Hamish Purdey it is apparent that Ffastfill is morphing into a stronger company. The SaaS side of the business is going well with SaaS revenue up 13% yoy to £13.6. That may not sound like much but the bulk of Ffastfill’s revenue already derives from SaaS so it is well placed to reap the rewards providing it can generate additional volume. Acquisitions have helped it diversify in terms of product scope (offerings in the back, middle and front office, and around risk management), and geography. It is seeing benefits in terms of existing customers taking additional areas of functionality and new customers coming on board and there is plenty of scope for cross-selling opportunities. In an international (and volatile) trading environment, its global capability and support for straight through processing, positions it to win more deals.