Fidessa’s customary caution

Fidessa, the financial asset trading systems provider, said it has seen good growth since the start of the year as a result of significant new orders. However a more competitive recruitment market, and its previously announced cautious increase in development spending, means that profit margins in H111 will be similar to that in 2010 (c15%). It previously said FY11 margin would also be slightly down on FY10 (see Fidessa optimistic after sound FY10). Management now expects full year revenue growth in constant currency “at similar levels to that seen in 2010”, so c10%. Nonetheless, Fidessa remains cautious on the prospects for 2011, because the “challenges of uncertain regulation, macroeconomic environment and structural pressure remain within the financial community.”