Despite a slowdown in H2, and with sales cycles still “difficult to predict”, AIM-listed provider of derivatives trading software, Ffastfill, turned in a set of creditable FY results, especially with regard to profit recovery.
Revenues for the year to 31st March grew by 9% to £15.5m, accompanied by a near doubling of operating profit which took margins from 8.5% to 13.6%. ‘Adjusted’ EBITDA margins also expanded from 22% to 27%. Much of this improvement was credited to the company’s move to SaaS, which now comprises 78% of group revenues, up from 74% the prior year. The main benefit was to reduce the amount of third-party product resale, which added 5 points to gross margins.
Ffastfill’s main focus overseas is in Asia, on the back of its £1m acquisition of Australian middle office software firm, Exchange Technology, in 2008. Executive chairman, Keith Todd, also has his eye on expansion in North America, but as a “medium term priority”. In the prior year Fffastfill derived just under 20% of its revenues from Asia and NA; it’s not clear yet what the mix was in the year just closed, but it’s good to see another ‘Little British Battler’ expanding in overseas markets.
Ffastfill has been a bit of a dream ride for investors over the past year, with shares up again as I write, to nearly 12p, 60% higher yoy. Good stuff.