Having issued a profit warning barely a month ago (see Patsystems cautions on H2 profits) AIM-listed derivatives-trading software company, Patsystems, was dealt a further blow with the collapse of US broker-dealer MF Global. Patsystems warned that MF Global was “an important customer of Patsystems accounting for approximately £3m of recurring revenue”. MF Global also owes Patsystems some £0.3m.
In July, Patsystems reported a 3% decline in half-year revenues (see Patsystems: hosted revenue on the rise) which, with the profit warning, suggests that FY revenues would fall short of the £22m achieved in 2010. The failure of MF Global could therefore put perhaps 15% of Patsystems’ revenues at risk. Other UK companies for which MF Global is a client include Fidessa, whose management says they do not expect “any material impact” on their FY results (see Fidessa looks to large customers for stability).