Platform provider posts 58pc profit increase
Strong growth in international markets has seen platform provider, GBST's first half 2014/15 increase by 58 per cent.
In a statement to the Australian Securities Exchange this morning, GBST announced a net profit for the six months to 31 December 2014 of $6.9 million, up from $4.4 million.
GBST managing director, Stephen Lake, said the results reflected the success of its investment in international projects, with international sales exceeding domestic sales for the first time.
"GBST's continued strong growth demonstrates the effectiveness of our business strategy, which is focused on building annuity licence sales in international markets," he said.
"We are working hard to capitalise on our industry-leading technologies, and are particularly pleased that our wealth management division secured a record number of new international projects despite an increasingly competitive market. Our recent aim has been to secure new pensions business in the UK, where regulatory change is opening opportunities and GBST Composer supports five of the leading pension providers.
"Our capital markets division successfully completed GBST Syn~ implementations in Asia for a major international bank and a regional clearer. In North America, our first direct US client has achieved significant synergies from GBST Syn~.
"Our Australian operations remain the bedrock of our business, and we increased revenue in both the capital markets and wealth management sectors. This was a good result in difficult trading conditions."
GBST reported that its senior debt had been reduced to nil in the first half of the financial year, and that the company held $2.8 million net cash at 31 December 2014.
In the statement to ASX, the company announced that the board had declared an interim dividend for 5 cents per share, up 25 per cent on the same period in the 2013/14 financial year.
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Nicholas O'Donoghue
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