Results round-up

Fidessa

With profits strongly boosted by the weak pound, Fidessa declared both a final and a special dividend as the financial software group said the increased headwinds in its markets during the second half of the year had already begun to reduce.

For the calendar year, there FTSE 250 group generated £331.9m revenue, up 12% on a reported basis, or 3% when the benefit of sterling weakness is excluded. The £173.6m in the second half was much stronger than the City's £166m consensus estimate.

Profit before tax jumped 25% to £48.8m, or just 1% at constant currencies, with diluted earnings per share up 21% to 92.3p.

The board plumped up the final dividend 11% to 28.2p per share and also added a 50p special dividend that takes the total 2016 payout to 92.5p per share.

Thanks to strong cash generation, even after these payments, the group will still have a healthy £95.2m cash in the bank.

Chief executive Chris Aspinwall said a market already being affected by structural and regulatory drivers began to face new business uncertainty from the political environment.

"For Fidessa, however, although there was some evidence of stress during the second half of the year as firms took stock of the impact of the Brexit decision and the US election, levels of new business activity generally remained high and, when combined with the weakness of sterling, this enabled us to deliver solid growth for the year as a whole.

Surface Transforms

Carbon fibre reinforced ceramic materials manufacturer Surface Transforms posted its half-year financial results for the six months to 30 November on Monday, with turnover decreasing to £330,000 from £780,000 in the first half of the prior year.

The AIM-traded company said its total comprehensive loss widened to £980,000, from £120,000, with £310,000 of that difference related to the late receipt of a tax credit eventually received in January 2017.

Its loss before tax widened to £980,000 from £430,000, and cash at 30 November was £2.7m, down from £4.78m at the start of the period.

Surface Transforms reported capital expenditure on property, plant and equipment of £680,000 during the period, which it said was mainly related to the new Knowsley facility, and an increased inventory of £190,000 to £760,000.

Trading remained in line with management expectations, the board said.

On the operational front, production was now underway at the new Knowsley factory, the board confirmed, and post period end, the company won its first tier two supplier nomination to a UK automotive original equipment manufacturer.

“Historically, the company has generated increased revenues in the second half of the year, with the near equal split of sales in 2015-16 being unusual and reflecting the issues described above,” commented chairman David Bundred.

“In the current financial year, the company expects to revert to the historic norm.”