At constant scope and exchange rates, the activity was stable.
Acquisitions reinforce the Group’s strategic position
Throughout 2004, GL TRADE continued to integrate activities acquired from Misys at the end of 2003 and, by the second half of the year, had regained its overall profitability target (approximately 19% of EBITA). The integration of the product offer is already paying off and will be completed in 2005.
On November 1st, 2004, the Group also strengthened its position in the US with the acquisition of Davidge Data Systems, specialist in front and middle office instruments for American equity and option markets (€0.7m turnover for the last quarter 2004).
GL TRADE announced, on December 1st, 2004 the acquisition of Ubitrade, one of the leading providers in electronic trading and back office solutions, establishing its position through the entire Straight Through Processing (STP) chain (€ 2m turnover for the 4th quarter 2004).
International turnover continues to grow
GL TRADE shows strong growth in turnover outside France (79% of total turnover) with a net progression in the Asia-Pacific region (+77%) thanks to the combined effect of the Misys Asia integration and the impact of the economic revival on local financial markets.
The group also opened an office in Seoul to support local growth.
The UK remains GL TRADE’s most important area of development with 24% in total turnover.
The American zone generated turnover of USD16.2 m representing an increase of 13% in USD.
Performance in France continued to be held back by consolidation among intermediaries and a contraction of retail business (Minitel and television), and turnover fell by 11%.
Objectives attained
The first results, not yet audited, confirm the overall rise in EBITA margin to almost 19% in the second half year. This is particularly satisfying since it came despite a significant fall in the US dollar in the second half, along with some non-recurring costs in the fourth quarter. Overall, GL TRADE should maintain a full-year net margin before goodwill amortization of 13%, as previously announced.
Outlook
Contracts signed in the last quarter of 2004 and early 2005 are encouraging for the company’s overall business, particularly for newly acquired activities (Ubitrade).
The new GL STREAM WorkStation offering, together with new risk and back-office management products should enable the Group to consolidate its leading position in 2005.
Financial statements for 2004 will be published on March 14th, 2005. A presentation of results (SFAF) will be organized the same day.
