- Sales : - 0.6 % (+2.4% adjusted for changes in the scope of consolidation and at constant exchange rates)
- Net profit before goodwill: 12.6% of sales
| € millions | 2002 | 2003 | % 2003 |
| Sales | 128.9 | 128.1 | 1090.0% |
| EBITDA | 35.0 | 30.5 | 23.7% |
| Operating profit (before goodwill) | 28.0 | 25.0 | 19.5% |
| Interest and similar income/(expense) | (1.2) | 0.6 | |
| Exceptional items | (0.8) | (2.2) | |
| Net profit before goodwill amortisation | 17.0 | 16.2 | 12.6% |
| Net profit after goodwill amortisation | 14.9 | 13.7 | 10.7% |
| EPS (group share) (1) | (1.39) | (1.32) | |
| Fully diluted EPS (group share) (2) | (1.36) | (1.28) | |
| Proposed Net Dividend (per share) | (0.70) | (0.70) |
(1): based on shares in issue at 31 December 2003: 10,338,288
(2): including stock options in issue at 31 December 2003: 374,221
Business:
As with many companies in its sector, GL TRADE's performance was affected by international economic conditions. The strengthening of the euro against other currencies had an additional negative effect. GL TRADE was amongst the sector companies whose performances stood up best to these trends.
Sales came to €128.1 million (down 0.6% on 2002) including negative exchange rate effects. This figure includes sales of €2.8 million from the three activities of Misys Securities Trading Systems (MSTS) acquired in November 2003 in London, Hong Kong and Tokyo.
Restated for exchange rate effects and this change in the scope of consolidation, sales would have grown by 2.4%. The group's international coverage means it has considerable exposure to currency movements: 43% of sales (excluding acquisitions) were generated by subsidiaries outside the euro zone. The negative effect of currency movements on consolidated revenues was 5.3% of 2003 sales, excluding acquisitions.
Against this background, GL TRADE was able to limit growth in costs and continued to improve productivity in its Business Units. At 12.6% of sales, net margin before amortisation of goodwill was in line with the target range of between 12% and 13%. GL TRADE remains in very robust good health, and is ideally placed to begin a new phase of growth in 2004.
2003 DIVIDEND:
The Board of Directors agreed to propose a dividend of €0.70 per share to the Annual General Meeting of Shareholders. This is identical to the dividend paid in 2003. The dividend will be paid on 16 June 2004.
OUTLOOK:
The trading, client and market connectivity, order management and post execution business areas have recently been brought together under the name GL STREAM TM Front to Back Solution. GL STREAM™ offers a complete order management system. It is integrated and modular, using an open architecture, and draws on the most recent advances in our products (the V5 generation), to offer advanced functionality in areas such as Program Trading, position management, basket management and internal matching.
The company is actively continuing the process of integrating the MSTS subsidiaries it acquired in November 2003. Functionality from the Market Trader Asia and Europe solutions will enhance the GL STREAM™ offering over the course of the current year. In addition, this acquisition means that GL TRADE now has a Settlement & Delivery solution, GL SETTLE.
In early February 2004, GL TRADE created a joint venture with SIA, GLESIA, to strengthen the Group's position in Italy and allow it to offer its clients a solution covering the whole electronic trading process.
For 2004 the Group is targeting growth of between 15% and 20%, including MSTS and GLESIA. GL TRADE aims to maintain its margin before goodwill amortisation at between 12% and 13%.
Diary:
Approval of accounts: AGM, 25 May 2004
Dividend payment: 16 June 2004
First half figures: 26 August 2004.
