At constant exchange rates, the increase in sales represented 21.6%.
| €m | 1st quarter 2005 | 1st quarter 2004 | Change |
| France | 8.727 | 7.696 | +13.4% |
| Rest of Europe | 24.555 | 21.000 | +16.9% |
| Americas | 4.303 | 2.972 | +44.8% |
| Asia | 5.451 | 4.113 | +32.5% |
| Total | 43.035 | 35.783 | +20.3% |
This figure includes €7.5m in sales for Ubitrade, ahead of expectations. These sales were generated mainly in France (€2m) and Europe (€5.1m). It also includes €1m from Davidge Data Systems (DDS) generated in the USA. Both businesses were acquired in the fourth quarter of 2004.
With the continuing consolidation of financial intermediaries, particularly in France and Europe, the historical trading business saw a fall in sales, as expected, of 3.7% on a constant scope basis. The biggest impact comes from the merger of Crédit Agricole and Crédit Lyonnais , which will reduce sales by €2m over the course of 2005. GL TRADE’s strategic response to this fundamental trend in its market has been to vastly enrich its offering in the area of order management and expand its client base to include buy-side players, through partnerships with sell-side clients.
As a result, the group’s main growth areas are now in the USA and Asia, despite the weakness of the US dollar;
- In the Americas, growth in dollar terms and on a constant scope basis was 4% over the quarter. The acquisition of DDS has enhance d our presence and credibility in the US market, where the combined offering now gives all clients direct access to more than a dozen US markets, including the main Electronic Communication Networks and the OCC cleared US Options markets.
- Sales in Asia grew by 32.5%, under the combined effects of economic recovery and GL TRADE’s strong competitive position. GL TRADE further strengthened its position by expanding its customer base in Taiwan, Thailand and India.
Against this background, GL TRADE maintains its 15% sales growth target over the whole year at constant exchange rates, and continues to expect EBITA margin of between 18% and 19% and net margin of around 13%.
Final financial statements for 2004 will be submitted for approval by the Combined General Meeting of Shareholders on May 25th, 2005 in Paris. The meeting will also vote on the proposed dividend of €1.00 per share.
