virt-x: Audited Results For The Nine Months To 31 December 2001

virt-x plc group, the operator of the virt-x pan-European blue chip exchange, announced yesterday its audited results for the nine months to 31 December 2001, following a change in accounting date from 31 March.

Key Financials

• Pre-tax loss for nine-month period of £4.0 million (year to 31 March 2001: loss of £103.6 million)
• Pre-tax loss before goodwill charge: £3.9 million (March 2001: loss of £17.9 million)
• Operating loss before exceptional items and goodwill in current period of £1.0 million (March 2001: loss of £8.9 million):
  • first 6 months trading on virt-x market: market losses of £1.3 million
  • last 3 months trading on Tradepoint Europe: market losses of £3.1 million
  • other income including interest receivable: £3.4 million (March 2001: £0.4 million)
• Operating exceptional expenditure: virt-x launch costs of £3.3 million (March 2001: £9.3 million, including £2.8 million for development of virt-x)
• Finance received from TP Consortium and its members since 1 April 2001:
  • exercise of share warrants : £8.7 million
  • drawings under Limited Recourse Facility Agreements: £13.7 million

Operational Highlights

• Key trading statistics since virt-x market launch - 25 June to 31 December: - average daily turnover: EUR 2,396 million
  • average daily number of trades - total: 32,456
  • average daily number of trades - non-Swiss: 1,600
  • 98% of trades executed on public limit order book, 72% by value
• Market share in Swiss Blue Chips has risen from 71% to almost 80% since launch
• Over 2,600 traders now connected
• Trading volumes remain solid - despite volatile market conditions

Commenting on the announcement Antoinette Hunziker-Ebneter, virt-x CEO, said: "The level of trading and the positive feedback that we have received from our customers since the successful launch of virt-x on 25 June 2001 confirms the merits of the straight through processing model. The increase in our Swiss market share clearly demonstrates there is demand from international investors for an efficient cross border equity market. "We continue to work closely with our customers on a number of liquidity programmes and our target of capturing 10% of pan-European equity volume by the end of our first year of operations is realistic."