GBST Holdings Limited (ASX:GBT), Australia’s leading provider of securities transaction technology, today announced its results for the year ended 30 June 2006.
| Results Summary for | FY2006 ($000) |
FY2005 * ($000) |
% Increase |
| Net Operating Revenue | 26,721 | 22,166 | 21% |
| EBITDA (Earnings before interest, tax, depreciation and amortisation) | 9,025 | 4,773 | 89% |
| Profit before tax | 8,628 | 3,540 | 144% |
| Profit after tax | 6,136 | 4,260 | 44% |
| Earnings per share – adjusted basic (cents) | 13.96 | 9.26 | 51% |
| Earnings per share – diluted (cents) | 13.77 | ||
| Final dividend per share (cents – fully franked) | 4.0 |
* For the purposes of comparison, reported 2005 figures have been adjusted according to the Australian equivalent of IFRS.
GBST CEO and Managing Director Mr Stephen Lake said: “This strong result demonstrates the success of our strategy to develop recurring licence revenue from proven, reliable financial transaction solutions, underpinned in 2006 by increased domestic quity trading volumes.
“The Palion derivatives business, acquired in December, is now fully integrated and has been a strong contributor. We have maintained costs across the group while winning new clients, broadening our range of solutions and strengthening management.
“GBST’s balance sheet continued to strengthen and we improved cash reserves to $10.6 million at 30 June. The company has no debt.”
GBST strengthened its product range during the year with the release of GBST Floats™ and GBST Margin Lending Interface™. The acquisition of Palion also added DCA™, the leading client accounting system for options trading in Australia, the TOMS™ order management system and the RMS™ risk management system to our range. Development of GBST WealthFront™ has been delayed, as work by a third party has not met our strict quality standards, and we are currently reviewing the most effective way to complete the product.
The GBST Shares™ platform now used by 44 stockbrokers and has a 55 per cent market share; while 22 stockbrokers use DCA™, representing more than 50 per cent of the equity options market. GBST’s client network now extends to 55 brokers, up from 41 last year.
New clients included the Citigroup Custody and UBS third party clearing service businesses, as well as 11 new broker clients using Palion products. Approximately 40 per cent of ASX equity trading volume was processed by GBST clients, up from 34 per cent last year.
Strong equity market trading increased demand for consulting and software customisation, revenue of $2 million from consulting and software development was up $1.2 million compared with the previous year. GBST has a strong pipeline of software development projects and continues to focus on product research and development, expensing $3.3 million for research and development in FY2006 (FY2005: $3.0 million).
Stephen Lake said, “GBST will continue to expand through introducing new or enhanced products that secure additional recurring revenue.”
“We anticipate that industry consolidation will bring acquisition opportunities, and will continue to focus on businesses that have synergies with GBST’s culture, business model and client base both in Australia and overseas. These opportunities warrant maintaining our current cash reserves.”
Final Report
Analyst Briefing Results 2006 (PDF 818 kb)
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GBST acknowledges Traditional Owners of Country throughout Australia and recognises the continuing connection to lands, waters and communities. We pay our respect to Aboriginal and Torres Strait Islander cultures; and to Elders both past and present.
