GBST Holdings Limited (ASX:GBT), Australia’s leading provider of securities transaction technology,
today announced its results for the year ended 30 June 2006.
- Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 89 per cent to $9.0 million
(FY2005: $4.8 million).
- Profit after tax of $6.1 million, up 44% on prior comparative period (“pcp”) for the year to 30 June 2006.
- Operating margins continued to grow, with EBITDA margins increasing to 33.7 per cent of operating revenue (FY2005: 21.5 per cent).
- Net operating revenue was $26.7 million, up 21 per cent (FY2005: $22.2 million), including $1.3 million from Palion since December 2005.
- Maiden listed dividend of 4.0 cents per share fully franked.
Results Summary
| 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 equity 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.”
Operations
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).
Outlook
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)
About GBST
Established in 1983, GBST (Global Banking and Securities Transactions) is the largest provider of securities transaction
processing in Australia and a leading provider of transaction solutions for the financial services industry.
Specialising in the provision of robust trading and settlement systems, GBST provides solutions for a wide variety of
market participants including global investment banks, custodians, clearers, stockbrokers, exchanges, margin lenders,
and cash management providers.
With offices in Brisbane, Sydney, and Melbourne, GBST has over 130 staff committed to providing advanced transaction
solutions.
www.gbst.com
Contact:
Stephen Lake
Managing Director/CEO
GBST Holdings
Telephone: +61 7 3331 5555
Email: stephen.lake@gbst.com
OR
Kieran Wallis
CFO
GBST Holdings
Telephone: +61 7 3331 5555
Email: kieran.wallis@gbst.com
Media enquires:
Ashley Rambukwella
Financial & Corporate Relations
Telephone: + 61 2 8264 1004
Email: a.rambukwella@fcr.com.au
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