Releasing its annual financial results, GBST said revenue had grown by 8 per cent to $83.0 million while net profit after tax had almost doubled from a low base to $6.0 million. The group also decreased its senior debt by $4.0 million to $14.0 million in the year.
The year saw GBST’s first direct sale of GBST Syn~ (its back-office technology for processing equities, derivatives, fixed income and managed funds transactions) in the United States.
The group also upped UK sales of its wealth management offering, GBST Composer, by 30 per cent, adding that it had also had a number of new client wins in Australia during the year.
GBST’s final dividend of 3.5 cents per share was 1.0 cents per share greater than the previous year.
New clients continue to “go live” with GBST, resulting in an increase in “high-quality, recurring annuity licence income”, the group stated. Sales growth had also been supported by technology enhancements.
The wealth management division was one of the major contributors to the improved figures, with Australian revenue up 4 per cent in a subdued market while international sales grew substantially resulting in a 31 per cent revenue increase.
GBST Composer has been picked up by three of the UK’s top six wrap and platform providers, the group said. Two new clients will use Composer to launch separate direct-to-consumer and adviser-based self-invested personal pension products on a single administration solution, GBST stated.
Locally, the group’s Composer software is ready for Future of Financial Advice (FOFA) and SuperStream legislation and GBST said it expects to benefit from the industry’s response to future regulatory change.
The company added that the UK’s FOFA-like Retail Distribution Review changes will also support sales growth, with GBST having seen opportunities from UK life and pension companies.
GBST said it has increased its staff numbers to around 380, hiring in all locations and expanding offshore development resources to increase capacity.
