Royalblue software sales up 50%

GLOBAL demand from investment banks has bounced back to pre-11 September levels, according to share trading software group Royalblue. Annual sales of Royalblue's core Fidessa range of equity trading software rose by 50% to £56m, and operating profits surged 47% to £8.1m after the group overcame a sudden order hiatus after the 11 September attacks on the US.

It said that level of growth was unsustainable, but it should benefit from a battle for dominance among European stock exchanges. 'Order levels which were exceptionally strong in the first half of 2001 dropped in the immediate aftermath of 11 September but have quickly recovered to previous levels,' chief executive Chris Aspinall said.

A move to decimal share prices in America had helped support business there, but it remained less healthy than European operations where market consolidation on Frankfurt, London and the Euronext exchanges is lifting orders.

Royalblue said: 'The LSE has announced a major upgrade to its network. Further developments are scheduled at Euronext and Deutsche Borse. These changes will require additional Fidessa software or changes to existing Fidessa software.'

Royalblue will also begin support for Nasdaq Europe and Oslo exchanges this year. Pre-tax profits for the year to 31 December were marred by the £2.7m loss on the sale of the Rostrvm and Helpdesk businesses to their managements last summer. That pushed group pre-tax profits down 39% to £4.2m. Group sales rose 15% to £66.2m. The dividend rises 4% to 4.8p.