Organic growth of 7.2% after nine months
08 November 2005
Revenues for Linedata Services during the third quarter of 2005 came in at EUR 28.0 million, resulting in an organic growth rate of 3.9% on the third quarter of 2004. This growth, which is fully in line with the Group’s forecasts, takes the company’s revenues after nine months to EUR 84.8 million for an organic growth rate of 7.2%.
Linedata’s Asset Management business line remained extremely buoyant, securing an organic growth rate after nine months of 15.3%, at constant exchange rates, thanks to the ongoing strength of its English-speaking markets and on the back of a major contract signed with Thomson Financial. Moreover, Linedata Services remains very positive for the final quarter of 2005, following the expected pick-up in growth across continental Europe and given the promising potential in terms of new business. This is further demonstrated on the back of recent signings of new contracts, including one in Switzerland for the whole of our front-office solution.
Within the company’s Savings & Insurance business line, the major employee share ownership contracts won since the start of the year have yet to fully offset the slowdown in insurance-related business. Indeed, after nine months, revenues for the division are down 3.4%. Notwithstanding this, Linedata Services is continuing with its strategy to revitalize activity within the business line in order to lay the groundwork for the expected growth in 2006. As an example, the recent signing of a distribution contract with Datamat in Italy is a first step forward for the Group in the international development of its insurance activities.
Linedata Services’ Leasing & Credit Finance business line, for its part, continued to develop its commercial reach around its existing client base. The outlook for this activity is promising, notably thanks to the major development expected in Eastern Europe where the Group is an established solutions provider. Linedata Services is looking to secure a yearly growth rate in 2005 that is at least equal to +3.0%.
A targeted acquisitions strategy to further drive growth
Linedata Services has confirmed its organic growth target of 8% for an operating margin of at least 17% for 2005. This growth will be further heightened by the figures for US company GIS which was acquired during the third quarter and which will be consolidated as of October 1. Furthermore, Linedata Services is to pursue its policy of actively analyzing potential acquisitions for integration into the group.
Linedata Services will publish its revenues for 2005 on February 8, 2006, after the close of the markets.