Financial services technology provider GBST has posted a poor result for the 2015-16 financial year, with most key metrics down on the previous 12 months.
GBST's net profit after tax for 2015-16 was $9.3 million, down 39 per cent from $15.3 million in 2014-15.
Total revenue was down 5 per cent to $108.1 million, adjusted earnings per share were down 31 per cent to 19.9 cents, and the final dividend was flat at 5.5 cents.
GBST managing director Robert DeDemonicis said 2015-16 had been a "year of transformation" for the company.
"Following a difficult first half due to leadership transition, internal restructure, project delays and deferred client spending in the UK, Australia and Asia, we have respositioned the company for the future," Mr DeDemonicis said.
"We completed the year with a healthy improvement in the second half, proving the validity of the changes to our business operating model and strategic focus earlier in the year," he said.
Mr DeDemonicis said 2015-16 was a "tale of two halves" for GBST.
"Operating EBITDA [earnings before interest, taxes, depreciation, and amortization] for the first half was $8.5 million. The second half was a significant improvement with operating EBITDA of $11.5 million," he said.
Operating EBITDA margins also improved compared with the first half, he said.
"Had it not been impacted by a decline in the value of sterling compared to the Australian dollar caused by Brexit, on a constant currency basis, operating EBITDA for the second half would have been $12.5 million, in line with guidances," Mr DeDemonicis said.
GBST's business model has been restructured to focus on retail wealth and institutional markets, and the management team has been strengthened, he said.
"New digital technologies are transforming the retail wealth industry, helping companies to realise economies of scale, engage with clients and manage risk," Mr DeDemonicis said.
"This is an ongoing trend which, driven by regulation, is changing the retail wealth industry and we are accelerating technology development to meet the increased requirements of our clients," he said.
NAB has told the fintech industry that it will partner with companies that do what the big bank cannot do, in whatever capacity that may be....
Refinitiv has partnered with PhillipCapital Australia to offer trading of Australian and international exchange traded instruments via the E...
Fintech and innovation leaders have come out against the government’s 2019 budget saying that there was not enough in it to support innov...