UK derivatives trading software vendor Patsystems is reporting an 11% increase in group turnover to £5.3m for the six months ending 30th June 2004, although operating losses increased, mainly due to development of its new Trademark dealing system.
The group reported operating loss (before depreciation, amortisation and exceptional operating expenses) of £471k for the six month period, an increase of 17% over the same period in 2003.
Operating expenses were up 12% compared with the first six months of 2003, due mainly to ongoing development of the vendor's Trademark platform.
Turnover generated by trading systems accounted for £4.8m of group turnover – an increase on 2003 of £587k (14%).
Additionally, turnover generated by trading systems was up 14%, but turnover from exchange systems fell to £555k compared with £629k for the same period last year, which the vendor says reflects a reduction in support revenues generated in Japan.
Compared with same period last year, total lots traded in the first half increased by 31% to £102m, due to a larger client base and an increase in trading.
In a statement, Kevin Ashby, chief executive, Patsystems, says: "We are confident that the year-end results will show significant revenue growth over 2003, despite the current effect of exchange rate movements."
Patsystem says trading cash burn is expected to diminish considerably in the second half as the benefits of the new contracts will be reflected in the cash flow.
The AIM-listed company achieved "maiden trading profitabality" for the first time last year.