Shares in Fidessa fell more than five per cent in morning trading after the fintech vendor warned that continuing tough market conditions will make growth "challenging".
In an interim management statement, the London-based firm confirmed that the troubled equity market and associated attrition and pricing pressure seen during 2012 have continued into the first quarter, making it challenging to "deliver the growth levels it has previously seen".
However, Fidessa says growth from its derivatives and service based platforms, as well as regional expansion, notably in Asia Pacific, helped to offset these issues, meaning that this year is expected to see a similar performance to 2012.
Looking ahead, the company insists it has a good pipeline and reiterates its view that "a floor will eventually be reached in the decline of equity markets which will allow Fidessa's core end markets to gradually return to a more stable state".
Analyst Investec has backed this position, suggesting that after a flat 2013, "the building pipeline in derivatives and service platform deals, from both large enterprise customers and mid-tier customers, suggest that growth will resume in FY14E".
Shares in Fidessa were down 103 pence, or 5.4%, to 1785 pence per share at pixel time.