This morning GBST Holdings Limited (ASX: GBT) reported its half-year results for the period ending December 31 2018. Below is a summary of the results with comparisons to the prior corresponding half.
- Total revenue and other income of $43.9 million, up 3%
- Net profit of $3.7 million, up 48%
- Operating EBITDA of $5.4 million
- Basic earnings per share of 5.44 cents, compared to 5.53 cents
- No interim dividend
- Cash on hand of $9.6 million
- Guidance for full year revenue growth of 5%-7%
- Guidance for operating EBITDA before R&D expenses of at least $18 million
After a tough period GBST is something of a turnaround story as it invests heavily in its technology and systems with "strategic R&D" over all of fiscal 2019 expected to be between $21 million to $22 million.
The group has financial services clients across Australia and the UK and provides wealth management platforms, alongside a separate division that provides clearing and settlement services technology to brokers or other capital markets facing groups.
Despite today's 16% share price rise to $1.50 the stock is still down 38% over the past year, but traded above $6 in May 2015 before it became apparent it would need to invest heavily in technology upgrades to ensure it remains competitive.
Others in the financial services technology space include Iress Ltd (ASX: IRE) and platform provider HUB24 Ltd (ASX: HUB).
