Market data specialist Arcontech sees profits jump as clients stay loyal
Arcontech, which specialises in financial market data processing, has reported a jump in profits as its blue-chip client base remains loyal despite tough economic conditions.
The AIM-listed firm’s pretax profit surged 45 per cent year-on-year to £539k in the six months ending 31 December 2023.
Meanwhile, revenues came in at £1.45m, up 6.8 per cent from the same period in 2022, which the firm said reflected a rise in new business.
This figure was entirely made up of recurring revenues from its clients.
Arcontech’s net cash ticked down 2.9 per cent to £5.7m after it paid a record £468k dividend last November.
The firm, which listed in London in 2016 and has a market capitalisation of £12m, maintained its full-year revenue guidance.
It estimated that pretax profit for the year ending 30 June 2024 would slightly exceed market expectations, as a result of higher interest income on cash balances and cost reductions.
Geoff Wicks, Arcontech’s chair, said: “We believe our strategy has brought us through a difficult period of poor market conditions well. Our focus is firmly on our core markets where we believe we are best placed to build sustainable growth.
“We have invested in our ability to grow globally and although lead times and competitive markets mean slow progress, we have started to experience some growth and we are confident about this continuing.”
The firm announced last October that it had struck a multi-year deal with a tier-1 bank client for its CityVision market data platform, which would grow Arcontech’s presence in New York and open the door for expansion into Europe and Asia.