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.
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Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. You can find Tom on Twitter @tommyr345 The Motley Fool Australia has recommended GBST Holdings Limited and IRESS Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.