FFastFill

HOLD

12/04/2011 Ben Jaglom

Derivatives trading software concern FFastFill (FFA) released a trading update in which it reported that results will be 'in line with market expectations.'

The AIM-quoted venture declared that in the period for the year to March the company 'has continued to grow successfully' also making 'further progress in the implementation of its global Software as a Service (SaaS) strategy.'

It drew attention to what it described as 'significant contract wins' in the areas of trade execution services, middle and back office with the board adding that it is 'pleased with the progress' made in growing the business in Asia. A year end position of £3.3m in net cash was reported (2010: £2.4m)

Chairman Keith Todd enthused that the 'competitive strength of our offering' remains strong adding that 'we continue to see an improvement in the business environment and we have a strong pipeline of prospects across all three regions where we operate.' Full-year results are to be released on 23rd May.

Following the update analysts at Canaccord held their existing forecasts. The analysts are forecasting pre-tax profits to almost double from £1.2m to £2.3m, on revenue of £15.3m (2009: £14.3m). Furthermore EPS of 0.59p and 0.7p is pencilled in for 2011 and 2012, respectively, with the shares currently trading at just over eighteen times 2011 earnings.

Last recommended by Growth Company Investor this January at 9.25p the shares have gained 19% since, currently trading at 11p. The company has gained traction of late as the recovery among its customers gathers pace following the fall out from the financial crisis. We upgrade the shares from hold to add.