Electronic trading technology provider Patsystems, whose attractions were first flagged up on these pages at 6p back in 2003, is in bullish mood, after lifting annual pre-tax profits by 37 per cent to £2.2 million. The AIM-quoted company increased turnover by 11 per cent to £17 million in 2007, despite the weakness of the US dollar and Japanese yen, and finished the year with robust cash balances of £3.2 million.

During the year, London-based Patsystems won several new customers, notably RJ O’Brien & Associates, a leading US independent futures broking house, and the international Australian finance and investment concern Macquarie Group.

Earnings rose 50 per cent to 1.2p, from which the board recommended a final dividend of 0.21p, taking the total payout for the year to 0.33p, a ten per cent increase on 2006.

Chairman Stewart Millman said that last year saw the company move its trading systems range to ‘demonstrable market leadership’ with its Pro-Mark professional product and new core platform, Global Trading. He claims this will be ‘state of the art for many years to come’. Millman maintains that the company views present prospects with ‘continued optimism’, despite ‘the uncertainty of the economic climate’.

For 2008, Patsystems, which offers investors good levels of visibility through its high levels of recurring business, is expected to grow profits to £3.8 million, giving earnings of 2p and a 0.5p dividend. At 27.75p, the shares are trading on a forward multiple of 13.9. We would argue that is a modest price to pay for an exciting technology play, although investors in at 6p who have yet to take partial profits might consider doing so. Reduce.

Patsystems	AIM	£41.24m	23.00p	0.00p
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Other company articles:
Deal delays dampen Patsystems			07/08/2008
Banks weigh on Patsystems			06/06/2008
Customer wins help Patsystems			03/03/2008
Customer wins help Patsystems			11/02/2008
Futures deal for Patsystems			14/11/2007