London 22nd July 2004: Rhyme Systems today announces it has reached its first year end with total revenues of £19 million - slightly ahead of its management buyout plan - and with an order intake of £10.1 million in the period since the buyout in November 2003.
"This is a very encouraging outcome for the year and our backers - are pleased with our progress. The cash position is also good, which means we are able to pay back some of our bank debt early. Our profit result was in line with the business plan. It's a tribute to our staff, who have been through a period of enormous change and delivered these wonderful results," says Chris Potts, CEO of Rhyme Systems.
Rhyme Systems specialises in helping i I nvestment firms unlock the hidden value of the back-office with clients including Lloyds TSB, Barclays, Jupiter, Morgan Stanley, Newtons, Brewin Dolphin and LCH.Clearnet Group. Rhyme was created in November 2003 as a result of a management buyout from Misys PLC, funded by private equity specialist Primary Capital. The first five months of the year to the end of May 2004 (Rhyme's financial year) were as part of Misys PLC.
Chris Potts explains: "There have been some important business wins in the closing months of the year. Several key clients, including Rathbone, Coutts, Framlington, M&G, HBoS, Instinet and Investec have extended their investment in our products and services. We have seen significant business wins for all our major product lines, including several commitments to the new generation of Quasar - Quasar 6 - and sales for our other key products, Fiscal and Arrow. Having invested in significant re-engineering of these products, it is very gratifying to receive such strong support from our clients and witness such an upsurge of interest from the wider market."
Rhyme reaches its year-end with a healthy order book and several new business opportunities, including license and service renewals, in process. Rhyme sees signs of a stronger market, with more activity and interest in systems investment.
"We also appointed David Howard as our non-executive chairman at the Rhyme Board last month. This is an important step - completing the Board and bringing us valuable experience and insight into how best to develop and manage Rhyme as an independent company. Our focus for the next 12 months is firmly on the back-office operations end of the UK asset management market," Potts concludes.