GL TRADE confirms strong growth in both turnover and margins for 2004

Paris, March 14th 2005

GL TRADE’s Board of Directors met on March 11th, 2005 to approve accounts for 2004.

Turnover has been confirmed at €150.1 m, an increase of 17.2%, influenced by its transactions of external development achieved since the end of 2003: Misys, Glesia, Iris, Davidge and Ubitrade. At comparable scope and exchange rate, the turnover has remained stable.

In the current trend of market conditions undergoing strong consolidation, especially in France, GL TRADE continues its international development and has achieved 79% of its turnover outside France. This global positioning has allowed the group to profit from all market opportunities and, in particular from the Asian markets in 2004. In this sector, GL TRADE has shown a growth of 77%, thanks to the economic revival on local financial markets combined with the integration of activities acquired at the end of 2003.

Operating income rose to €27.1 m. After restructuring strategies put in place at the beginning of the year following the integration of Misys, the margin ratio increased from 17.6% in the first half year to 18.8% in the second, despite a continuous fall in US dollar. The objectives announced have been met thanks to a skilled management of achieved investments and a strict control of operating costs.

Net income before goodwill reached €20.1 m, an increase of 24.8%. The increase in operating income, the drop in net exchange losses and the use of past tax losses, as all regions particularly Asia are now profitable, contributed to this result.

Net income after goodwill amounts to €16.4 m, an increase of 19.3%. Valuation tests have been carried out on acquired companies. No further depreciation of goodwill will be entered into the accounts 2004 on the occasion of their publication in conformity with IFRS standards.

Net cash dropped from €48 m at the end of 2003 to €11 m at the end of 2004. This change is principally due to global group external growth operation (€40 m) plus the purchase of 8% of our own shares to facilitate the divestment of Reuters and the increase of the free float (€20.3 m). These shares were cancelled at the end of July 2004. Our group can now build its development on a fully open capital-intensive structure on the market.

Dividend. The Board of Directors agreed to propose a dividend of €1.00 per share to the annual General Meeting of shareholders on May 25th an increase of 43% compared to 2003. The dividend is to be paid on June 9th, 2005.
Outlook 2005 In 2004, GL TRADE took advantage of three targeted opportunities of external development.

UBITRADE and IRIS bring us the excellence of their solutions for back-office and market-making options. In addition, with the DAVIDGE acquisition, we now benefit from high-performance order routing systems on the American equity and option markets.

GL TRADE will propose GL STREAM WORKSTATION in 2005. GL STREAM WORKSTATION is the culmination of the migration of all diverse technologies acquired since 2001. GL STREAM WORKSTATION, in association with new risk management and back-office tools, will help to consolidate the unique position of the group as the only supplier to provide a solution to automate the whole of intermediation activities; from front to back-office on the options and derivatives markets.
GL TRADE is targeting new development opportunities in Central Europe and especially in Russia where a number of contracts have been signed.

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