rns23 Dec 2009 06:55
RNS - NICE STRONG MESSAGE -
The Company expects that the Corporate Division will continue to show strong revenue growth and, as a result,
the Company will invest in talented individuals and its IT structure. As commented in the 2009 Annual Report, the increase in corporate revenue is a combination of new business and existing recurring business. The nature of the corporate sales model lends itself to a high level of first year costs associated with winning new business. The Corporate Division is now in its second year and as anticipated, the Company is beginning to benefit from a reduced costs to revenue ratio. The Directors believe that remainder of the year will continue to be challenging for the Private Client Division, although there are some signs of the market stabilising with an increase in activity.
Given the revenue increases and cost cutting measures taken in this period, significant progress towards profitability has been made and the Directors feel that the Company is in a strong position to continue to build on this in 2010.