Investment: Royalblue has finger on IT pulse
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.WE'VE HAD the millennium, the euro, and the Internet. But a new fad is about to hit the UK's information technology industry.
It's called customer relationship management, which basically means installing software that helps companies to keep their clients happy. In a few years' time, the experts insist, every self-respecting firm will have such a system.
Royalblue, the software firm, provided evidence of that trend yesterday. Its financial trading systems division, which has been the traditional source of growth, reported revenues up 41 per cent to pounds 15.7m - a spectacular increase by most standards.
But its customer interaction software unit - which supplies IT help desk and customer support systems - grew even faster, expanding revenues by 63 per cent to pounds 11m. Excluding the costs of last year's flotation, Royalblue's pre-tax profits jumped 50 per cent to pounds 4.54m.
"Increasingly it is customer service that gives companies an advantage," says John Hamer, Royalblue's chief executive. "That's driving demand for customer support systems."
The demand is bringing in new clients. While Royalblue still works closely with the large investment banks who use its trading systems, the company has started supplying customer services software to clients as diverse as Barclays' online banking division and the Lancashire Constabulary.
Mr Hamer dismisses suggestions that demand is likely to slow down later this year. "We think the market will accelerate," he says.
As a result, Mr Hamer sees no need for acquisitions. He prefers to spend heavily on developing new applications, such as derivatives and treasury products, which are based on the same basic architecture as its existing software.
For analysts, this is the key to the company's value. "The prospects of the business probably justifies the current valuation," says Ian Spence, an analyst at West LB Panmure.
Stockbrokers forecast profits of pounds 6m this year, putting the shares, which hit a new high of 450p yesterday, on a forward earnings multiple of 39 times.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments