Software firm sees profits surge

SPECIALIST software company Fineos boosted its pre-tax profits by nearly €2 million last year and saw revenues almost double, despite challenging marketing conditions.

According to accounts filed with the Companies Office which covered the 12 months to the end of June last, pre-tax profits at the Dublin-headquartered firm went from just over €3.1m to €4.8m.

The company’s full year turnover went from €17.4m to €32.5m.

Operating profit, meanwhile, rose from €3m to €4.6m.

Fineos, which provides software solutions to the financial services sector and, more specifically, the insurance and bancassurance areas, was established in 1993.

The company currently employs around 200 people across its Dublin office and associated offices in Europe, Australia, New Zealand, the US and Canada.

The company’s management said that while the company’s market environment remained “very challenging” in the second half of the calendar year 2010, which was accentuated by a slowing in client spend across most geographies, actual market potential for its products has remained positive, with the company set to further invest in its pipeline.

“The marketplace has seen the addition of new competitors, both local and overseas, entering each of the regions where Fineos is currently competing,” the company’s report stated.

“Maintaining growth and market share is an ongoing challenge and, combined with the increase in operating costs, continues to put pressure on maintaining operating margins.”

It added that “close management and tight control” of its fixed cost base remains a key emphasis given its growth in new business sales in its non-European markets.

The volatility of the euro against sterling and other relevant currencies also resulted in direct financial gains for Fineos in its last fiscal year.