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GBST pre-tax earnings up 40%

Platform technology provider GBST Wealth Management has increased its operating earnings before interests, taxes, depreciation and amortisation by 39 per cent to A$6.6m (£4.4m) in the second half of 2012, compared to A$4.7m during the second half of 2011.

The firm’s revenues rose 20 per cent from A$18.8m in 2011 to £22.6m in 2012.

GBST attributes some of the performance to the August signing of a long-term contract to provide administration services to Fidelity Worldwide Investment.

The figures relate to GBST Wealth Management’s operations across the UK and Europe, although the majority of business is within the UK.

In November, GBST was awarded a A$1.64m grant by the Commonwealth Government Illawarra Region Investment and Innovation Fund. The firm will use the grant to recruit 15 technology development staff.

GBST powers the Aegon, Novia and AJ Bell platforms.

A statement in the GBST accounts says: “GBST has invested heavily in the past few years to establish and develop an international business. That investment is starting to pay off in the UK with sales growing substantially. Revenue has grown to over A$22m despite the difficult economic environment in the UK.”

Finance and Technology Research Centre director Ian McKenna says: “As firms look to break with the past and launch new propositions, it is a natural progression to look at new technology. GBST is in a position to offer firms that and is taking advantage.”

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