Web Site : http://www.finobj.com/

Financial Objects is an international supplier of software solutions to the banking, wealth management and energy sectors.

Banking - Financial Objects provides innovative solutions for the retail and wholesale banking sectors
( http://www.finobj.com/our_solutions/banking_solutions.php )

Wealth Management - Financial Objects is a leading developer and supplier of software solutions to the investment community
( http://www.finobj.com/our_solutions/wealth_management_solutions.php )

Energy energycredit is Financial Objects market leading enterprise-wide energy credit risk management solution
( http://www.finobj.com/our_solutions/energy_solutions.php )


Broker Forecasts : (EVO Buy rating)

2007 PTP 2.8m
2007 EPS 6.2p
2007 DIV 1.2p

2008 PTP 3.2m
2008 EPS 7.0p
2008 DIV 1.4p


Major Shareholders :

Slater Investments Ltd = 10.7%
Paul Fullagar (Director) = 10.6%
BlackRock Investment Mgt. = 8.1%
Roger Foster = 6.2%
Gartmore Investment = 5.4%
Rathbones = 3.8%
Third Advance Value Realisation Company = 3.8%


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Another earlier write up :

http://www.cambridge-news.co.uk/business/columnists/2007/07/24/dab2bc6d-33ca-49cb-a295-1b97d23332a2.lpf

Private Punter
IT IS often the case, that stocks building up a head of steam, or possessing good momentum are well worth following. Such a chance could well be beckoning in relation to the shares of this weeks subject, a company by the name of Financial Objects. Although the stock has enjoyed a good run over the last twelve months, jumping from 40p to 75p a recent retraction to the current 62p looks to be a good entry point to me.
While being in the software and computer services sector is typically a highly competitive arena, Financial Objects has already demonstrated its ability to deliver and appears set continue in the right direction.
Although to date, much of the growth that has ignited the shares has been fuelled from acquisitions, importantly there has been some solid organic growth to complement this. One the business front, the company is focused on three core markets, made up of Banking, Energy and Wealth Management. Having been set up as recently as 1995 it is the banking market that was the initial target sector and still makes up the majority of sales. In those early days, the company correctly envisaged the future of banking evolving into more internet-based business and set about developing and producing software solutions and services to meet the future market. As a result, it now has a robust business led by products such as activebank which serves both the retail and wholesale Banking Markets. The products serve a wide global market along with clients that include Abbey Life, Bloomberg and Commercial Union, importantly they meet the ever stringent and changing regulations. While the Banking market has been the main target market and enjoys strong repeat revenue, it is the companies other operations which are now fuelling the growth and thus driving the share price. Here, the Energy market is served by providing risk management products and has been boosted by the acquisition last year of Raft International. That business was acquired via a mix of cash and shares which valued Raft at 4m, that would appear to have been a decent purchase as it has already bedded in well. In fact, the energy team and business is growing rapidly and also boasts some big name clients including Shell and American Electric Power. Prior to the purchase of Raft, Financial Objects also acquired another listed company for 5.5m, in the shape of Wealth Management Software Group. Although that company had been struggling, like Raft it has slotted in well and provides products aimed at Pension providers, Offshore Trusts along with what has been the booming property investment market. Although this arm currently makes up less than 14% of the company turnover, the last set of results anticipated strong growth in the coming years. As for those Preliminary results, which were delivered back in March and covered last year, they made good reading. Turnover was up a solid 43% with operating profit doubling to 2.3m, while the Company announced a return to paying dividends. Along with that good news came the announcement that the sales pipeline was strong, new business had been won and there is a handy 4m in cash on the balance sheet. Broker Evolution Securities has a Buy stance on the shares and forecasts 2007 profits of 2.8m rising to 3.2m and EPS of 7p next year. That puts the shares on a forward PER of circa 9, considerably less than the software sector average of 19. While there are some large Institutional shareholders on the register, it is the name of Slater Investments that interests me. Headed by Jim Slater's son Mark it boasts more than 11% of the company.

For base reference after the last move up just now :

L2 is 2 v 1 @59/63 (Only KBC on the offer at 63p)


On Line Limits are :

BUY 10K @ 62.2p

SELL 25K @ 60.25p


And interim results are due tomorrow (Wed 5th September 2007)

For those that have not seen them, the March 2007 Research Notes (Evolution and Edison) can be downloaded or viewed from the following web folder :

http://www.esnips.com/web/PPOtherStuff


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http://www.investegate.co.uk/Article.aspx?id=200709050701483093D

Financial Objects PLC
05 September 2007
Financial Objects plc

Interim results for the six months to 30 June 2007

Financial Objects plc, an international supplier of software solutions for the
banking, wealth management and energy sectors, reports strong growth in revenue and profit.

2007 2006
000 000 Growth
Revenue 10,645 9,378 14%
Operating profit* 1,418 964 47%
Profit before taxation 1,273 872 46%
Basic earnings per share 2.8p 2.1p 33%
Adjusted earnings per share** 3.3p 2.4p 38%


* excluding amortisation of acquired intangible assets
** excluding income tax and amortisation of acquired intangible assets

Within these results, the Group has adopted IFRS reporting for the first time. The restatement of the 2006 comparatives is shown in note 9.

Highlights for the six months ended June 2007:

Continued sales growth, up 14%
Operating profit margin up to 13% (2006: 10%)
Strong operating cash flow of 1.0 million (2006: negative 0.4 million)100
Encouraging number of new client wins


Commenting on the results, Paul Fullagar, Chairman said:

'In our March statement we highlighted a number of new contracts signed within Wealth Management and Energy. This success has been maintained, resulting in a high level of organic sales growth within these two divisions. Operating margins across the Group have now risen to 13%, and operating cash generation remains strong. We are now focused on maintaining this momentum, with the strengthened management team looking for growth both organically and by acquisition.'

Have started following this stock with a view to purchase. Certainly all the fundamentals look appealing, and the company looks very undervalued. Very surprised to see the sp slide to 49.5p, and can't see any reason apart from the general market sentiment to the Financial Sector, even though Financial objects operate in software.

The latest interims look very encouraging, so hopefully when markets calm down a little I will take advantage of unfair rating.

Couldn't resist any longer, just brought in at 47p, seems far too cheap. Nearly all transactions are buys today, so fingers crossed hopefully the start of a turnaround.

Announcement of a new contract win today - see below

Financial Objects announces new contract win in Wealth Management division

Sand Aire licences activebank Wealth Manager


London, 15 October 2007 - Financial Objects plc, an international supplier of
software solutions for the banking, wealth management and energy sectors, (AIM:
FIO), is pleased to announce that it has won a contract to implement its wealth
management software with Sand Aire, a UK-based multi-client family office
specialising in strategic wealth management for families, trusts and charities.


activebank Wealth Manager will be used by Sand Aire to enhance its portfolio
management and client reporting capabilities. The software provides a scalable,
flexible and cost-effective platform that will support Sand Aire's future growth
plans.


Commenting on this contract win, Gary Linieres, Managing Director, Wealth
Management Division, Financial Objects stated:


'We are delighted to announce this deal which was won due to our industry
expertise, leading software and proven track record. We look forward to working
with Sand Aire and providing them with our high quality service.'


Paul Reynolds, Director, Wealth Management, Sand Aire added:

'Having a robust but flexible system is essential to meet the needs of our
clients. We believe that Financial Objects can deliver this and add to our
unique client proposition.'

The sp gained 1p today to 48.5, hopefully it can start to recover from now. It's strange how the price drifted from 60ish to 46, with no reason that I could make out. I have just re-checked the last interims and finals plus all news, and it all looks very positive to me. Also the fundamentals all look very strong.

The sp has steadied now, but I can't help thinking that they are at a real bargain level looking at a 6 to 12 month view. At 80p they would still be on a forward pe of 12.7.

Does anyone have any thoughts to why sentiment has been against the company.

Association with the "finance sector"........

No doubt it is.......... But banks and wealth sector will still need the software, and Energy sector seems to be holding up very well. Hopefully this is a classic contrarian investment, we will see.

Noticed 2.1m shares sold today at 45p 5% of company, should be an announcement in the next few days. The sp has held firm, which at least is a positive sign.

Another news release today which has seen the sp firm 1p to 48.5. See below.

LONDON (Thomson Financial) - Financial Objects PLC said it is planning to announce further wealth management customer wins in the coming months.

Recent contract wins include Concorde Bank, Sand Aire and Hansabank and this momentum is set to continue in 2008, the software company said in a statement.

The company said it has appointed Mark Measham as operations director and Brent Randall as business strategy director of its wealth management division to exploit the accelerating demand for high net worth investment services.

Good start today with sp ticking up 2.5 to 51p, on strong buying.

Financial Objects PLC
24 October 2007

24 October 2007

Financial Objects PLC (the 'Company')

Directors' Share Dealing

The Company was informed on 23 October 2007 that on 23 October 2007 Paul
Fullagar, Chairman of the Company, bought 2,000,000 ordinary shares of 2p each
in the Company ('Ordinary Shares'), representing 4.50 percent of the Company's
issued ordinary share capital. Further to this, Mr Karim Peermohamed, CEO, and
Mr Peter Youngs, FD, have both bought 50,000 Ordinary Shares each representing
0.11 percent of the Company's issued ordinary share capital. All of the
aforementioned Ordinary Shares were bought from Roger Foster, the previous
Chairman of the Company, at 45p. Roger Foster has confirmed in writing to the
Board of the Company that he has no current intention to dispose of any further
Ordinary Shares.

Following these transactions the interests of Mr Fullagar, Mr Peermohamed, Mr
Youngs and Mr Foster are as follows:-

Number of shares % of Issued Ordinary Share Capital

Mr Fullagar 6,800,000 15.3%
Mr Peermohamed 152,000 0.34%
Mr Youngs 150,000 0.34%
Mr Foster 308,273(1) 0.69%


(1): Of Mr Foster's 308,273 Ordinary Shares, 151,522 Ordinary Shares are held
within his pension scheme

Commenting, Paul Fullagar, Chairman, said:

'This demonstrates the confidence the directors have in the company and its
prospects. Following the recent strengthening of the management team, I believe
the company is well positioned to build on recent successes and to enhance
shareholder value over the next few years.'

http://moneyam.uk-wire.com/cgi-bin/articles/200710241652473121G.html

Read the above RNS.

Paul Fullagar, Chairman of the Company, bought 2,000,000 shares.

Mr Karim Peermohamed, CEO, and
Mr Peter Youngs, FD, have both bought 50,000 shares each.

All of the aforementioned Ordinary Shares were bought from Roger Foster, the previous Chairman of the Company, at 45p. Roger Foster has confirmed in writing to the Board of the Company that he has no current intention to dispose of any further Ordinary Shares.

So that's the seller sorted out, in fact he only has 308,000 shares remaining, half of which are in his pension scheme.

affc21 Thank you for the information, the city seems to like the news with sp up 5.5p now to 54p. This could be the start of a rerating now. imho.

Still holding these, they seem to have found a support level around 47-48, we even had a 1p rise yesterday. Hopefully when finals reported in March we will hear of some more contract wins. They did report two contract wins in energy sector, and good progress report with statoilhydro who were very pleased with software.

Trading update

The Board of Financial Objects plc, an international supplier of software
solutions to the banking, wealth management and energy sectors, (AIM: FIO), is
pleased to announce that, following the completion of its financial year ended
31 December 2007, it expects to report an operating profit ahead of market
expectations.

The Company is scheduled to announce preliminary results on 10 March.

The price increased 4p to 52.5p on the trading update. We could see EPS of 6.5p which would give a PE of 8. Then hopefully a re-rating.

Results today which look very solid even with the current slowdown. See below.

Software supplier Financial Objects PLC said full year pretax profit rose 40 pct helped by higher profit margins and said it is hiking its final dividend by 50 pct to 1.5 pence per share.

The software supplier said pretax profit for the full year to Dec 31 2007 rose to 2.8 mln stg compared with 2 mln stg in the year ago period on a revenue increase of 7 pct to 21.2 mln stg.

Financial Objects said it expects to make further progress in 2008 and will continue to look for complementary buys, which will offer synergies and are earnings enhancing.