Avaloq said it is getting ready to open itself to investors. The Swiss banking software firm said its full-year net profit rose sharply following a 10 percent boost in revenue.
Zurich-based Avaloq said earnings before interest, tax, depreciation and amoritization, or EBITDA, stood at 82 million Swiss francs, from 58 million francs previously.
As a privately-held firm, Avaloq isn't required to release any information of its results or health, said it is doing to further itself towards an eventual listing.
«As reflected in our enhanced financial transparency, we want to also make further progress on our path to capital-market readiness,» founder and Chief Executive Francisco Fernandez said in a statement.
Revenue Climbs
The firm has always left open what form of capital market exit it would opt for, but repeatedly said it would aim for 1 billion francs in revenue before it did so.
Full-year revenue climbed to 533 million francs, from 485 million last year, Avaloq said. The year was marked by investing for growth: the firm is spending money to making outsourcing business a key revenue contributor for the firm, develop new fintech products and build an open platform, and begin targeting external asset managers, a new market segment.
Fernandez and the firm have battled speculation in recent months that it could be forced into sale after spreading itself too thin on projects and as a strategy to expand its outsourcing business falters.
Raiffeisen on Track
Software firms generally finance projects themselves, which can tie up double-digit million franc sums until the project is billed. Financial resources in particular: Raiffeisen had to step in financially just over one year ago, purchasing 10 percent of Avaloq’s treasury shares for an undisclosed price.
On Monday, Avaloq said it had net cash of 62 million, and cash on hand of 63 million.
The firm is in the midst of the biggest project in its history with the migration of Swiss bank Raiffeisen’s IT into a new Avaloq system – a project which Fernandez has admitted soaks up considerable resources. On Monday, Avaloq said the project «remains on track».
