Bottom Line: Minnow with future

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The Independent Online
HIGH ACTIVITY in the derivatives markets has helped software minnow Rolfe and Nolan to make record annual profits of pounds 1.6m, up from pounds 1.2m, and lift its dividend 11 per cent to 8p.

Although tiny, the group is a leading international futures and options computer bureau and software specialist. It provides back-office derivatives systems, but is developing a technically advanced product, Lighthouse, that will provide a complete system for administering trade in derivatives and managing risk.

Last September the group signed a pounds 2.5m contract with Credit Suisse to install Lighthouse for the bank in Zurich, London and New York.

Rolfe and Nolan's European bureau service processed record volumes, and its recurring revenues from processing and support services in Europe rose 17 per cent to pounds 6.9m - enough to cover operating costs.

The US business, acquired in April 1993, made a loss of pounds 967,000, up from pounds 414,000.

Forecasts of doubled profits this year cut a historical p/e of 50 to a more palatable prospective 25 at 328p, up 10p.

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