Norkom reports 37% increase in first half revenues

Financial software maker Norkom says it will benefit from a move by global regulators to tighten their supervision of financial institutions following the credit crisis.

The Irish listed company this morning announced a 37 per cent increase in revenues and a 30 per cent increase in earnings before interest, tax and write-offs for the six months to the end of September.

Norkom chief executive Paul Kerley said the company's short-term growth trajectory had been affected by "disruptive merger and demerger activity" among financial institutions in recent months.

Uncertainty in the sector had meant key banks had postponed making decisions about new systems, while some banks had been slower to make payments.

But moves to make anti-fraud procedures mandatory rather than discretionary following a rise in suspicious activity and financial crime among financial institutions would work in Norkom's favour, he added.

Financial institutions would increasingly look to independent companies to provide anti-fraud technology in order to reduce their compliance costs, he said.

During the half-year to the end of September, Norkom increased its gross profits by 29 per cent to €14.8 million, although there was a similar rise in operating costs.

Mr Kerley said the company had diversified its risk through a varied roster of clients and broad geographical footprint, but he added that Norkom was not immune to the impact of the global financial crisis.