City Networks listed in The Sunday Times Profit Track 100

London 20 May 2001

City Networks was listed at number 36 in The Sunday Times PricewaterhouseCoopers Profit Track 100. This report is produced by Fast Track, an independent research and publishing company, with title sponsors PricewaterhouseCoopers, and was published in The Sunday Times on 20th May 2001. This annually produced league table is the second of its kind and identifies the UK’s unquoted companies whose profits have grown fastest over four years. The final 100 companies were selected from a database of about one million firms in the UK.

Profit growth was measured by compound annual growth rate (CAGR) over four financial years up to the latest filed accounts. Profits are defined as operating profits with director’s pay added back. Operating profit consists of a company’s profit before tax, interest, dividends and any exceptional items. Directors’ pay was added back because research shows that as much as 70% of profits are removed from private businesses each year in the form of director’s remuneration. Companies could not show a loss in any of the years under consideration and had to have a positive net worth in the final year. Research did not rely solely on financial data, more than 200 short-listed companies were contacted and most in the league table were visited for further research.

Sustainable growth had to be shown, i.e. companies had to be in business for at least four years from 1996 and show an increase in profits in their latest accounts. In the case of City Networks, this profit growth was 48%. Those companies that had grown by acquisition and not just organically also qualified. 

Corporate structure was also a consideration; businesses had to be independent because subsidiaries could receive funding from their parent companies. Those with quoted subsidiaries were disqualified from the table because funds could be raised through the stock market. In addition, companies did not qualify if their growth came as a result of changes in accounting methods that led to their figures being restated in restructured accounts.

City Networks Ltd (CNL) has been providing leading-edge software solutions to the Treasury, Securities and Derivatives markets since 1986, and has consistently exceeded its targets, both in growth of profit and industry profile. The company’s products and services are used by more than 500 international financial organisations across 37 countries, with over 1,900 systems installed. Head Office operations are based in London, with key sales/support offices in New York, Singapore, Hong Kong, Tokyo and Sydney.

Ends.

For more information, please contact:

Euro Banking Solutions:
Keith Blankley
Managing Director
Tel: + 971 4 3210011
Email: kblankley@eurobankingsolutions.com