Outlook remains healthy

FY13 was a buoyant year for GFT Group, as it benefited from strong demand in its solutions business, GFT. The solutions business grew 46% organically in Q4, up from 30% in Q3 and 21% in Q2, with growth driven by strong demand from investment banks as customers increasingly invest in new projects for growth. There was strong growth in the UK and Germany while GFT Italy (the rebranded Sempla, which was acquired early in Q3) gave an additional boost to revenues and has helped to lift the group's adjusted operating margins. emagine, the group's resourcing business, had a challenging year, but is showing signs of stabilising. In our view the 11x FY15e P/E and 3.2% yield look attractive given the potential to leverage market growth internationally and increase operating margins.