Reuters promises jam tomorrow

THE long-running tale of falling revenues at information services Reuters will come to an end, chief executive Tom Glocer promised today but, as ever, he declined to say when.

With stock markets falling, takeover activity restricted to a few special situations and little in the global initial public offering pipeline beyond Google, he admitted that the enthusiasm he displayed back in May may have been a little premature.

'We did see a pull-back in June and when I go around and speak to our customers at all the major banks they are saying the same sort of things,' added Glocer.

Top-line recurring revenues fell by 13% in the first half to £1.09bn with the fall in the dollar - which covers 39% of sales - accounting for 6% of the fall. In the third quarter, Glocer believes, revenues will fall by about 5% with continuing gradual improvement in the final quarter.

At the bottom line, pre-tax profits of £136m, up from £87m, were well ahead of City forecasts with most of the extra coming from Reuters' draconian cost-cutting measures. The target for its 'Fast Forward' savings programme was raised from £220m to £230m by the end of this year.

Glocer said: 'At the mid-point of our three-year Fast Forward programme we are ahead of schedule. We are winning new business with our largest customers and our new product line-up is taking shape ... We remain dedicated to transforming this business.'

The group's new Trader system, aimed at City dealing desks, has been delayed until September by technical hitches.