First Derivatives posts FY revenue rise

Source: First Derivatives

First Derivatives (AIM: FDP.L, ESM:FDP.I), a leading provider of software and consulting services to the capital markets industry, today announces its results for the twelve months ended 28 February 2013.

Financial Highlights







% change

Total revenue




Normalised EBITDA1




Normalised pre tax profit1




Adjusted earnings per share (pence) 1




Total dividend for year (pence per share)




- Revenue increased 22.5% to £56.5 million (2012: £46.1 million)
- Software revenues increased 11.4% to £15.0million (2012: £13.5million)
- Transactional and recurring revenue increased 36.2%
- Consultancy revenue increased by 27.1% to £41.5 million (2012: £32.6million)
- Normalised EBITDA(1) increased 11.8% to £11.6 million (2012: £10.3 million)
- Normalised pre-tax profit(1) increased by 6.7% to £7.8 million (2012: £7.3 million)
- Reported pre-tax profit of £6.2 million (2012: £6.9 million)
- Normalised basic earnings per share1 increased by 1.3% to 38.0p per share (2012: 37.5p)
- Final dividend of 8.40p per share, which together with interim dividend of 3.10p amounts to 11.50p for the year (2012: 11.15p)

1) In our pre close trading statement on 2 April 2013 we advised the company had made a provision for a potential bad debt relating to a legacy contract from the acquisition of Cognotec which was acquired in February 2010. As this is a non recurring item the increase in provision has been removed from normalised profit. In addition normalised profit does not include currency translation loss, acquisition costs and effects of associate's income.

Business Highlights

- Successfully penetrated surveillance market through significant Delta Stream contract with ASIC
- Delta Flow FX contracts signed with new brokers as well as with top tierJapanese bank
- Further sales of Delta products to banking market
- Well positioned to capitalise on Big Data opportunities
- 15 new Consultancy customers with increasing scale enabling bidding on ever larger projects
- Centre of Excellence launched as part of multi-year contract with major investment bank

David Anderson, Chairman of First Derivatives, commented: "This year has seen positive growth across the Groupositive growth across the Group's activities with total revenues up over 22.5%. The investment we have made in all the Group's activities has been to ensure that we build a robust organisation with a strong asset base and service offering to ensure future growth. With the improvements to the Delta suite, its increasingly visible revenue stream along with the positioning of our service offerings, we feel that the Group is well positioned to continue to grow. In addition to our traditional pipeline we have a strong pipeline of larger prospects arising from our push into the Big Data arena though given our revenue model these if successful are unlikely to have a material impact in our year to 2014. We remain excited by the potential of our software and consulting offerings and expect to be able to report further progress in the year to 28 February 2014."

Comments: (0)