First Derivatives revenue up 9% in H1 interims

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 six months ended 31 August 2014.

Financial Highlights

  • Revenue £37.5m (2013: £34.4m)                                    +9%
  • EBITDA £6.8m (2013: £5.8m)                                         +17%
  • Profit before tax £3.7m (2013: £3.0m)                             +24
  • Adjusted Profit before tax* £4.5m (2013: £3.8m)             +18
  • Reported Diluted EPS 13.5p (2013: 12.4p)                       +9%
  • Adjusted* Diluted EPS 16.5p (2013: 15.7p)                     +5%
  • Interim dividend 3.3p per share (2013: 3.2p)                   +3%
  • Net cash from operating activities £3.3m (2013: £3.2m)    +2%
  • Net debt £9.1m (2013: £15.0m) 
  • Performance remains in line with current market expectations for the full year


*Adjusted for amortisation of acquired intangibles, share based payments, profit on disposal of property, finance translation income/charges and associated taxation impact.


Business Highlights

  • Investment in sales capacity delivering further revenue growth of +9%
  • Strong growth in consulting +19% brings more new customers to the Group
  • Growing momentum in Market Surveillance; contract wins during the period with Yieldbroker and afterwards with IEX and strong pipeline of additional opportunities
  • Continued investment in software products with new clients for Delta Flow, Delta Stream and Delta Algo 
  • Further commitment from Invest Northern Ireland of £3.9m to support up to 484 new jobs


Post Period-end Highlight

Purchase of majority stake in Kx Systems opens up range of new opportunities in Big Fast Data.

Seamus Keating, Chairman of First Derivatives, commented: “The high revenue visibility in our consulting division combined with the software deals we are working on or have signed during the first half of the year underpin our confidence in meeting market expectations for the full year. The second half has started strongly across the Group, both in terms of business performance and growth in our sales pipeline. We expect a modest enhancement to adjusted earnings in the current year from the Kx Systems transaction, with greater impact in the year to February 2016, despite increasing investment in Kx to maximise its growth potential.

In summary, the Group is well positioned to deliver in the current year and beyond with numerous business development opportunities to accelerate our growth. We view the future with confidence.”

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