First Derivatives 'confident of growth prospects' amid high demand

Irish financial technology outfit First Derivatives (FD) achieved revenue and profit growth in the first half of the year after license revenue shot up, the company reported on Tuesday.

Over the six months ended 31 August, revenue increased organically by 20% compared to the same period last year, reaching £105.6m, driving a 20% jump in profit before tax to £7.6m.

Software revenue was up 21% as license revenue jumped 39%, led by increased demand for the company’s Kx data analysis software.

Chairman Seamus Keating said: "Our confidence in the growth prospects and the long-term potential of FD continues to increase, underpinned by demand for our Kx technology across multiple industries and our domain knowledge and growing reputation in managed services and consulting. This confidence drove an acceleration of our investment plans in H1, in response to new opportunities across the business."

Following the strong showing over the period, the AIM traded company increased its interim dividend by 10% to 7.7p.

Net debt increased from £16.2m to £24.2m over the period, while cash and cash equivalents increased to £13m from £12.4m at the same point the year before.

"The pace of major contract wins across the business, together with our high levels of repeat and recurring revenue provide confidence and position the group well to continue achieving strong growth. We expect to deliver revenue and adjusted EBITDA slightly ahead of consensus forecasts for the year to 28 February 2019," said Keating.

First Derivatives’ shares were up 6.77% at 3,470.00p at 0832 GMT.