First Derivatives profits and revenues up 20%

Profits up by 20% for the year so far at First Dervatives
Profits up by 20% for the year so far at First Dervatives

Newry based financial services and technology firm First Derivatives increased revenues and profits by 20% and 21% respectively in the first half of 2018 according to the firms latest accounts.

Revenue hit £105.6 million for the six months to August 31, up from £87.8m for the previous half, while pre-tax profits rose to £7.6m from £6.3m.

The firm said it enjoyed strong growth in software revenues, up 21%, with license revenue up 39% driven by increased demand for Kx technology across the client base

Continued strong demand within managed services and consulting activities saw revenue growth of 19%

High-profile, new client wins included Finland’s electricity transmission system operator Fingrid and the Canadian Securities Administrators.

The firm also completed the acquisition of US-based Kx Systems with agreement to buy the minority shareholdings in, taking 100% ownership by end June 2019.

“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,” said FD chairman Seamus Keating.

“This confidence drove an acceleration of our investment plans in H1, in response to new opportunities across the business.

“While the benefits from this investment will be received in future periods, the Group has delivered a strong first half.

First Derivatives was founded in 1996 by chief executive Brian Conlon. It employs 2,400 people globally and plans to recruit 1,000 over the next three years.

“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.”

Mr Keating said he expected full results for the year to end of February 2019 to be slightly ahead of current forecasts.