First Derivatives set for greater growth on 50% profits surge

First Derivatives founder and chief executive Brian Conlon pictured, centre, with former First Minister Peter Robinson and Deputy First Minister Martin McGuinness
First Derivatives founder and chief executive Brian Conlon pictured, centre, with former First Minister Peter Robinson and Deputy First Minister Martin McGuinness

First Derivatives, the Newry based financial software developer and business consultancy has said it is poised for greater growth as it posted a 50% profits hike for the first half of 2016.

The firm, now established as a global player in financial markets around the world, reported pre-tax profits of £7 million, revenues of £72m compared to £54m in the first six months of 2015.

The business, founded by CEO Brian Conlon in 1996, has also taken on another 200 staff and now employs 1,700 in offices across the globe from which it sells its financial analytical software and consultancy services.

The firm reported strong growth with software revenue growing by 60% to £29.4m, while consulting revenues grew by 21% to £43m.

“We are pleased to report another period of strong growth for the first half of the Group’s financial year,” said chairman Seamus Keating.

“We delivered on our strategy in a number of important areas; winning larger, multi-year contracts in managed services and consulting, extending the capabilities of our software and, through additional investment in sales, marketing and people, laying the foundations for further growth.”

“We have made significant progress in extending our reach beyond financial services, deploying the proven strengths of our Kx software assets. The second half has started positively and the high visibility within both consulting and software gives the Board confidence in a continued strong performance for the full year.”

Commenting on the results Mr Conlon said there was growing evidence that the firm was becoming an increasingly strategic managed service and consulting partner for large investment banks, evidenced by the pipeline of new managed services assignments being discussed with clients.

“Our clients’ demonstrable confidence in our capabilities and appetite for our services allows us to continue to invest in the training and retention of our own staff as we prepare for continued growth.

“In summary, following a strong performance in the first half of our financial year and continued investmentin our technology and consulting offerings, the Group is well positioned for growth in the second half and beyond.”