Software firm on course for record profits

DUBLIN-listed financial services technology company, First Derivatives has said that it is on course to deliver increased profits for its current fiscal year after posting a record set of first-half figures.

The Newry-headquartered firm — which specialises in software support services for investment banks and hedge fund administrators — yesterday reported a 36.4% year-on-year increase in pre-tax profits, to£3.1 million (€3.4m), for the six months to the end of August.

Operating profits were up by 21.6% on the same period last year, at £3m, while earnings per share of 15.4p, represented a 42.6% year-on-year increase.

Group turnover for the period was up by 66.3% at £11.4m and the recommended interim dividend of 2.75p per share is 17% higher than last year’s half-way offer to shareholders (the company is listed on both the AIM in London and Dublin’s IEX market).

The company said that its trading performance remains “robust” and that sales of its products remain healthy.

Chairman David Anderson said: “We remain confident of achieving profits for the full year in line with market expectations.”

To this end, Mr Anderson added that the investments made in its structure, product portfolio and geographical presence, since last February, should result in an increase in First Derivatives’ levels of profitability “for the next financial year and beyond”.

“The group is trading strongly and continues to see increasing levels of revenue visibility,” he said.

With regard to international investment, First Derivatives has also announced a further $7.5m injection into US technology firm, Kx Systems — a move which increases the Northern Irish firm’s stake from 5% to 20%.

The two firms have had a partnership deal in place for the past 11 years and First Derivatives acts as Kx’s exclusive sales partner — in the financial services sector — in Ireland, Britain and North America.

The company said yesterday that the deal should be “marginally positive” with regard to its full-year earnings for its current year up to the end of next February.

“Given that we have worked closely with Kx for a number of years, this investment enhances our ability to exploit the synergies which now exist between our companies to their full potential,” First Derivatives chief executive, Brian Conlon, said.