Profits lift for Newry company

FIRST Derivatives – the Newry-based specialist technology company – has reported a 27% rise in full-year pre-tax profits, to £5.64 million (€6.56m).

The AIM and ISEQ ESM-listed company, which provides software support services to investment banks and hedge fund administrators, saw its turnover – for the 12 months to the end of February – jump by 45% to £25.48m and earnings per share grow by 16% to 25.8p.

EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 12% over the previous year to £7.25m and the value of net assets grew by 45% to just over £16.3m.

A final dividend of 2.75p has been proposed, meaning that the latest full-year dividend for shareholders of 9.5p represents a 6% improvement on the previous 12 months.

Chairman David Anderson said investment in the overall business, coupled with the three acquisitions made during the period – American firm Reference Data Factory, Australian company Hologram and the Dublin-based firm, Cognotec – has helped the firm, adding the trading performance remains “robust” in all divisions.

“We’re continuing to make a substantial investment in the development of the group to ensure it is positioned for both short and long-term benefits to shareholders. We’ve made a strong start to the current year and expect to be able to report further progress,” he added.

First Derivatives also announced yesterday that it has signed new contracts – worth over $1m a year – for its Delta software suite with three international customers: a leading unnamed British bank; a global investment bank; and a major North American-based hedge fund operator.

“These deals emphasise the quality of the Delta software and represent a significant return on the R&D investment we have made to date. These are the first in a number of significant deals anticipated to be signed in the next few months,” said First Derivatives’ chief executive Brian Conlon.