First Derivatives to build on strong year

First Derivatives anticipates that its current year performance will moderately beat market forecasts.

The Newry, Co Down-based international firm offers tailored software products to hedgefund administrators and investment banks.

The specialist technology firm yesterday met previous expectations with its latest annual results, covering the 12 months to the end of February.

These showed a 19% rise in revenue to £83.2m (€114.6m) and a 120% jump in underlying pre-tax profits to £17.5m.

Adjusted fully diluted earnings per share were up by 13% to 38.8p, and the full-year dividend of 13.5p per share, marked an 11% annualised increase.

First Derivatives has its shares listed in London and Dublin. It has spent over €30m on three significantly expansionary acquisitions in the past couple of months and management said yesterday that these will provide a positive impact on current year trading.

The company added that its current year has seen a strong start, with good growth in its consultancy arm and contract wins in its software division.

Some analysts upped their current year outlooks on the back of yesterday’s strong figures; Investec raised its earnings per share outlook by 5%.

“The next scheduled data point will be interims in early November, when we expect some strong half-year numbers,” said Adam Lawson at London-based Panmure Gordon.

That firm has increased its 2016 earnings before interest, tax, depreciation and amortisation forecast from £21.6m to £22.3m.