First Derivatives shares jump on strong interims

Shares in Irish specialist technology company First Derivatives jumped by over 6% yesterday on the Newry-based firm publishing a strong set of interim results and expressing confidence for a strong full-year.

The London and Dublin-listed company, which provides tailored software solutions for the financial services sector, but expanded to other sectors, reported a pre-tax profit of £7m (€7.75m) for the six months to end of August and said it is on course for a good showing for the 12 months to the end of February.

“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,” said chairman Seamus Keating.

“We have made significant progress in extending our reach beyond financial services... The second half has started well and the high visibility within both consulting and software gives the board confidence in a continued strong performance for the full-year.”

Yesterday’s results showed a 34% year-on-year rise in first-half revenue to £72.4m and a 20% rise in the interim dividend to 6p per share.

The group said the weakening of sterling since June’s Brexit vote has benefited its operating results and its wide geographical presence — more than 60% of its revenue is generated outside of the UK — will help shield against negative impacts.

Goodbody Stockbrokers yesterday suggested the bias to forecasts, regarding First Derivatives, “remains on the upside” and retained its ‘buy’ recommendation on the stock.