Interim results for the six months ended 31 August 2016

1 November 2016

First Derivatives plc
(“FD”, the “Company” or the “Group”)
Interim results for the six months ended 31 August 2016

FD (AIM:FDP.L, ESM:FDP.I) announces its results for the six months ended 31 August 2016.

Financial highlights

  • Revenue £72.4m (H1 2016: £53.8m) +34%
  • Adjusted* EBITDA £13.6m (H1 2016: £10.8m) +26%
  • Profit before tax £7.0m (H1 2016: £4.6m) +52%
  • Adjusted** profit before tax £10.1m (H1 2016: £7.6m) +33%
  • Reported diluted EPS 19.4p (H1 2016: 13.9p) +39%
  • Adjusted** diluted EPS 29.0p (H1 2016: 23.9p) +21%
  • Interim dividend 6.0p per share (H1 2016: 5.0p) +20%
  • Net debt £16.3m (FY 2016: £15.1m)

*Adjusted for share-based payments and acquisition costs.
**Adjusted for amortisation of acquired intangible assets, share-based payments, acquisition costs, foreign currency translation income (and associated taxation impact for EPS).

Business highlights

  • Strong growth across key industry segments contributing to overall growth of 34%.
  • Managed services and consulting (“consulting”) revenue growth of 21% to £43.0m, driven by full year impact of increased consultant numbers and a number of managed services contract wins.
  • Software revenue growth of 60% to £29.4m, with recurring license revenue up 45% to £13.6m.
  • Further investment across the business, including a number of key strategic appointments, in response to market opportunities.
  • Marketing of software under the Kx brand well received assisting in strengthening market awareness.
  • Building momentum across the Group’s activities with a strong pipeline of opportunities in multiple industry segments.

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

For further information please contact:

First Derivatives plc
+44 (0)28 3025 2242

Brian Conlon, Chief Executive Officer
Graham Ferguson, Chief Financial Officer
Ian Mitchell, Head of Investor Relations

Investec Bank plc (Nominated Adviser and Broker)
+44 (0)20 7597 4000

Dominic Emery
Carlton Nelson
Sebastian Lawrence

Goodbody (ESM Adviser and Broker)
+353 1 667 0420

Linda Hickey
Finbarr Griffin

FTI Consulting
+44 (0)20 3727 1000

Matt Dixon / Dwight Burden / Antonia Gray

About FD
FD is a global technology provider with 20 years of experience. The Group’s Kx technology is used by some of the world’s largest finance, technology and energy institutions. FD employs over 1,700 people worldwide and has operations in London, New York, Stockholm, Singapore, Hong Kong, Tokyo, Sydney, Palo Alto, Toronto, Philadelphia, Dublin, Belfast and its headquarters in Newry.