Business

Newry software firm First Derivatives reports profits of £12.5m

First Derivatives is headquartered at Canal Quay in Newry
Gareth McKeown

NEWRY-based software firm First Derivatives has reported a 20 per cent growth in pre tax profits, rising to £12.5 million.

The financial technology company, which now employs over 1,750 staff, has seen a 30 per cent increase in revenue from £117 million to £151.7 million in the year ending February 27, 2017.

In a year of "strong progress" First Derivatives, whose head office is based at Canal Quay, reported a decrease in net debt, which fell from £15.1 million to £13.5 million in 12 months, while adjusted earnings (EBITDA) increased by 24 per cent to £28.8 million.

The positive figures are based upon strong growth in software revenue, up 47 per cent as a result of new contract wins and continued penetration of the existing customer base according to the company and further growth and progression in managed services and consulting.

Within the sofiware division, branded as Kx technology, FinTech revenue was up by 28 per cent to £117.4m, driven by contract wins, while MarTech earnings rose 39 per cent to £30.7 million.

First Derivatives chairman Seamus Keating reflected on a year of "strong progress".

“During the year we made strong progress on our strategic objectives, while delivering a solid financial performance.

Our increasing scale is leading to larger and longer-term managed services and consulting engagements and we are confident this trend will continue as we develop our service capabilities."

"We are engaged in numerous discussions across industries and believe our products and services are well placed competitively. Consequently we anticipate another year of strong growth," he added.

Chief executive Brian Conlon said it was another "monumental year" for the firm.

"We are making substantial investments in R&D, marketing and direct and indirect sales channels in order to bring our technology to new markets. Recent announcements relating to strategic partnerships and contract wins are evidence that the power of Kx has applications beyond its capital market beginnings," he said

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