Newry firm First Derivatives grows turnover by 23% to £186m

First Derivatives headquarters in Newry. The company has grown revenue to £186 million according to its latest financial results
Gareth McKeown

NEWRY technology giant First Derivatives has swelled company revenue to £186 million in the 21st consecutive year of double-digit growth.

In its latest financial results for the year ending February 28, First Derivatives has announced turnover growth of 23 per cent from £151.7m to £186m.

The company's EBITDA (earnings before interest, taxes, depreciation, and amortization) also grew by 19 per cent from £28.8m to £34.1m, while profit after tax increased by 21 per cent £19.5m this year. Profit before tax fell marginally from £12.5m to £12.1m.

The strong growth in the business was boosted by a flourishing software business, which experienced a 27 per cent increase in revenue as a result of new contract wins and progression within existing customer markets.

The firm's managed services and consulting business saw an uplift of 17 per cent over the year, while both FinTech (financial technology) and Martech (marketing technology) revenue grew by 22 per cent to £142.9m and 24 per cent to £38.2m respectively.

Staff numbers also increased significantly at the Canal Quay-headquartered firm, with the group now employing more than 2,200 people, up from roughly 1,750 at the same time last year.

Other company highlights over the year include the implementation and ongoing support of a third-party system for a New York-based bank,

representing one of the largest contracts in its history, as well as high-profile client wins including a Fortune 500 manufacturing company, a FTSE 100 gaming

company and Aston Martin-Red Bull Racing.

First Derivatives chairman, Seamus Keating reflected on another positive set of financial results.

“This has been another year where we have combined organic growth with selective investment in the business to realise the enormous market opportunity

available to First Derivatives," he said.

"Prompted by strong demand from our clients, we have continued to penetrate our markets enabling us to deliver our 21st consecutive year of double-digit revenue growth. Our ability to capitalise on the investments we have made and the scale of our addressable software market provides us the potential for continued strong growth in future years. While we will continue to invest to stay at the forefront of our field, much has already been done to support our ambitious plans

and our current structure is sufficient to achieve significant growth."

Looking ahead First Derivatives chief executive, Brian Conlon is confident of further growth in the future.

"The new financial year has started well, with a healthy pipeline of new business opportunities and strong demand generated by our increasing strategic importance to clients. In particular, we continue to capitalise on the investments we have made in recent years in R&D, sales and marketing and expanding our channels to market."

"Our solid base of repeat and recurring revenue coupled with the strength of our pipeline provides confidence in our outlook and we remain confident that we are on track to deliver further for shareholders," he added.

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