Newry-based First Derivatives grows turnover past £87m

First Derivatives is to become the anchor tenant at the Weaving Works building in Belfast
First Derivatives is to become the anchor tenant at the Weaving Works building in Belfast

NEWRY technology giant First Derivatives has reported a 21 per cent rise in turnover in the first half of the year, growing to a hefty £87 million.

The company's interim results for six months ending August 31 show strong growth across the board, driven by a flourishing software business.

Revenue for the year to date rose to £87.8 million from £72.4 million for the same period in 2016, while profit before tax jumped by 13 per cent from £10.1 million to £11.4 million. The firm's net debt also fell from £13.5 million in the first half of last year to £13.1 million in 2017.

The healthy figures are built upon a burgeoning software section, which grew revenue by almost a third to £52.2 million, with recurring software revenue up by 44 per cent from the same period last year to £19.6 million.

Meanwhile the managed services and consulting divisions reported revenue growth of 8 per cent to £35.6 million

FinTech (Financial Technology) and Martech (Marketing Technology) revenue also grew from last year by 18 per cent to £66.8 million and 30 per cent to £18.3 million respectively.

Within the business an additional 386 graduates have been hired in the calendar year so far, a 66 per cent rise in the numbers recorded in the first half of 2016.

The company further outlined how it has signed new 'initial' contracts in multiple new sectors due to the positive start to the second half of 2017, expects the full year financial performance to be slightly ahead of the board’s expectations.

Chairman of First Derivatives, Seamus Keating expressed his delight at the latest financial figures:

“We have continued to position the Group to target several high-value addressable markets, while maintaining our financial discipline."

"Through our conversations with existing and potential customers and partners, we remain convinced that demand for ultra-high performance analytics capability will continue to grow and that Kx technology leads this market in terms of its performance and lower total cost of ownership."

"Our managed services and consulting activities are also in high demand and we are addressing this through record levels of recruitment of high-calibre graduates. We have signed a number of high value contracts in the first half and there is momentum behind our commercial discussions across the Group. We therefore anticipate a strong full year financial performance, slightly ahead of the Board’s expectations," Mr Keating added.

First Derivatives, whose head office is based at Canal Quay, employs more than 1,750 staff worldwide and in August confirmed it is to become the anchor tenant for the Weaving Works building on Ormeau Avenue, as part of major plans to grow Belfast operations.

The firm will join Caffé Nero and the Barking Dog restaurant at the mixed development.