Business

FD Technologies say growth strategy working despite reporting six month loss

FD Technologies has reported a three-fold increase in the number of subscription deals for its real-time data analytics business, KX.
FD Technologies has reported a three-fold increase in the number of subscription deals for its real-time data analytics business, KX. FD Technologies has reported a three-fold increase in the number of subscription deals for its real-time data analytics business, KX.

NEWRY-based FD Technologies has said the cost of implementing a new group strategy is behind a £1.6 million pre-tax loss recorded in the six months to August 31.

The company formerly known as First Derivatives announced a significant reorganisation of its structure in May 2021, dividing the group into three businesses: KX, First Derivative and MRP.

The group’s real-time data analytics business, KX, has seen significant investment in recent months.

FD Technologies said while its adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) was down 31 per cent on the same period in 2020, that was in line with expectations in the wake of the new strategy.

Most of its performance indicators are on target with the new accelerated growth strategy announced back in May.

Both KX and MRP are on track with growth targets, while First Derivative is ahead of its growth target.

Chief executive Seamus Keating said he was very encouraged by what he called “the increasing momentum across the business”, particularly with KX.

“The opportunity for KX to deliver continuous intelligence remains enormous, and we are excited by the traction we are achieving across industries.

“Our cloud-first platform, KX Insights, was launched during the period and we have already signed new enterprise customers who, importantly, are already getting value from their investment.”

Part of the group’s new strategy has resulted in a 52 per cent increase in the size of the KX ‘go-to-market’ team, contributing to a three-fold increase in the number of KX subscription deals.

“The outlook across our businesses is positive, with each business unit expected to meet or exceed its full year growth target,” added the CEO.

“We are particularly excited by the growing evidence that KX Insights can make real-time decision-making easy to implement for organisations.

“With its increasing ease of use, deployment freedom and interoperability, backed by our investment in leadership and go-to-market capability, we see KX as strongly positioned to build a market-leading position in continuous intelligence.”