5th Nov 2014 10:22
LONDON (Alliance News) - First Derivatives PLC Wednesday said it is confident in meeting market expectations for the full year, as the capital markets software and consulting services provider reported a jump in first-half pretax profit and noted a strong start to the second half of the year.
In a statement, First Derivatives said it made a GBP3.7 million pretax profit in the six months ended August 31, compared with a GBP3.0 million pretax profit in the corresponding period last year.
Revenue rose by 9.1% to GBP37.5 million as an 11% fall in software sales to GBP9.8 million was more than offset by a 19% uplift in consulting revenue to GBP27.7 million.
"The high revenue visibility in our consulting division combined with the software deals we are working on or have signed during the first half of the year underpin our confidence in meeting market expectations for the full year. The second half has started strongly across the group, both in terms of business performance and growth in our sales pipeline," Chairman Seamus Keating said in a statement.
Conlon also said First Derivatives expects a boost to adjusted earnings in the current financial year from its deal last month to acquire a majority stake in big data vendor Kx Systems, with "greater impact" in the year to February 2016.
"In summary, the group is well positioned to deliver in the current year and beyond with numerous business development opportunities to accelerate our growth. We view the future with confidence," Keating added.
First Derivatives increased its interim dividend to 3.3 pence from 3.2p.
The company's shares were down 3.1% at 1,267.00 pence Wednesday morning.
By Samuel Agini; [email protected]; @samuelagini
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