6th Nov 2018 09:26
LONDON (Alliance News) - Trading software developer First Derivatives PLC hiked its interim dividend Tuesday on the back of a strong earnings performance, as it continued to invest for growth.
For the six months ended August, pretax profit increased 21% to GBP7.6 million from GBP6.3 million the year prior. This was after revenue rose 20% to GBP105.6 million from GBP87.8 million the year before.
"Our confidence in the growth prospects and the long-term potential of FD continues to increase, underpinned by demand for our Kx technology across multiple industries and our domain knowledge and growing reputation in managed services and consulting," First Derivatives Chief Executive Seamus Keating said.
First Derivatives proposed a 7.7 pence per share interim dividend, up 10% from the 7.0p paid the year prior.
"This confidence drove an acceleration of our investment plans in the first half, in response to new opportunities across the business. While the benefits from this investment will be received in future periods, the group has delivered a strong first half," Keating continued.
During the period, profit performance was held back by a sharp rise in sales & marketing costs to GBP15.8 million from GBP12.0 million the year prior. Administrative expenses also grew - through more modestly - to GBP18.7 million from GBP16.7 million the year before.
"The pace of major contract wins across the business, together with our high levels of repeat and recurring revenue provide confidence and position the group well to continue achieving strong growth," Keating added.
First Derivatives expects full year revenue and earnings before interest, taxes, depreciation and amortisation to be "slightly" ahead of consensus forecasts. According to company-compiled figures, analysts expects adjusted Ebitda of GBP38.5 million on revenue of GBP213.0 million for the year ended February 2019.
For the year ended February 2018, First Derivatives generated GBP34.1 million adjusted Ebitda on revenue of GBP186.0 million. Pretax profit stood at GBP12.1 million.
Shares in First Derivatives were 4.6% higher at 3,400.00 pence on Tuesday.
Related Shares:
FD Technologies