Profit falls 10pc at Newry-based First Derivatives
Profit before tax at Newry-based First Derivatives fell 10pc to £6.3m (€7.2m) in the six months to 31 August, according to the interim results from the company.
The fall in profits was primarily driven by acquisition costs and losses from foreign currency translations.
Adjusted profit before tax was £11.4m, an increase of 13pc.
Despite the fall in profits, revenue was up 21pc to £87.8m during the six month period, while the company’s adjusted earnings before interest, taxation, depreciation, and amortisation rose by 19pc to £16.1m.
The strong growth in revenue was found across the company, with software revenue growth up 32pc to £52.2m, Fintech revenue up 18pc to £66.8m, and MarTech revenue up 30pc to £18.3m.
During the period, the company signed initial contracts in multiple new sectors including sensor data management, telecoms, healthcare and retail.
Just yesterday the company announced that its Kx technology has been selected by Red Bull Racing to analyse sensor data from its Formula 1 vehicles.
In announcing the results the company said that its full year financial performance is expected to be slightly ahead of the board's expectations.
"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," Seamus Keating, chairman of First Derivatives, said.
In May this year First Derivatives announced that it would take on 400 graduates this year, in what is understood to be the biggest programme of its kind on the island of Ireland.