Profit jumps 21pc at Newry-based First Derivatives
Global analytics software firm First Derivatives has seen its gross profit jump 21pc to £43.9m (€50m) in the six months to 31 August.
Profit before tax was up 20pc to £7.6m (€8.7m), while the company also reported a 20pc increase in revenue to £105.6m (€121m) in the six month period, according to a trading update.
Adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) increased 12pc to £18.1m.
The performance was driven by strong growth in software revenue, up 21pc, with license revenue up 39pc on the back of increased demand for Kx technology across its client base, the company said.
There was also strong demand within its managed services and consulting activities resulting in revenue growth of 19pc.
Seamus Keating, Chairman of FD, commented: "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."
"This confidence drove an acceleration of our investment plans in H1, 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."
Mr Keating added that the pace of "major" contact wins across the business, together with its "high levels of repeat and recurring revenue provide confidence and position the group well to continue achieving strong growth."
The group expects to deliver revenue and adjusted EBITDA slightly ahead of consensus forecasts for the financial year end 28 February 2019.
First Derivatives believes consensus revenue and adjusted EBITDA forecasts to be £213m and £38.5m respectively.