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Profits before tax up 7pc at financial software firm Derivatives

Pre-tax profits at Northern Ireland-based software firm First Derivatives climbed 7pc to £6.9m (€8.6m) during its last financial year as revenue rose more than 25pc to £46.1m (€57.6m).

Releasing full-year results yesterday, First Derivatives chairman David Anderson said that the company has a "healthy pipeline" of prospects.

First Derivatives develops and sells software that's used in the financial services industry.

While its software sales were 7.6pc higher in the year, at £13.5m (€16.8m), Mr Anderson said that the increase didn't reflect the health of other aspects of the business. Transactional and recurring revenues were up over 102pc.

Mr Anderson acknowledged that the technical challenges faced in the capital markets are extensive.

"This complexity, in combination with continually increasing data volumes and the subsequent IT processing requirements, create many challenges for the industry," he said, adding that First Derivatives' technology platform is specifically engineered to meet those challenges.

The firm's consulting revenue rose nearly 35pc to £32.6m (€40.7m) during the year. Mr Anderson said that the company has continued to make "substantial investment" in the development of all its activities.

"We expect the market in coming years will continue to be challenging as the full effects of budget constraints, regulation and globalisation continue to impinge our customers," he said.

Irish Independent