Interim results for the six months ended 31 August 2010

27 October 2010

First Derivatives (AIM: FDP.L, IEX:GYQ.I), a leading provider of software and consulting services to global investment banks and hedge funds, today announces its results for the six months ended 31 August 2010.

Financial Highlights

• Turnover £17.7m (2009: £11.4m) +56.2%
• EBITDA £3.9m (2009: £3.4m) +16%
• Operating profit £3.1m (2009: £3.0m) +3.3%
• Pre-tax profit £3.2m (2009: £3.1m) +5.9%
• Earnings per share 15.6p (2009: 15.4p) +1.3%
• Net Assets £21.7m (2009: £12.5m) +74.4%
• Interim dividend of 2.9p per share (2009: 2.75p) +5.2%


Business Highlights

• Sales of our Delta software range up by 158%
• Software sold into new markets including the Exchanges market and the data management market
• Launch of the Group’s first SaaS product in the FX market
• Capital Markets Consulting sales up by 26%
• Significant progress in integrating the acquisition of Cognotec into the Group

David Anderson, Chairman of First Derivatives commented:

“Over the last twenty-four months the Group has been in a period of transformation, investing in R+D and infrastructure to allow it to offer software products as well as services to its client base and ensure it has a strong platform to facilitate global expansion. This major investment program has been implemented without impacting profitability and we have maintained the growth momentum of previous years.

“We plan to continue investing, not only in building a global sales team and recruiting R+D staff, but also in the physical infrastructure required to deliver a Software as a Service capability. During the period under review the Group successfully launched one such product, our Delta eFX platform and we now have seven clients trading and billions of dollars of transactions per day are being processed through our data centres. Our software is now sold on a transactional basis and on an annualised licence model which helps increase revenue visibility and improves planning. The pipeline for our Delta range of software products is encouraging and with the continued expansion of our consulting division we remain confident of achieving profits for the year in line with market expectations.”

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