First Derivatives posts impressive increase in revenues and profit for FY 2011
First Derivatives (AIM: FDP.L, ESM:FDP.I), a leading provider of software and consulting services to the capital markets industry, today announces its results for the twelve months ended 29 February 2012. First Derivatives offers sophisticated trading, back office and Bridge Bridge The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat Read this Term solutions to the capital markets, Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term included. More than two years ago FD purchased the ailing Cognotec - provider of one of the most sophisticated trading and connectivity solutions to the forex market.
Financial Highlights:
- Total revenue increased 25.4% to £46.1 million (2011: £36.7 million)
- Software license revenue increased 7.6% to £13.5 million (2011: £12.5 million)
- Transactional and recurring revenue increased 102.2% to 44% of software revenues (2011: 23%)
- Consultancy revenue increased by 34.7% to £32.6 million (2011: £24.2million)
- EBITDA increased 26.7% to £10.9 million (2011: £8.6 million)
- Normalised pre-tax profit increased by 25.0% to £7.3 million (2011: £5.9 million) after adjusting for associate and currency translation
- Pre-tax profit increased by 7.0% to £6.9 million (2011: £6.5 million)
- Normalised basic earnings per share increased by 32.2% to 37.5p per share (2011: 28.6p)
- Fully diluted earnings per share increased by 13.1% to 32.8p per share (2011: 29.0p)
- Final dividend of 8.15p per share, which together with interim dividend of 3.0p amounts to 11.15p for the year (2011: 10.15p)
Business Highlights:
- Growing customer base with software and services being provided to over 91 different investment banks, exchanges, brokers and hedge funds
- New initiatives to position consulting divisions for global trends
- Launch of Capital Markets Legal services stream
- Launch of Vendor Managed Services
- Launch of Data Management Team
- New software releases to enhance “Big Data” and FX offerings major wins achieved including Thomson Reuters, SGX, ANZ and Direct FX
- Significant investment into staff, headcount at year end 662 (2011 year end: 524)
- Earnings visibility improving as revenue contribution from transactional / recurring revenue increases
David Anderson, Chairman of First Derivatives commented:
“This year has seen continued strong growth across the Group’s activities with total revenues up over 25%. As the economic recovery has been taking a fragile hold we have continued to make a substantial investment in the development of all the group’s activities. The goal of this investment has been to ensure that we build a robust organisation with a strong asset base and service offering to ensure future growth. 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. With the improvements made to the Delta suite and its revenue stream and the positioning and improvements to our service offerings, we feel that the group is well positioned to continue to grow. We continue to have a strong pipeline of prospects and have made a strong start to the current year and expect to be able to report further progress in the year to 28 February 2013.”
First Derivatives (AIM: FDP.L, ESM:FDP.I), a leading provider of software and consulting services to the capital markets industry, today announces its results for the twelve months ended 29 February 2012. First Derivatives offers sophisticated trading, back office and Bridge Bridge The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat Read this Term solutions to the capital markets, Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term included. More than two years ago FD purchased the ailing Cognotec - provider of one of the most sophisticated trading and connectivity solutions to the forex market.
Financial Highlights:
- Total revenue increased 25.4% to £46.1 million (2011: £36.7 million)
- Software license revenue increased 7.6% to £13.5 million (2011: £12.5 million)
- Transactional and recurring revenue increased 102.2% to 44% of software revenues (2011: 23%)
- Consultancy revenue increased by 34.7% to £32.6 million (2011: £24.2million)
- EBITDA increased 26.7% to £10.9 million (2011: £8.6 million)
- Normalised pre-tax profit increased by 25.0% to £7.3 million (2011: £5.9 million) after adjusting for associate and currency translation
- Pre-tax profit increased by 7.0% to £6.9 million (2011: £6.5 million)
- Normalised basic earnings per share increased by 32.2% to 37.5p per share (2011: 28.6p)
- Fully diluted earnings per share increased by 13.1% to 32.8p per share (2011: 29.0p)
- Final dividend of 8.15p per share, which together with interim dividend of 3.0p amounts to 11.15p for the year (2011: 10.15p)
Business Highlights:
- Growing customer base with software and services being provided to over 91 different investment banks, exchanges, brokers and hedge funds
- New initiatives to position consulting divisions for global trends
- Launch of Capital Markets Legal services stream
- Launch of Vendor Managed Services
- Launch of Data Management Team
- New software releases to enhance “Big Data” and FX offerings major wins achieved including Thomson Reuters, SGX, ANZ and Direct FX
- Significant investment into staff, headcount at year end 662 (2011 year end: 524)
- Earnings visibility improving as revenue contribution from transactional / recurring revenue increases
David Anderson, Chairman of First Derivatives commented:
“This year has seen continued strong growth across the Group’s activities with total revenues up over 25%. As the economic recovery has been taking a fragile hold we have continued to make a substantial investment in the development of all the group’s activities. The goal of this investment has been to ensure that we build a robust organisation with a strong asset base and service offering to ensure future growth. 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. With the improvements made to the Delta suite and its revenue stream and the positioning and improvements to our service offerings, we feel that the group is well positioned to continue to grow. We continue to have a strong pipeline of prospects and have made a strong start to the current year and expect to be able to report further progress in the year to 28 February 2013.”