First Derivatives reports pretax profits of £5.6m

FIRST DERIVATIVES, Northern Ireland’s only listed software and consulting company, has reported strong pretax profits of £5.6 million (€6.5 million) for the 12 months to February 2010.

The Newry-based London- and Dublin-listed company’s pretax profits jumped by 27 per cent, while turnover grew by 45 per cent in the same period to £25.4 million.

Earnings before interest, taxes, depreciation and amortisation grew by 12 per cent to £7.2 million in the 12 months to February.

The company, which sells software products and consulting services to the capital markets sector, said a combination of “price pressure” and “long-term strategic decisions” in the last financial year had resulted in a reduction in its gross operating margin from 51 per cent to 41 per cent.

Brian Conlon, chief executive and founder of the company, said its balance sheet remained strong with cash balances of up to £1.7 million.

First Derivatives’ net assets at the end of February were more than £16.3 million, which reflects a year-on-year jump of 45 per cent on its assets base.