Revenues jump 39% at First Derivatives

FIRST DERIVATIVES has posted a 39 per cent jump in full year revenues to £17.5 million (€20 million) but a slight fall in pre-tax profits because of losses on currency translation.

The Newry-based London AIM and Dublin IEX listed company reported pre-tax profits before currency adjustments of £5.3 million for the 12 months ended February 28th, 2009.

But a loss of £922,000 on currency adjustments as a result of translating the company’s dollar loans reduced final pre-tax profits to £4.4 million.

Comparable results show First Derivatives reported full year pre-tax profits of £4.7 million in 2008. The Northern Ireland company, which provides software and consulting services to the capital markets, delivered strong earnings against the backdrop of the global economic downturn.

EBITDA was up 16 per cent year on year to £6.447 million while the balance sheet shows cash balances of £1,299,000.

Brian Conlon, chief executive of First Derivatives, said the latest results reflect 13 years of “continuous growth” by the company. “The last 18 months has witnessed an unprecedented period of uncertainty and upheaval in the capital markets. Many of the organisations in our target market have failed or merged and have suffered unprecedented trading losses.”

He said First Derivatives had provided services last year to 48 different investment banks and hedge funds. According to Mr Conlon, London and New York remain the primary centre of the company’s business. The board has recommended a final dividend of 6.65 pence per share – a 15 per cent increase on last year.