Revenue, profit rise at First Derivatives in first half

Financial software and consultancy group First Derivatives said its revenue rose 44 per cent in the first half of the year as investment netted new customers.

Revenue increased to £53.8 million (€76 million) for the six months ending August 31st, while pretax profit rose 27 per cent to £4.6 million for the period.

The company said its ongoing investment in its software had paid off during the period under review, as it signed up new clients within financial services markets that fuelled and 87 per cent increase in software revenue.

Meanwhile, revenue at its consulting business was up 28 per cent.

First Derivatives invested £7.1 million in the acquisitions of Affinity Systems and ActivateClients, which it said had generated positive results in the digital marketing and utilities sectors.

"This was another period of strong progress across the group," chairman Seamus Keating said. "Although we remain at an early stage of full commercialisation of our software products we are pleased to report an impressive 87 per cent growth in software revenue as we continued to penetrate our key target markets in the period."

Mr Keating said the positive performance in the first half of its financial year has continued into the second half, with the group expecting to meet market expectations for the full year.