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First Derivatives have announced their full year financial results for the year ended 28 February 2021.

Despite the Covid-19 pandemic, revenue was virtually identical to Feb 2020 results at £237.9m compared to £237.8m in 2020. Gross profit also was steady at £101.0m compared to £101.1m in 2020.

First Derivatives HQ, Newry. Photograph: Columba O'Hare/ Newry.ie
First Derivatives HQ, Newry. Photograph: Columba O'Hare/ Newry.ie

Highlights

Overall the company delivered robust performance despite the impact of COVID-19, in line with market expectations.

The company continues to invest in technology, product and people, reflecting confidence in the business and the market opportunity.

Multiple new contracts were won in key target markets, with examples across automotive (Williams Racing), energy (major US gas and electricity utility), manufacturing (semiconductor manufacturer), telecoms (leading North American telco) and FinTech (MUFG).

Acceleration of growth strategy and change in group structure has seen the proposed renaming of the Group as FD Technologies plc, comprising three businesses – KX, First Derivative and MRP – to enable each brand to communicate its distinct value proposition for its respective market and maximize its growth opportunity

KX is at the heart of their propositions with their goal to enable KX to become the market-leading technology for real-time streaming analytics, which would represent a $39bn addressable market by 2025 growing at 30% per annum.

Seamus Keating, CEO of FD, commented: “Using streaming analytics to inform and automate operational decisions is one of the most important growth areas in technology today, and KX enables this for our customers. During the past year we have positioned the business to scale rapidly to address this opportunity, by accelerating our technology roadmap, strengthening our leadership, developing our commercial strategy and putting in place enhanced systems and processes to scale the Group. By increasing our investment in the business we unlock the potential for rapid growth and for KX to become a key part of tomorrow’s technology ecosystem.”

First Derivative, which comprises their managed services and consulting business plus elements of their software services revenue, will benefit from sharper focus on target markets where it has the greatest in-depth expertise, and which are areas of key focus for FD clients.

Current trading and outlook

The Board is providing guidance for the current financial year which reflects the improved momentum across the Group’s business units, as well as the cost impact of the investment to accelerate growth

The Board anticipates that revenue for the year will be in the range of £255m to £260m, with adjusted EBITDA in the range of £31m – £33m.

Donna Troy, Chairman of FD, commented: “Following a detailed review by the Board, informed by growing market opportunities resulting from the increasing capabilities of our technology, we have concluded that now is the time for targeted investment that will accelerate our growth and establish KX as a world-leading horizontal technology for realtime streaming analytics. We are excited to announce this acceleration of our strategy and look forward to delivering enhanced value for our customers and shareholders.”

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