First Derivatives’ (FDP) top-line growth for the year to February 2019 was underpinned by a 17 per cent improvement within 'FinTech' (financial technology) – its largest business area – to £167m. FinTech’s sales straddle two areas: software and managed services. In the former category, revenues increased by 17 per cent to £80.2m – buoyed by demand for the group’s flagship data analytics technology ‘Kx’. It also signed “significant” new contracts with customers including the securities regulator for Canada’s provinces and territories.
In the latter category, FinTech’s revenues also climbed 17 per cent, reaching £86.5m. Here, growth stemmed from “ongoing demand” across multiple capital markets services. The division also benefited from international expansion, especially in North America.
Sales for ‘MarTech’ (marketing technology) rose 8 per cent to £41.4m – bolstered by a 25 per cent increase in subscription revenues. Meanwhile, software revenue from ‘other markets’ escalated by 85 per cent to £9.3m – signalling progress on FDP’s plan to “establish Kx in other markets that are challenged by data volumes and velocity”.
Consensus forecasts are for adjusted EPS of 87p for FY2020, against 83p in FY2019.
| FIRST DERIVATIVES (FDP) | ||||
| ORD PRICE: | 3,110p | MARKET VALUE: | £815m | |
| TOUCH: | 3,105-3,120p | 12-MONTH HIGH: | 4,800p | LOW: 2,010p |
| DIVIDEND YIELD: | 0.9% | PE RATIO: | 61 | |
| NET ASSET VALUE: | 545p* | NET DEBT: | 12% | |
| Year to 28 Feb | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 83.0 | 17.5 | 77.2 | 13.5 |
| 2016 | 117 | 10.4 | 33.3 | 17.0 |
| 2017 | 152 | 12.5 | 36.7 | 20.0 |
| 2018 | 186 | 12.1 | 40.4 | 24.0 |
| 2019 | 217 | 16.7 | 50.9 | 27.0 |
| % change | +17 | +38 | +26 | +13 |
| Ex-div: | 20 Jun | |||
| Payment: | 19 Jul | |||
| *Includes intangible assets of £152m, or 580p a share | ||||
