First Derivatives (FDP) enjoyed strong revenue growth across the board for the year to February 2018, buoyed by excellent top-line contributions from both the software side of the business as well as combined managed services and consulting division. Respectively, these grew by 27 per cent to £112m and 17 per cent to £74.1m.
Sales growth has also been evenly distributed along industry lines. Fintech – FDP’s most mature market – saw sales rise 22 per cent to £143m, thanks to the continued appeal of its ‘Kx’ technology for investment banks, which are keen to get as much value out of the data they generate as possible. That's particularly important following the introduction of new regulations including the MiFID II banking reforms.
FDP’s push into other markets, such as sensor analytics, automotive and gaming, shows some promise, with revenues filed under 'other markets' up 41 per cent in the period to £5m. The group will be hoping to replicate the momentum in the telecoms sector, following December's acquisition of network specialist Telconomics.
Further down the P&L, adjusted cash profits rose 19 per cent to £34.1m, while the associated margin dipped one percentage point to 18 per cent. Understandable, given the technology group’s step up in research and development investment in the period.
Investec forecasts pre-tax profits of £16.1m and EPS of 43.9p for the year to February 2019 (from £12.1m and 37.8p in FY2018).
| FIRST DERIVATIVES (FDP) | ||||
| ORD PRICE: | 4,160p | MARKET VALUE: | £1.07bn | |
| TOUCH: | 4,140-4,190p | 12-MONTH HIGH: | 4,440p | LOW: 2,700p |
| DIVIDEND YIELD: | 0.6% | PE RATIO: | 103 | |
| NET ASSET VALUE: | 537p* | NET DEBT: | 11.7% | |
| Year to 28 Feb | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 70.0 | 7.9 | 34.4 | 12.2 |
| 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 |
| % change | +23 | -3 | +10 | +20 |
| Ex-div: | 21 Jun | |||
| Payment: | 20 Jul | |||
| *Includes intangible assets of £150m, or 583p a share | ||||
