FD Technologies said revenue rose in the year to the end of February as the company saw significant strategic progress.
The company said revenue for the year was £80.7 million (€95.6 million), a 2 per cent rise year on year.
However, the company reported an operating loss of £23.4 million, widening from £15.6 million a year earlier, with an adjusted Earnings before interest, tax, depreciation and amortisation of £6.5 million.
In October last year, the company agreed to sell its First Derivatives division to US software company EPAM for £230 million and divesting MRP, leaving leave FD Technologies to focus on KX, another arm of the group, as its sole continuing operation.
During the second half of the financial year, KX continued to perform well, delivering bookings growth for the fiscal year at the top end of it guidance range with £18 million annual contract value. That was a 33 per cent rise on the same period last year, when the figure was £13.5 million.
Annual recurring revenue rose 13 per cent to £81.8 million during the year, a strategic milestone
“As these results demonstrate, momentum is accelerating in KX bookings and ARR growth, and the business is on course to deliver sustainable operating leverage over the long term, with cash EBITDA reaching breakeven in FY27,” chief executive Seamus Keating said.
“Following the completion of the disposal of First Derivative for an enterprise value of £230 million in December 2024, we returned £120 million to shareholders via a tender offer in January 2025, reflecting our commitment to maintaining an efficient balance sheet and maximising shareholder value.”
The company has also agreed a takeover deal that will see US private equity fund TA pay £24.50 a share for FD Technologies, valuing the company at £570 million.
“TA has significant experience supporting in high-growth global software businesses, and we believe it is a suitable and appropriate partner for our employees, customers, and other stakeholders,” Mr Keating said.
The company has a “robust pipeline” for the coming financial year, and plans to invest in expanding its customer reach in core sectors, including the financial services sector, boosting innovation, and exploring new markets.
“With accelerating ARR growth and better-than-expected operating leverage, KX delivered a strong performance based on good ongoing execution,” Mr Keating said. “Our focus for FY26 is to deliver efficient growth and demonstrate progress in delivering the significant operating leverage that is a feature of our business over the long term. We will prioritise our investments to accelerate deployment, time to value and ease of use, further simplifying our product model and enhancing sales productivity.”
The company said it expects ARR growth of at least 20 per cent in the coming financial year.
