Profits at First Derivatives up 86%

First Derivatives, the Newry-based provider of technology services, today reported an 86 per cent rise in pre-tax profits to £4.7 million (€5.9 million).

The company supplies technology packages to investment banks to more than 40 investment banks and hedge funds.

It said turnover in the year ending February 29th was up 36 per cent at £12.7 million and reported earnings per share of 23.3p, a rise of 56 per cent. It will pay a final dividend of 5.8 pence a share, bringing the total to 8.1 pence for the year.

The figures have been adjusted to reflect the impact of IFRS, which has been adopted since March 1st, 2007.

Despite the turmoil in the credit markets, 2007 saw strong demand from capital markets for its products, the company said. Over the period the number of employees rose from 89 to 118, the company said.

David Anderson, Chairman said after exceptional growth in the last year the outlook for the year ahead was for trading "inline with previous trends".

He said the pipeline of business from new and existing customers remained strong.

He said sales of First Derivatives' niche software products were modest with sales of four of its products to six financial institutions to date and that increase resources would be allocated to marketing these products.

First Derivatives also increased its stock of residential property to 32 last year with a book value of £16.8 million.
Twenty-two of the properties are in London with the remainder in New York. The company says it will continue to buy property in Lieu of paying for hotels and rented accommodation.

It uses these properties are used to accommodate staff on assignment in major financial centres and says their location in the City of London and Manhattan means the company is "relatively insulated from trends in the general property market".

First Derivatives listed on Dublin's IEX market last year.