Profits up at First Derivatives

Newry-based First Derivatives saw its turnover and profit rise for the first six months of 2009, despite a more difficult market.

The company, which provides software and support services to the investment banking and derivatives industries, said turnover grew 66.3 per cent to £11.4 million, while operating profit increased 21.6 per cent to £3 million in the six months to August 31st 2009.  Profits before tax were up 36.4 per cent to £3.1 million.

First Derivatives said its trading performance was "robust", with an increase in its activity in the capital markets consulting sector. The firm's in-house Delta software division was also significantly developed during the period.

"During the period we have committed substantial investment into First Derivatives and its structure to increase our global coverage and develop our range of in-house Delta software products," said chairman David Anderson.

"These initiatives are expected to result in an increase in our levels of profitability for the next financial year and beyond, ensuring continued advancement for our shareholders. The group is trading strongly and continues to see increasing levels of revenue visibility."

During the period, gross margins also rose, increasing from 46.2 per cent in the same period in 2008 to 43.8 per cent in 2009.

The firm posted an increased earnings per share of 15.4p, a 42 per cent rise on 2008's 10.8p.

The company said it was confident it would achieve profits for the full year in line with market expectations.