First Derivatives says sales growth to £105.6m proves its strategy was right

THE chief operating officer of Newry plc First Derivatives has said interim results reporting sales growth of 20% to £105.6m have vindicated its strategy.

The business reported strong growth in sales of around 20% to £105.6m in interims for the six months ending August 31.

Adrian Toner, the chief operating officer, said the results vindicated the company’s approach after hedge fund Shadowfall critiqued its performance, leading to a slump in the share price.

“We are very pleased with this strong set of numbers which are ahead of market ex-

Strong growth: Adrian Toner

pectations and show profitable growth across all divisions, going to prove that we are delivering upon our strategic roadmap.”

The company employs nearly 600 people in Newry, including 184 new starts in a new managed services centre on the city’s Hill Street, and nearly 300 people in Belfast. It recently opened new offices at Ormeau Avenue, Belfast.

First Derivatives said software revenue was up 21%, with licence revenue up 39% as demand increased for its Kx technology.

Mr Toner said growth in software revenues was encouraging and said it had been spread across growth in the financial sector and vertical markets which the company had entered.

The company, which was founded by Brian Conlon, said there was also strong demand within managed services and consulting activities, resulting in revenue growth of 19%. Pre-tax profits were up 20% from £6.3m to £7.6m.

The company is one of the few Northern Ireland firms to be listed on the stock market, and features on the the Alternative Investment Market.

Mr Toner said the company had moved on since Shadowfall’s intervention.

“Hopefully these results will put to bed some of the comments, and we look forward to the share price continuing to rise.

“These things happen and are a feature of the capital markets. People are at liberty to say what they like.

“But there are analysts who are closer to the business and they understand that there is a demand for what we do.”

The firm has also announced plans to recruit 1,000 people over the next three years.

And he said that 308 graduates had started with the firm since March, with 26 new starts beginning work yesterday. “We have confidence that the second half will be as productive as the first.”

The company has applied its Kx technology to vertical markets including Formula 1, telecommunications and manufacturing.

But Mr Toner added: “We are only scratching the surface at this moment in time.”