Software firm sees opportunity in the changing workplace

THE CEO of Newry-based global analytics software business First Derivatives said he expects to see new opportunities in manufacturing as companies try to reduce the number of people on production lines.

“In places like manufacturing, I can see customers looking at their current facilities and trying to automate more and have less people on production lines,” Seamus Keating, CEO of First Derivatives, told the Irish Independent.

“One area is around health and safety and another around [limiting] business interruption. Our ability [is] to automate some of those production plants with the analytics to determine what changes need to be made in processes,” he said. “I think we will see opportunity there.”

His comments come as the company saw its profit before tax increase 9pc to £18.3m (€20.5m) in the 12 months to February.

Revenue for the period was also up 9pc to £237.8m (€266m), according to annual results from the group.

The company said it has seen “no material financial impact to date” from the coronavirus, however, it has seen a lengthening of sales cycles.

First Derivatives said it remains “too early” to determine the probable impact of this longer cycle on its fullyear performance.

In the short term, its high levels of repeat and recurring revenue provide some mitigation from the economic impact of the global pandemic.

“In the longer term, First Derivatives remains confident in its strategy and the growing demand for its world-class Kx streaming analytics from both potential customers and partners,” it said.

In the 12 months to February 29, software turnover increased by 13pc to £148.4m. The group said it experienced “significant” contact wins in its core fintech market.

Earlier this year, the company appointed Mr Keating as CEO following the untimely passing of its founder, Brian Conlon.

Donna Troy, chairman of First Derivatives, said: “The past year has been one of the most significant in the group’s history, having to cope with the sudden loss of our founder and CEO, Brian Conlon, and then the challenges posed by Covid-19.

“Against that backdrop, these results represent a period of solid execution.”

Shares in the company fell by 14.4pc yesterday to close at 2,465 pence (€27.68). However, Mr Keating said “the share price manages itself ”.

“The daily movement is not something you can spend too much time on,” he said.