First Derivatives on a roll

25th May 2011 09:18

First Derivatives, which supplies software and consulting services to banks and hedge funds, posted higher profits in the year to 28 February as the company continues developing new products and winning clients.Pre-tax profits were up by 15% from the previous year at £6.5m, on revenues that soared by 44% to £36.74m. Software sales at the company, which is based in Newry, Northern Ireland, but operates globally, grew by 104% to £12.51m, while consultancy sales climbed by 25.2% to £24.2m.Chief financial officer Graham Ferguson told ShareCast that the move towards software sales was beneficial for margins as consultancy requires greater investment in staff. The shift towards software will continue, but consultancy will remain important, he said. Gross margins declined slightly due to investment in software, but are likely to increase as more contracts are signed, he added.First Derivatives intends to continue with "soft product launches" in the first half of the current year followed by sustained marketing in the second half. "We continue to have a strong pipeline of prospects and are pleased with how the group is now positioned to further penetrate its target markets," the company said. "We have made a strong start to the current year and expect to be able to report further progress in the year to 29 February 2012."