First Derivatives profits up but expects tough year ahead

28th May 2012 09:35

Capital markets software and consultancy provider, First Derivatives, has seen a big jump in pre-tax profits but warns regulation could make life difficult in the years ahead.Total revenues for the 12 months to the end of March were £46.1m, up 25.4% on the prior year. Normalised pre-tax profits (after adjusting for currency translation) increased by 25.0% to £7.3m compared to £5.9m in 2011. Earnings per share increased by 40.2% to 34.2p per share (2011: 24.4p).Software licence revenue grew to £13.5m,up 7.6% on 2010/2011 while consultancy revenue increased by 34.7% to £32.6m.The group's Chairman, David Anderson noted the improving numbers but sounded a note of caution: "We expect the market in coming years will continue to be challenging as the full effects of budget constraints, regulation and globalisation continue to impinge our customers. He added though: "We continue to have a strong pipeline of prospects and have made a strong start to the current year and expect to be able to report further progress in the year to 28 February 2013."Shares in First Derivatives were up 2.4% at 09:42BS