First Derivatives reports record results, upgrades expectations for current year

2nd Jun 2015 11:39

First Derivatives (FD) shares performed strongly on Tuesday morning after the group unveiled record full-year results and upgraded its expectations for the current financial year.Buoyed by a strong second half performance from both its consulting and software activities, the technology group posted pre-tax profit of £17.5m, up from £7.9m a year earlier.Turnover for the year jumped 19% from £69.9m to £83.2m, thanks in part to continued investment in software products with new clients.During the year, the company made a number of key acquisitions, including that of Prelytix and a majority stake in Kx Systems, which has opened up a range of new opportunities in Big Fast Data and expanded its presence in the marketing technology sector.The group reported a good start to the new financial year and said another year of strong growth was expected, moderately ahead of current consensus market expectations, thanks to good growth in consultancy and a number of contract wins in software.Chairman Seamus Keating said: "This was a very successful year for FD, with the purchase of a majority stake in Kx Systems enabling the group to broaden its strategy. The subsequent investment across the business, including three strategic acquisitions in 2015, positions FD as a leading player in big fast data across multiple vertical markets."This has been achieved while maintaining a strong focus on current trading, with a strong second half performance from both our consulting and software activities enabling the group to report record results for 2015 and upgrade expectations for the current financial year."We will continue to invest to maximise the growth potential of the business and view the future with confidence."The board has recommended a final dividend of 10.20p per share, giving a total dividend for the year of 13.50p per share, an increase of 10.7% compared to the prior year.