Revenues more visible at First Derivatives

19th Oct 2009 17:11

Investment banking and derivatives software supplier First Derivatives says that revenue visibility is improving.Newry-based First Derivatives reported a 66% rise in revenues to £11.4m, while pre-tax profits improved from £2.24m to £3.06m. Investment in growing the business and the acquisition of an Australian company led to a sharp rise in admin expenses. This investment should benefit long-term revenues. The interim dividend is being increased from 2.35p to 2.75p a share. First Derivatives also increased its stake in Kx Systems Inc from 5% to 20% for $7.5m (£4.7m) in cash and shares. The company purchased existing shares from co-founder and chief executive Janet Lustgarten, who receives enough shares - at a price of 244p each - to give her 3.64% of First Derivatives. Kx, which was founded in 1993, sells the high-performance and time series database kdb+. The business is profitable. First Derivatives has been working with Kx since 1998. First Derivatives' net debt was £12.3m at the end of August 2009 and there is potential deferred consideration of up to £6.2m payable. That is before the £3.4m of cash paid for the increased Kx stake.