TIDMFDP
RNS Number : 9280N
First Derivatives PLC
01 November 2016
1 November 2016
First Derivatives plc
("FD", the "Company" or the "Group")
Interim results for the six months ended 31 August 2016
FD (AIM:FDP.L, ESM:FDP.I) announces its results for the six
months ended 31 August 2016.
Financial highlights
* Revenue GBP72.4m (H1 2016: GBP53.8m) +34%
* Adjusted* EBITDA GBP13.6m (H1 2016: GBP10.8m) +26%
* Profit before tax GBP7.0m (H1 2016: GBP4.6m) +52%
* Adjusted** profit before tax GBP10.1m (H1 2016:
GBP7.6m) +33%
* Reported diluted EPS 19.4p (H1 2016: 13.9p) +39%
* Adjusted** diluted EPS 29.0p (H1 2016: 23.9p) +21%
* Interim dividend 6.0p per share (H1 2016: 5.0p) +20%
* Net debt GBP16.3m (FY 2016: GBP15.1m)
*Adjusted for share-based payments and acquisition costs.
**Adjusted for amortisation of acquired intangible assets,
share-based payments, acquisition costs, foreign currency
translation income (and associated taxation impact for EPS).
Business highlights
-- Strong growth across key industry segments contributing to overall growth of 34%.
-- Managed services and consulting ("consulting") revenue growth
of 21% to GBP43.0m, driven by full year impact of increased
consultant numbers and a number of managed services contract
wins.
-- Software revenue growth of 60% to GBP29.4m, with recurring
license revenue up 45% to GBP13.6m.
-- Further investment across the business, including a number of
key strategic appointments, in response to market
opportunities.
-- Marketing of software under the Kx brand well received
assisting in strengthening market awareness.
-- Building momentum across the Group's activities with a strong
pipeline of opportunities in multiple industry segments.
Seamus Keating, Chairman of FD, commented: "We are pleased to
report another period of strong growth for the first half of the
Group's financial year. We delivered on our strategy in a number of
important areas; winning larger, multi-year contracts in managed
services and consulting, extending the capabilities of our software
and, through additional investment in sales, marketing and people,
laying the foundations for further growth.
We have made significant progress in extending our reach beyond
financial services, deploying the proven strengths of our Kx
software assets. The second half has started positively and the
high visibility within both consulting and software gives the Board
confidence in a continued strong performance for the full
year."
For further information please contact:
First Derivatives plc +44 (0)28 3025 2242
Brian Conlon, Chief Executive www.firstderivatives.com
Officer
Graham Ferguson, Chief Financial
Officer
Ian Mitchell, Head of Investor
Relations
Investec Bank plc
(Nominated Adviser and Broker)
Dominic Emery
Carlton Nelson
Sebastian Lawrence +44 (0)20 7597 4000
Goodbody
(ESM Adviser and Broker)
Linda Hickey
Finbarr Griffin +353 1 667 0420
FTI Consulting
Matt Dixon / Dwight Burden /
Antonia Gray +44 (0)20 3727 1000
About FD
FD is a global technology provider with 20 years of experience.
The Group's Kx technology is used by some of the world's largest
finance, technology and energy institutions. FD employs over 1,700
people worldwide and has operations in London, New York, Stockholm,
Singapore, Hong Kong, Tokyo, Sydney, Palo Alto, Toronto,
Philadelphia, Dublin, Belfast and its headquarters in Newry.
For further information, please visit
www.firstderivatives.com
CHAIRMAN'S STATEMENT
We are pleased to report another period of strong growth for the
first half of the Group's financial year. In the six months ended
31 August 2016 revenue increased by 34% to GBP72.4m and adjusted
EBITDA was 26% ahead of last year at GBP13.6m. We delivered on our
strategy in a number of important areas; winning larger, multi-year
contracts in managed services and consulting, extending the
capabilities of our software and, through additional investment in
sales, marketing and people, laying the foundations for further
growth.
We are particularly pleased with our software business where
revenue increased by 60% to GBP29.4m. As we operate a predominantly
subscription-based license model, this growth reflects the
successful implementation of contracts signed last year. We have
continued to win contracts with new and existing clients during the
first half and the financial benefits of these will be recognised
in future periods.
We continue to focus strongly on the financial services market
which is the source of the majority of our software revenue, while
advancing our strategy to penetrate other vertical markets,
primarily marketing technology and utilities. We are also actively
working with potential clients to explore use cases for our
technology in other arenas such as telecoms and the Internet of
Things.
Within this set of results, we disclose revenue by market
sector, evidencing our progress outside financial services. Most
significant is marketing technology which largely comprises our
acquisition of Prelytix in 2015 and the Market Resource Partners
business acquired in 2009. These assets have been combined and
underpinned with our Kx platform to provide an end-to-end
predictive analytics and lead management service platform with
clients such as Brocade, Cisco, HP and Fujitsu.
This is an example of our intellectual property, both technology
and service capability combining to deliver a unique high-value
customer solution. Whereas we historically saw our revenue streams
from consulting or software, now the market seeks solutions such as
those underpinned by our Kx platform, or consulting and managed
services based on third party products such as Murex or Calypso. In
future reporting periods we expect to report these two business
lines across our key market sectors.
Consulting revenues again grew strongly, rising by 21% to
GBP43.0m. As our scale and range of capabilities grow, we continue
to see an increase in the size and strategic importance of the
engagements we undertake with clients. We are increasingly viewed
as a strategic partner in the delivery of IT strategies for
clients, further assisting our revenue visibility and offering the
potential to cross-sell software products as part of a wider
business solution.
To support the growth plans of the Group we have worked on
enhancing our recruitment and training programmes. Overall,
headcount now stands at more than 1,700 (H1 2016: more than 1,500).
This continued investment in our staff gives us a strong platform
for future growth.
The Group continues to generate positive operating cash flow and
the Board has again decided to increase the interim dividend, by
20% to 6.00p per share (H1 2016: 5.00p per share). This will be
paid on 5 December 2016 to those shareholders on the register on 11
November 2016.
With regard to Brexit, it is not possible to comment on any
potential impact given the lack of clarity at this stage. The
weakness of sterling since the referendum has been a net benefit to
the Group's operating results, as outlined in the financial review.
Our business is well geographically diversified with over sixty
percent of revenue generated outside the UK. Looking ahead, FD has
consistently demonstrated its ability to adapt and grow
successfully as business conditions evolve and we are confident in
our ability to assist our clients through whatever transitional
change may be required when the implications of Brexit become
clear.
In summary, FD has delivered a strong first half performance
while continuing to invest across the business to take advantage of
the Group's many growth opportunities. The second half has started
positively and the high visibility within both consulting and
software gives the Board confidence in a continued strong
performance for the full year.
Seamus Keating
Chairman
CHIEF EXECUTIVE'S STATEMENT
I am pleased to report continued growth during the first half of
the Company's financial year. In the six months ended 31 August
2016 we increased our revenue by 34% to GBP72.4m, from GBP53.8m in
the corresponding period, while adjusted EBITDA was GBP13.6m
compared to GBP10.8m in the prior period, representing 26% growth.
The scale of the opportunity married with the strength of our
business activities in software and consulting gives us confidence
in our ability to continue our growth trajectory in future
periods.
Business review
First Derivatives combines domain knowledge with best in breed
technology to provide a premium offering to our customers. We work
extensively with a range of third party technology providers but
the revenue share associated with our own proprietary technology is
increasing dramatically.
Kx Technology
Our software products, branded under Kx technology, are the
market leader in Fast Big Data, the ultra-high-speed processing of
real-time, streaming and historical data. Kx enables the capture,
analysis and visualisation of data within a single platform,
providing significant performance benefits while requiring less
computing infrastructure and thereby lowering total cost of
ownership.
During the period we unified our software under the brand of Kx,
with the accompanying strapline - "It's about time". Applications
of our technology are branded as "Kx for ..." depending on the
application or vertical market - for example, Kx for Surveillance,
Kx for Sensors, Kx for Pharma and so on. The component parts of the
platform are described by their functionality and comprise Analyst
for Kx, Stream for Kx, Control for Kx and Dashboards for Kx. We
launched a new website in September and have secured a sponsorship
deal with Porsche - another brand associated with quality,
precision engineering and speed. This strengthened branding and
simplified messaging is already resonating with existing and
potential clients.
FinTech
The vast majority of our software revenue continues to be
generated within financial services, for applications such as
market surveillance, trading, regulatory reporting, transaction
cost analysis and algorithmic testing. Our software is typically
licensed on a subscription basis and can either be deployed or
hosted in multi-tenanted solutions. During the first half of our
financial year we successfully implemented the contract wins
achieved in the second half of last year. We also won a number of
larger contracts within financial services and signed agreements to
partner with Thomson Reuters and a pan-European trading venue for
the provision of managed solutions to their customers.
These new wins have added to the Group's enviable marquee client
base in financial services. This demanding customer base has meant
that our technology has been tried and tested in the world's most
demanding commercial data environments. We are now using the
increasing number of successful implementations of Kx in financial
services as reference sites to allow us to expand its use in both
existing and new clients.
One of the drivers of our success has been the ability to
deliver complete solutions for our clients, marrying our Kx
technology platform with our consulting delivery capabilities. The
ability to provide a complete technology solution, incorporating
data ingestion, data management, data interrogation and
visualisation is attractive to our customer base, as is the
capability to do so through a managed service.
General awareness of data challenges in markets outside
financial services has increased significantly in recent years as
businesses are coming under siege from growing data volumes and
increasing levels of high velocity streaming data. The ability to
deal with these data challenges, "Fast Big Data", is becoming
increasingly important to user organisations, as evidenced both
through our own conversations with potential clients in vertical
markets and through industry analyst comment.
As part of our strategy to extend the use of our technology we
have been exploring a range of markets that are being challenged by
growing data volumes and increasing levels of streaming data. This
has been recognised in a recent report by industry analysts Bloor,
"Kx is already a proven leader in capital markets and financial
trading, and has successfully enhanced its offering to the point
where it is now positioned as a significant player in the wider
streaming analytics market, and is well set to capitalise on sensor
analytics and the Internet of Things."
MarTech
An example of our success in extending Kx's addressable market
is in digital marketing, where our revenues have grown strongly in
recent periods. We have developed a compelling technology focused
offering, utilising the capabilities of Kx technology and provided
as a managed service to drive sales for our customers. The
technology helps identify buyer intent data by analysing internet
traffic and combining it with multiple other non-proprietary,
proprietary, firmographic data and customer data sources. We employ
predictive analytics across these data sets to identify prospective
buyers and then use interactive software and additional marketing
services to enable our clients to sell more effectively to their
target markets. This is a unique unified end-to-end solution with a
large addressable market that provides high returns on investment
for clients. The scale of the data analytics challenge is such that
we believe that there is no competing technology that could
generate results in a time and cost efficient manner that would
enable it to compete with our solution.
This cloud-based solution is used by many of the world's leading
technology companies and we are seeking to broaden its base into
other markets such as finance and healthcare. The core business
model is subscription-based with the ability to expand the managed
service offering to meet each client's needs. We have had numerous
client wins during the period including several global technology
firms and we are pleased with the progress we have made in this
market.
Other Verticals
In addition to digital marketing we are also making progress in
entering new markets, utilising the performance advantages of Kx to
deliver real competitive advantage for the analysis of data in
other industries. During the period we signed a partnership
agreement with Utilismart, a provider of meter data management and
analytics to more than 100 utilities in North America. Under this
agreement Kx technology will become the hosted infrastructure
platform for Utilismart's smart grid applications, replacing a
third party database provider and enabling Utilismart to rapidly
scale the number of clients it can handle. Development work to
deliver this solution is advancing in line with an anticipated Q1
2017 launch and there has been significant interest from potential
utility customers.
This is just one example of the commercial impact Kx's superior
performance capabilities can have on markets outside financial
services. We continue to believe that the unique combination of the
key advantages of our technology, our global presence, our hosting
capability, our data science credentials, the maturity of our
platform and our ability to deal with vast amounts of data leaves
us strongly placed to continue to succeed in financial markets as
well as other verticals where applications and solutions around
Fast Big Data are required.
Managed Services and Consulting - Other Technologies
FD is one of the leading capital markets managed and
professional services companies in the world, with ongoing
contracts with the majority of the largest global investment banks.
We provide implementation, support and development services across
a range of third party technologies and asset classes including
credit, interest rate, foreign exchange, equity, cash and
derivatives markets.
Our growing scale and reputation, allied to our unique
capabilities in combining domain knowledge in capital markets with
our experience of the key technologies deployed within it, continue
to differentiate our services. These differentiators, along with
our reputation for delivery, continue to allow us to scale our
business through continued expansion of our customer base. In
particular we seek to increase our strategic importance to clients
through key account management programmes that focus on the breadth
of our capabilities. This approach has resulted in recent successes
in our near-shore managed services offering, which has increased
revenue visibility through growth in our recurring revenue.
A key competitive advantage continues to be the strength of our
recruitment and training programmes, with more than 250 graduates
joining FD this calendar year to date. Our internal Capital Markets
Training Programme continues to provide them with domain and
technology skills and is increasingly well understood and
appreciated by clients as a guarantee of quality.
Management and personnel
The Group now employs more than 1,700 people, up from more than
1,500 people at the same time last year. We continue to attract
highly-qualified talent and achieve high retention rates. I would
like to pay tribute to all FD employees for their hard work,
talent, flexibility and dedication in what has been another period
of strong growth for the Group.
Summary
The first half was a period of building momentum across our
business, as described in the review of activities. We have also
made good progress in sales and marketing and software development
and have continued to invest across the business. During the period
we rebranded our technology under the Kx name. We believe these
initiatives leave us strongly placed for future growth.
We remain confident that our software has significant
competitive advantages in financial markets along with a range of
other verticals. During the first half we have advanced our
discussions with multiple potential customers in other industries
and have also sought to increase our routes to markets through
partnership and OEM agreements with third parties.
We continue to see evidence that FD is becoming an increasingly
strategic managed service and consulting partner for large
investment banks, evidenced by the pipeline of new managed services
assignments being discussed with clients. Our clients' demonstrable
confidence in our capabilities and appetite for our services allows
us to continue to invest in the training and retention of our own
staff as we prepare for continued growth.
In summary, following a strong performance in the first half of
our financial year and continued investment in our technology and
consulting offerings, the Group is well positioned for growth in
the second half and beyond.
Brian Conlon
Chief Executive Officer
FINANCIAL REVIEW
Group revenue increased by 34% to GBP72.4m (H1 2016: GBP53.8m),
which was predominantly organic. An analysis of revenue is provided
in the table below.
Six months ended
31 August 2016 2015 Increase
GBP000 GBP000 %
Managed services
and consulting 42,976 35,503 21%
Software:
Recurring revenue 13,633 9,426 45%
Implementation
and support 12,906 7,961 62%
Perpetual 2,841 944 201%
Software total 29,380 18,331 60%
Total 72,356 53,834 34%
Currency movements impacted on our results in H1 and is expected
do so again in the second half of our financial year. The weakness
of sterling against the U.S. dollar has led to an increase in
revenue which, after taking into account the effect of our natural
currency hedge by virtue of our global operations, resulted in a
GBP0.5m increase in adjusted EBITDA. If currency rates remain at
present levels for the rest of our financial year, we expect a
currency benefit for the second half similar to that in H1.
Adjusted EBITDA increased by 26% to GBP13.6m (H1 2016:
GBP10.8m). Our stated intention is to invest and capitalise on
opportunities to ensure deliverable long-term growth. In the period
we have added senior members to our sales teams across the
business, realigned and strengthened our business development teams
to target new verticals, invested in our software solutions
delivery teams, incurred early set-up costs in regard to new
managed services contracts and continued to invest in our people.
These investments strengthen the operations of the Group and
position us to continue to capitalise on the potential in capital
markets as well as other verticals.
The Group continued to invest in R&D to maintain its
technology lead, as detailed in the table below.
Six months ended
31 August 2016 2015
GBP000 GBP000
Capitalisation
of R&D costs 3,686 3,703
Amortisation of
R&D (1,993) (1,724)
Net capitalisation 1,693 1,979
Proportion of
software revenue 6% 11%
The Group's effective tax rate was 29% (H1 2016: 25%) with this
movement predominantly being attributable to the implementation of
the new Research and Development Expenditure Credit (RDEC) tax
legislation which has replaced the Research and Development Tax
Credit. This was mandatory from 1 April 2016 with the Group
implementing the legislation from 1 March 2016. For the six months
to 31 August 2016 the introduction of RDEC reduced the Group's
profit after tax by GBP0.2m.
The fully diluted average number of shares in issue increased to
25.9m (H1 2016: 25.0m). This resulted in fully diluted earnings per
share of 29.0p (H1 2016: 23.9p), representing growth of 21.4% for
the period.
The Group generated GBP12.4m of cash from operating activities
before taxation payments (H1 2016: GBP7.0m), representing a 91.3%
conversion of adjusted EBITDA (H1 2016: 64.7%). At the period end,
net debt was GBP16.3m (FY 2016: GBP15.1m). Debt, which is
principally US dollar-denominated, increased due to a foreign
currency translation impact of GBP1.6m.
Net assets at 31 August 2016 were GBP123.9m compared to
GBP106.6m at 31 August 2015.
Consolidated statement of comprehensive income (unaudited)
6 months 6 months
ended 31 ended 31
August August
2016 2015
Notes GBP'000 GBP'000
Revenue 2 72,356 53,834
Cost of sales (51,509) (37,976)
Gross profit 20,847 15,858
Other income 776 544
Administrative expenses (14,886) (11,144)
Results from operating activities 6,737 5,258
Acquisition costs 492 442
Share-based payments 1,077 504
Depreciation and amortisation 2,885 2,542
Amortisation of acquired
intangible assets (IFRS3) 2,376 2,015
Adjusted EBITDA 13,567 10,761
----------------------------------- ------ ---------- ----------
Financial income 1 5
Financial expense (604) (661)
Gain on foreign currency
translation 898 28
Net financing income/(expense) 295 (628)
Profit before tax 7,032 4,630
Income tax expense (2,024) (1,151)
Profit for the period 5,008 3,479
========== ==========
Pence Pence
Earnings per Share
Basic 4 20.5 15.0
Diluted 19.4 13.9
========== ==========
Consolidated statement of changes in equity
Share Share Share Currency Retained Total
capital premium option translation earnings equity
reserve adjustment
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 March 2015 114 55,286 6,262 (1,690) 38,352 98,324
-------- -------- -------- ------------ --------- -------
Total comprehensive income for
the period
Profit for the period - - - - 3,479 3,479
Other comprehensive income
Net loss on net investment in foreign
subsidiary and associate - - - (410) - (410)
Net profit on hedge of movement
in foreign subsidiary and associate - - - 76 - 76
-------- -------- -------- ------------ --------- -------
Total comprehensive income for
the period - - - (334) 3,479 3,145
Transactions with owners, recorded
directly in equity
Income tax on share options - - 246 - - 246
Exercise or issue of shares 2 4,198 - - - 4,200
Issue of shares as purchase consideration 1 2,599 - - - 2,600
Share-based payment charge - - 420 - - 420
Dividends to equity holders - - - - (2,371) (2,371)
-------- -------- -------- ------------ --------- -------
Balance at 31 August 2015 117 62,083 6,928 (2,024) 39,460 106,564
======== ======== ======== ============ ========= =======
Share Share Share Currency Retained Total
capital premium option translation earnings equity
reserve adjustment
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 March 2016 120 65,903 7,217 370 39,654 113,264
-------- -------- -------- ------------ --------- -------
Total comprehensive income for
the period
Profit for the period - - - - 5,008 5,008
Other comprehensive income
Net gain on net investment in
foreign subsidiary and associate - - - 2,630 - 2,630
Net profit on hedge of movement
in foreign subsidiary and associate - - - 2,041 - 2,041
-------- -------- -------- ------------ --------- -------
Total comprehensive income for
the period - - - 4,671 5,008 9,679
Transactions with owners, recorded
directly in equity
Income tax on share options - - 756 - - 756
Exercise or issue of shares 3 2,654 - - - 2,657
Share-based payment charge - - 510 - - 510
Dividends to equity holders - - - - (2,918) (2,918)
-------- -------- -------- ------------ --------- -------
Balance at 31 August 2016 123 68,557 8,483 5,041 41,744 123,948
======== ======== ======== ============ ========= =======
Consolidated statement of financial position (unaudited)
As at As at As at
31 August 31 August 29 February
2016 2015 2016
GBP'000 GBP'000 GBP'000
Assets
Property, plant and equipment 6,601 6,010 6,301
Intangible assets and
goodwill 158,589 136,399 151,338
Other financial assets 1,902 - -
Trade and other receivables 1,248 2,648 2,504
Deferred tax asset 11,726 7,289 9,030
----------- ----------- -------------
Non-current assets 180,066 152,346 169,173
Trade and other receivables 40,481 29,015 38,665
Cash and cash equivalents 13,888 19,965 15,100
Current assets 54,369 48,980 53,765
Total assets 234,435 201,326 222,938
----------- ----------- -------------
Equity
Share capital 123 117 120
Share premium 68,557 62,083 65,903
Shares option reserve 8,483 6,928 7,217
Currency translation adjustment
reserve 5,041 (2,024) 370
Retained earnings 41,744 39,460 39,654
Equity attributable to
shareholders 123,948 106,564 113,264
=========== =========== =============
Liabilities
Loans and borrowings 26,798 25,534 26,795
Trade and other payables 33,727 29,489 31,963
Deferred tax liabilities 12,639 11,641 12,289
Contingent deferred consideration 1,176 1,134 1,176
Non-current liabilities 74,340 67,798 72,223
Loans and borrowings 3,397 4,899 3,428
Trade and other payables 25,300 16,135 27,262
Current tax payable 1,626 2,117 1,488
Employee benefits 3,147 3,813 2,554
Contingent deferred consideration 2,677 - 2,719
Current liabilities 36,147 26,964 37,451
Total liabilities 110,487 94,762 109,674
----------- ----------- -------------
Total equity and liabilities 234,435 201,326 222,938
=========== =========== =============
Consolidated statement of cash flows (unaudited)
6 months 6 months
ended 31 ended 31
August 2016 August
2015
GBP'000 GBP'000
Cash flows from operating
activities
Profit for the period 5,008 3,479
Adjustments for:
Net finance costs (295) 628
Depreciation of property,
plant and equipment 892 756
Amortisation of intangible
assets 4,369 3,739
Increase in deferred consideration 439 -
Equity settled share-based
payment transactions 1,077 504
Grant income (776) (544)
Tax expense 2,024 1,151
------------- ----------
12,738 9,713
Changes in:
Trade and other receivables 1,057 1,231
Trade and other payables (1,407) (3,984)
------------- ----------
Cash generated from operating
activities 12,388 6,960
Taxes paid (3,577) 429
------------- ----------
Net cash from operating activities 8,811 7,389
Cash flows from investing
activities
Interest received 1 5
Acquisition of property,
plant and equipment (956) (747)
Disposal of investment - 6,296
Acquisition of intangible
assets (3,686) (3,703)
Acquisition of subsidiaries - (4,745)
Acquisition of financial (1,902) -
assets
Deferred consideration paid (480) -
Net cash used in investing
activities (7,023) (2,894)
Cash flows from financing
activities
Proceeds from issue of share
capital 2,090 3,699
Repayment of borrowings (1,634) (1,490)
Payment of finance lease
liabilities (31) (45)
Interest paid (599) (661)
Dividends paid (2,839) (2,280)
Net cash from financing activities (3,013) (777)
Net increase/(decrease) in
cash and cash equivalents (1,225) 3,718
Cash and cash equivalents
at 1 March 15,100 14,705
Effects of exchange rate
changes on cash held 13 28
Cash and cash equivalents
at 31 August 13,888 18,451
------------- ----------
Notes to the Interim Results
1 Basis of Preparation
The results for the six months ended 31 August 2016 are
unaudited and have not been reviewed by the Company's Auditors.
They have been prepared on accounting bases and policies that are
consistent with those used in the preparation of the financial
statements of the Company for the year ended 29 February 2016.
The financial statements contained in this report do not
constitute statutory accounts within the meaning of Section 477 of
the Companies Act 2006. The results for the period ended 29
February 2016 were prepared under International Financial Reporting
Standards (IFRSs) as adopted by the EU ("adopted IFRSs") and
reported on by the auditors and received an unqualified audit
report. Full accounts for the period ended 29 February 2016 have
been delivered to the Registrar of Companies.
2 Segmental Reporting
Revenue by industry
2016 2015
GBP'000 GBP'000
FinTech 56,691 42,576
MarTech 14,097 9,897
Other 1,568 1,361
______ ______
Total 72,356 53,834
______ ______
Revenue by category
2016 2015
GBP'000 GBP'000
Managed services and consulting 42,976 35,503
Software 29,380 18,331
______ ______
Total 72,356 53,834
______ ______
Geographical location analysis
2016 2015
GBP'000 GBP'000
UK 24,403 20,496
Rest of Europe 11,026 8,623
Americas 32,823 21,572
Australasia 4,104 3,143
______ ______
Total 72,356 53,834
______ ______
3 Dividends
An Interim Dividend of 6.00p per share will be made for the six
months to 31 August 2016. This will be paid to shareholders on 5
December 2016 to shareholders on the register on 11 November 2016.
The shares will be marked Ex-Dividend on 10 November 2016.
4 Earnings per Share
Basic earnings per share for the six months ended 31 August 2016
has been calculated on the basis of the reported profit after
taxation of GBP5.0m (H1 2016: GBP3.5m) and the weighted average
number of shares for the period of 24,461,620 (H1 2016:
23,257,740). This provides basic earnings per share of 20.5 pence
(H1 2016: 15.0 pence).
Diluted earnings per share for the six months ended 31 August
2016 has been calculated on the basis of the reported profit after
taxation of GBP5.0m (H1 2016: GBP3.5m) and the weighted average
number of shares after adjustment for the effects of all dilutive
potential ordinary shares 25,867,614 (H1 2016: 25,039,799). This
provides diluted earnings per share of 19.4 pence (H1 2016: 13.9
pence).
The Board considers that adjusted earnings is an important
measure of the Group's financial performance. Adjusted earnings in
the period was GBP7,498k (H1 2016: GBP5,978k), which excludes the
amortisation of acquired intangibles of GBP2,376k, (H1 2016:
GBP2,015k) share-based payments of GBP1,077k (H1 2016: GBP504k),
acquisition costs of GBP492k (H1 2016: GBP442k), gain on foreign
currency translation of GBP898k (H1 2016: GBP28k) and associated
taxation impact of these adjustments of GBP557k (H1 2016: GBP434k).
Using the same weighted average of shares as above provides
adjusted basic earnings per share of 30.7 pence (H1 2016: 25.7
pence) and adjusted diluted earnings per share of 29.0 pence (H1
2016: 23.9 pence).
5 Interim Report
Copies can be obtained from the Company's head and registered
office: 3 Canal Quay, Newry, Co. Down, BT35 6BP and are available
to download from the Company's website
www.firstderivatives.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BFLLXQBFFFBB
(END) Dow Jones Newswires
November 01, 2016 03:00 ET (07:00 GMT)