TIDMFDP
RNS Number : 7177V
First Derivatives PLC
07 November 2017
7 November 2017
First Derivatives plc
("FD", the "Company" or the "Group")
Interim results for the six months ended 31 August 2017
FD (AIM:FDP.L, ESM:FDP.I) today announces its results for the
six months ended 31 August 2017.
Financial Highlights
Revenue GBP87.8m (H1 2017:
GBP72.4m) +21%
Adjusted EBITDA* GBP16.1m
(H1 2017: GBP13.6m) +19%
Adjusted** profit before tax
GBP11.4m (H1 2017: GBP10.1m) +13%
Profit before tax*** GBP6.3m
(H1 2017: GBP7.0m) -10%
Adjusted** fully diluted EPS
34.4p (H1 2017: 29.0p) +19%
Interim dividend 7.0p per
share (H1 2017: 6.0p) +17%
Net debt GBP13.1m (FY 2017:
GBP13.5m)
Business Highlights
- Strong growth in software revenue, up by 32% to GBP52.2m (H1
2017:GBP39.5m), with recurring software revenue up by 44% to
GBP19.6m (H1 2017: GBP13.6m)
- Strong demand and strategic progression in Managed Services
and Consulting with revenue growth of 8% to GBP35.6m (H1 2017:
GBP32.9m)
- FinTech revenue up 18% to GBP66.8m (H1 2017: GBP56.7m), driven
by 32% increase in recurring software revenue within our global
banking client base
- MarTech revenue up 30% to GBP18.3m (H1 2017: GBP14.1m), with
growth accelerating in the second quarter following the launch of
the latest version of our predictive analytics platform
- Signed initial contracts in multiple new sectors including
sensor data management, telecoms, healthcare and retail
- Hired 386 graduates calendar year-to-date to assist in the
delivery of growth across the Group, up 66% on the same period last
year
- Post period end, announced major investment in Kx to put
machine learning at the heart of future R&D developments,
strengthening Kx's competitive position and opening up new
markets
- Strong pipeline and positive start to the second half of the
financial year, with full year financial performance expected to be
slightly ahead of the Board's expectations.
*Adjusted for share based payments and acquisition costs
**Adjusted for amortisation of acquired intangibles, share based
payments, acquisition costs, finance translation income/charges
(and exceptional taxation for EPS)
***Includes foreign currency translation loss and deferred
consideration on prior acquisitions
Seamus Keating, Chairman of FD, commented:
"We have continued to position the Group to target several
high-value addressable markets, while maintaining our financial
discipline. Through our conversations with existing and potential
customers and partners, we remain convinced that demand for
ultra-high performance analytics capability will continue to grow
and that Kx technology leads this market in terms of its
performance and lower total cost of ownership.
Our managed services and consulting activities are also in high
demand and we are addressing this through record levels of
recruitment of high-calibre graduates. We have signed a number of
high value contracts in the first half and there is momentum behind
our commercial discussions across the Group. We therefore
anticipate a strong full year financial performance, slightly ahead
of the Board's expectations."
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)
Andrew Pinder
Carlton Nelson
Sebastian Lawrence +44 (0)20 7597 5970
Goodbody (ESM Adviser and
Broker)
Linda Hickey
Finbarr Griffin +353 1 667 0420
FTI Consulting
Matt Dixon
Dwight Burden
Darius Alexander
Niamh Fogarty +44 (0)20 3727 1000
About FD
FD is a global technology provider with 20 years of experience
working with some of the world's largest finance, technology,
retail, pharma, manufacturing and energy institutions. The Group's
Kx technology, incorporating the kdb+ time-series database, is a
leader in high-performance, in-memory computing, streaming
analytics and operational intelligence. Kx delivers the best
possible performance and flexibility for high-volume,
data-intensive analytics and applications across multiple
industries. FD operates from 14 offices across Europe, North
America and Asia Pacific, including its headquarters in Newry, and
employs more than 2,000 people worldwide.
For further information, please visit
www.firstderivatives.com
Chairman's Statement
We are pleased to report another period of progress against our
strategic objectives and the continued delivery of strong growth as
we maintain our financial discipline. Group revenue increased by
21% to GBP87.8m and adjusted EBITDA was 19% higher at GBP16.1m,
despite continuing investment to position our software platform,
branded as Kx technology, within new vertical markets.
Adjusted earnings per share increased by 19% to 34.4p (H1 2017:
29.0p) with net debt (loans and borrowings less cash and cash
equivalents) at the period end of GBP13.1m (H1 2017: GBP16.3m). The
Board has declared payment of an interim dividend of 7.0p per share
(H1 2017: 6.0p per share). This will be paid on 6 December 2017 to
those shareholders on the register on 15 November 2017.
Our Kx software platform is the established market leader in the
analysis of market data for financial services (FinTech). Clients
include financial regulators, stock exchanges and the leading
global investment banks. Our competitive advantage is the ability
to capture, enhance and analyse extremely large volumes of data in
real-time, providing actionable insights from the data under
management. These insights can then be used to support risk
management, balance sheet optimisation and regulatory compliance
and reporting.
Revenue from FinTech increased by 18% to GBP66.8m with growth in
recurring revenue, a key indicator, strongly ahead by 32%. We
continue to invest in software development, pre-sales and bid
costs, sales and marketing, implementation and support teams to
achieve our growth targets.
We operate a direct sales model within FinTech, and in the
current period have successfully signed an increased number of
contracts compared to prior periods. We have added to our sales
capabilities through OEM arrangements such as that with Thomson
Reuters, where Kx is embedded within Reuters' Velocity Analytics
product. This relationship continues to deepen and good progress
has been made through the period.
In addition, we are a leading provider of professional services
to the capital markets industry, supporting business critical
systems for our global investment banking clients. Our strategy in
this area is to be the provider of choice within capital markets
for the support and transformation of mission critical applications
across asset classes, through front, middle and back office
environments.
Our strategy is to use Kx's established market reputation in
FinTech, not only to increase the use of Kx within our core market,
but also to bring our unique technological capabilities to new
markets. Expansion into these markets is being addressed through a
combination of direct sales and working with partners to extend our
market reach.
Our marketing technology (MarTech) business performed well, with
revenue increasing by 30% to GBP18.3m (H1 2017: GBP14.1m). Our
technology differentiates our products in a multi-billion dollar
addressable market by its ability to develop actionable insights
through interrogation of multiple data sources, each of which are
of significant scale. During the period we launched an upgraded
version of our end-to-end predictive analytics and lead management
service platform, MRP Prelytix, which has been well-received by
customers including SAP, Cisco and Oracle.
In other markets we continued to make progress. Of note, and in
response to market demand, we announced a significant investment in
machine learning, putting AI at the heart of our future development
plans. We have added to our strategic partners to increase our
routes to market, with agreements announced during the period with
Airbus and the European Space Agency. In recent months we have also
signed a number of important contract wins in markets which we
consider to have significant potential for the Group. These include
a deal with a Fortune 500 corporation to use Kx to provide fault
detection solutions, a contract win with Red Bull Racing for
cutting edge sensor data analytics and initial deals in telecoms,
healthcare and retail. These successes reinforce our view that Kx
has a competitive advantage in multiple high value addressable
markets, in line with our strategic objectives.
We remain committed to the delivery of sustainable, long term
growth. During the period the Group achieved a number of
milestones, not least of which was taking our headcount above 2,000
people. The skills and commitment of our staff are driving our
growth and give me confidence in our ambitious plans. We also
continue to evaluate strategic acquisitions where we believe such
deals would accelerate our organic growth ambitions.
Current Trading and Outlook
The Group has a strong pipeline and has made a positive start to
the second half of the financial year. We have signed a number of
high value contracts in the first half and there is momentum behind
our commercial discussions across the Group. We therefore
anticipate a strong full year financial performance, slightly ahead
of the Board's expectations.
I would like to thank the staff of FD and my Board colleagues
for their hard work in achieving another successful period of
growth for the Group.
Seamus Keating
Chairman
Chief Executive's Statement
This has been another important period in the development of FD
as we seek to build on the performance of our technology in FinTech
by establishing ourselves within a number of large and fast growing
markets.
Our Software division, branded as Kx technology ("Kx"), grew by
32%, powered by 44% growth in recurring revenue. Within FinTech we
are now established as a go-to provider of solutions for demanding
analytics challenges, as a result of which we are involved in a
number of strategic conversations with existing and potential
clients. In MarTech, the recent launch of the latest version of our
predictive analytics platform, MRP Prelytix 2.0, is being well
received, while in other markets we are making progress towards
greater commercialisation across a range of opportunities.
We again delivered solid growth with revenue up 21% and adjusted
EBITDA up 19%. Our high-margin revenue growth allowed us to
continue to deliver growth in profits while making significant
investments to position ourselves for future growth and to
strengthen our technology advantages. During the period we
announced significant investment in R&D in the form of machine
learning, as well as continuing to increase our marketing, direct
and indirect sales capabilities to enable us to bring our
technology to new markets.
From ongoing conversations across multiple industries we remain
convinced that our technology is ideally suited for markets as
diverse as healthcare and telecoms. This belief is reinforced by
recent announcements relating to strategic partnerships and
contract wins with the likes of the European Space Agency,
Scientific Revenue and Brainwave Bank.
In our Managed Services and Consulting division we remain on
track to deliver another year of double digit growth, driven by our
investment in training and development. One of our strengths is the
fungibility of our talent pool and this continued to be evidenced
by the deployment of consulting staff on software implementations
during the period to meet demand. To address the high levels of
demand across our business, we have increased our graduate
recruitment in 2017, with nearly 400 graduates recruited so far
this year, a 66% increase on the prior period.
This continued investment across the Group is a statement of our
belief in the scale FD can achieve.
Software
Our Kx software was designed to meet the most demanding data
challenges in terms of velocity and volume. We are now established
as the leading technology dealing with market data analytics where
our ability to deal with millions of events per second on commodity
hardware is unrivalled. The Group is now targeting a range of other
markets and industries where data volumes and frequency of updates
is rising rapidly, stretching the capability of other technologies
to cope. We have built specific applications in a number of
markets, while our technology can also be used by third parties as
a platform on which high performance, disruptive applications can
be built.
Our software solutions, for all end use cases, are based on a
common technology platform, driven by a single R&D team and
pooled 24/7 global support. This approach generates significant
economies of scale, reduces time to market for new products and
provides operational leverage given the low incremental cost of
acquiring and supporting new customers.
We have a significant market opportunity - estimates from
independent industry analysts such as IDC and ABI Research show a
combined total addressable target market in the sectors we are
targeting in excess of $60 billion per annum.
Our development road map remains focussed on extending Kx's
competitive position in areas such as sensor data and the
Industrial Internet of Things, cyber security, blockchain and
augmented / virtual reality. In September we announced a major
initiative to put machine learning at the heart of our future
technology developments and this has generated significant customer
interest, from which we have already signed our first customer
engagement with a global investment bank.
As data challenges continue to increase, we are confident that
the performance attributes of our Kx technology, combined with the
investment we are making to extend the use cases for which it is
ideally suited, will drive greater global uptake of Kx.
FinTech
Our FinTech software revenue continued to grow strongly, up 31%
to GBP31.2m (H1 2017: GBP23.8m). The Group continues to benefit
from the increasing recognition that Kx is ideally suited to the
industry's most demanding data analytics challenges. Kx is also
increasingly seen as an enterprise solution, which is leading to
larger average deal sizes and more strategic discussions with
existing and potential clients.
Within FinTech, our Kx software solutions are utilised by
investment banks, regulators and exchanges for purposes including
real-time market surveillance, regulatory reporting, risk reporting
and market data analytics.
Regulation remains a key driver of investment decisions, with
recognition within the industry that many systems that compete with
Kx lack the granularity of data capture that is required under
MiFID II and MAR, for example. We believe that we are well
positioned to continue to take market share within FinTech and that
there is considerable opportunity to expand within existing
customers as well as add new clients.
In addition to direct sales, the Group has increased its routes
to market in recent years through OEM agreements with Thomson
Reuters, where Kx is the analytics platform for its Velocity
Analytics product, as well as Quantile, a provider of counterparty
risk products, and Cobalt, which uses blockchain technology to
reduce post-trade cost and risk for financial market participants.
All of these technology partner deals are progressing well, in line
with our expectations, and offer incremental growth opportunities
for the Group.
MarTech
MarTech revenue increased by 30% to GBP18.3m (H1 2017:
GBP14.1m), with recurring revenue up 72% to GBP6.9m.
Our Marketing Cloud platform applies sophisticated predictive
analytics to billions of data points per day from internet
searches, web site traffic, CRM data and other sources to determine
buying intent globally. Delivered on a self-serve subscription
basis, the data can be leveraged for lead generation in addition to
optimising the digital marketing spend by granular targeting of
advertisements. We believe our end-to-end marketing platform is a
unique offering.
During the period we continued to develop our platform, with the
release of MRP Prelytix 2.0. Key new features include increased
data sources and analytics, improved Account Based Marketing (ABM)
scoring, the ability for clients to customise algorithms and
streamlined integration of MRP Prelytix into clients' systems.
These advances are reflected in highly impressive return on
investment figures for clients using our platform. Clients using
MRP Prelytix have a 257% greater response rate, a 197% higher
chance of converting leads into closed business and achieve a 208%
increase in average deal size compared to the same sales and
marketing tactics not informed by MRP Prelytix.
Other Markets
A key element of our strategy is to establish Kx technology in
other markets. While reported revenue remains low (GBP2.7m during
the period, up 74% on H1 2017) we are pleased with the traction we
are seeing across a number of nascent markets.
In particular, a selection of the progress made during the
period includes:
-- Sensor analytics - we announced an important contract win
with a Fortune 500 engineering solutions company for the use of Kx
as the high-performance data historian and analytics engine in the
client's fault detection product range. This is a high value
contract where Kx's superior analytics performance, delivering
millions of sensor reads per second, allowed us to displace the
incumbent solution and will allow us to showcase Kx's capabilities
within the Industrial Internet of Things. After the period end we
also announced that Red Bull Racing had selected Kx for analytics
on sensor data from its Formula 1 cars. This reinforces the cutting
edge performance of Kx for sensor analytics and provides domain
expertise for our push into the automotive market generally.
-- Commercial Space market - we announced agreements with NASA
and the European Space Agency that support earlier announcements
with Airbus and 3DEO around analytics on Earth Observation imagery.
Kx is gaining traction within this market and is ideally suited to
the intensive computational requirements to turn digital imagery
into useful insights.
-- Telecoms - we signed a contract to support the monitoring of
a telecoms network to identify performance issues. Although at an
early stage, this has the potential to grow significantly and to be
a showcase for the use of Kx in this large and important
market.
-- Healthcare - after the period end, we signed an agreement
with BrainwaveBank for Kx to power its neuroscience platform as it
seeks to build the world's first Big Data collection of brainwave
activity data. This will allow individuals to measure and track
their own cognitive health and again showcases the power,
performance and flexibility of Kx.
This is a small but illustrative sample of progress made in some
of the markets in which we are seeking to establish Kx. We are
encouraged by the numerous discussions we are having across
industries and while we recognise it will take time to establish
our presence within them; nonetheless we believe the compelling
performance and cost of ownership advantages of Kx will enable us
to deliver on these opportunities.
Managed Services and Consulting
Managed Services and Consulting continued to grow, with revenues
increasing by 8% to GBP35.6m (H1 2017: GBP32.9m). Demand for our
expertise remained high, although the reported growth rate was
lower than in recent years as a result of a redeployment of our
data scientists onto software implementations, in response to
demand.
Our managed service activities focus on the support of mission
critical systems within global investment banks. The Group assists
clients by deploying its data scientists to assist in the
development of more effective data architectures, to rationalise
their application landscape and implement regulatory change.
We have more than 20 years of experience working with software
from third party providers such as Murex, Calypso and Summit as
well as a range of legacy and in-house systems. In addition to
implementation, development and support services we have developed
a number of complementary offerings such as managing regulatory and
compliance initiatives. This enables us to assemble
multi-disciplined teams to provide upgrades, testing, customisation
and development of interfaces for our clients.
FD's services are provided both at the client's site and
remotely from near shore centres including our headquarters in
Newry. We operate a comprehensive training programme to provide our
consultants with expertise in data science and domain knowledge in
capital markets. This investment in our data science professionals
differentiates us from our competitors and, combined with our
repeat and recurring revenue, drives our growth each year.
While the high level of Kx sales and consequent implementation
work has required some redeployment of our data science consultants
from managed services into Kx implementation, there is no let-up in
demand for FD's capability in third party managed services and
consulting. This is evidenced by some significant new multi-year
contracts signed during the period including:
-- The implementation of a large third party system for a New
York-based investment bank, representing one of the largest
contracts in the Group's history.
-- A major upgrade to a third party system deployed in the U.S.
by a major European financial institution.
These major contract awards are in growing recognition of our
reputation for both delivery and client satisfaction and the
growing breadth and depth of our skills base. This allows us to bid
for increasingly larger projects, to lock-in recurring revenue and
to cross-sell software products.
Regulation and compliance, including MiFID II, Know Your Client,
Anti Money Laundering, the General Data Protection Regulation
(GDPR), the Market Abuse Regulation (MAR) as well as the
Consolidated Audit Trail (CAT) in the US, remain key drivers of our
business. As we deepen our relationships with key clients we are
taking increasing responsibility for assisting them to meet these
and other regulations across geographies.
The contract wins referenced above provide further visibility
over growth and we also have a strong pipeline of potential new
engagements with existing and new clients. Key to the delivery of
this growth is our industrialised recruitment and training process,
with record recruitment in the period designed to provide us with
the resources needed to capitalise on the opportunities we see in
our pipeline.
These factors provide us with confidence in a return to historic
growth levels in Managed Services and Consulting in the second half
of our financial year and beyond.
Management and Personnel
The Group now employs more than 2,000 people, up from over 1,700
people at the same time last year. In the year to date we have
hired nearly 400 graduates, reflecting our expectation of future
growth. The opportunity to work with leading edge technology in
premier locations around the world continues to help us secure new
talent and achieve high retention rates. We continue to emphasise
training and continued development of our talent, which is another
key driver of employee retention.
Once again I would like to thank all FD employees for the
contribution they have made to our growth through their hard work,
talent and flexibility.
Summary
We continue to make good progress towards our strategic
objectives while delivering strong growth and disciplined
investment. In FinTech we are regarded as a key software provider
whose solutions are able to cope with the most demanding data
challenges within the industry and we have a client list that
showcases our credentials. In MarTech the release of an upgraded
version of MRP Prelytix widens the gap between ourselves and
competing solutions, while we can clearly demonstrate a compelling
return on investment for our clients. In other high value markets
we have made good progress and have high hopes that we can make
further breakthrough contract wins to add to our deal with a
Fortune 500 engineering company within the Industrial Internet of
Things, secured earlier this year.
In Managed Services and Consulting we continue to see strong
demand for our capabilities and have increased our graduate
recruitment programme to ensure we can deliver against this
opportunity, delivering growth in line with historic levels.
The Group provides compelling software and managed service
solutions across a number of very large addressable markets. Based
on the pipeline of opportunities and ongoing strategic
conversations with clients, I remain confident that we can continue
to deliver significant returns for shareholders.
Brian Conlon
Chief Executive Officer
Financial Review
Group revenue increased by 21% to GBP87.8m (H1 2017: GBP72.4m),
all of which was organic. An analysis of revenue is provided in the
table below.
H1 H1
2018 2017 Change
GBP000 GBP000
Managed services
and consulting 35,636 32,887 8%
Software:
Recurring revenue 19,618 13,633 44%
Implementation
and support 30,261 22,995 32%
Perpetual 2,322 2,841 -18%
Software total 52,201 39,469 32%
Total 87,837 72,356 21%
FinTech Revenue 66,848 56,691 18%
MarTech Revenue 18,260 14,097 30%
Other 2,729 1,568 74%
Total 87,837 72,356 21%
Adjusted EBITDA increased by 19% to GBP16.1m (H1 2017:
GBP13.6m), with an adjusted EBITDA margin of 18.3% for the period
(H1 2017: 18.7%), a strong performance given the ongoing investment
to deliver future growth. In addition to the investments in areas
such as machine learning and MRP Prelytix highlighted earlier, we
have continued to invest across the Group to position ourselves in
new markets, adding to our delivery, sales and marketing
capabilities.
The adjusted profit after tax for the period of GBP9.2m (H1
2017: GBP7.5m) represented growth of 23%. The Group does not
operate a currency hedging policy, with the structure of the
Group's geographical operations providing a hedge against currency
movements. The impact of currency movements overall during the
period was again broadly neutral to the Group's earnings, with a
small benefit to revenue and adjusted EBITDA balanced by an
increase in dollar-denominated interest payments and the currency
translation of taxation charges.
The Group continued to invest in R&D to maintain its
technology lead, albeit with a greater proportion of spend written
off and an increase in the amortisation of previously capitalised
development costs. As a result, the net benefit to the Income
Statement fell again during the period, as detailed in the table
below.
H1 H1
2018 2017
GBP000 GBP000
Capitalisation
of R&D costs 3,766 3,686
Amortisation of
R&D (3,052) (1,993)
Net capitalisation 714 1,693
Proportion of
software revenue 1% 4%
Reported profit before tax decreased by 10% (H1 2017: up 27%)
primarily as a result of a loss on foreign currency translation and
an increase in acquisition costs as a result of deferred
consideration on prior acquisitions.
The Group's effective tax rate was 27.4% (H1 2017: 28.8%) which
was broadly in line with the full year tax rate for FY 2017. The
fully diluted average number of shares in issue increased to 26.8m
(H1 2017: 25.9m). This resulted in fully diluted earnings per share
of 34.4p, representing growth of 19% for the period (H1 2017:
29.0p).
The calculation of adjusted profit after tax is detailed
below.
H1 H1
2018 2017
GBP'000 GBP'000
Reported profit for
the year 4,578 5,008
Adjustments for:
Amortisation of acquired
intangibles 2,335 2,376
Share based payment
and related costs 1,006 1,077
Acquisition costs,
associate disposal
costs and contingent
purchase consideration 1,364 492
Loss/(Gain) on foreign
currency translation 350 (898)
Share of loss of Associate 41
Tax effect of the above (466) (557)
-------- --------
Adjusted profit after
tax 9,208 7,498
======== ========
Adjusted EPS (fully
diluted) 34.4p 29.0p
The Group generated GBP13.0m of cash from operating activities
before taxation payments (H1 2017: GBP12.4m), representing an 81%
conversion rate of adjusted EBITDA (H1 2017: 91%) due to the timing
of remuneration payments and the payment profile of recurring
revenue.
At the period end, net debt was GBP13.1m (H1 2017: GBP16.3m, FY
2017: GBP13.5m), after the payment of GBP3.0m in dividends and
GBP4.4m of capital on associates and investments for the
penetration of new markets and prior year acquisitions. Total
assets at 31 August 2017 were GBP251.3m compared to GBP234.4m at 31
August 2016.
Consolidated statement of comprehensive income (unaudited)
6 months 6 months
ended 31 ended 31
August August
2017 2016
Notes GBP'000 GBP'000
Revenue 2 87,837 72,356
Cost of sales (62,778) (51,509)
Gross profit 25,059 20,847
Other income 596 776
Administrative expenses (18,468) (14,886)
Results from operating activities 7,187 6,737
Acquisition costs and contingent
purchase consideration 1,364 492
Share-based payments 1,006 1,077
Depreciation and amortisation 4,218 2,885
Amortisation of acquired
intangible assets (IFRS3) 2,335 2,376
Adjusted EBITDA 16,110 13,567
----------------------------------- ------ ---------- ----------
Financial income 1 1
Financial expense (490) (604)
(Loss)/Gain on foreign currency
translation (350) 898
Net financing (expense)/income (839) 295
Share of loss of associate (41) -
using the equity method,
net of tax
Profit before tax 6,307 7,032
Income tax expense (1,729) (2,024)
Profit for the period 4,578 5,008
========== ==========
Pence Pence
Earnings per Share
Basic 4 18.2 20.5
Diluted 17.1 19.4
========== ==========
Consolidated statement of changes in equity
Share Currency
Share Share option translation Retained Total
capital premium reserve adjustment earnings equity
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
======== ======== ======== ============ ========= =======
Share Fair value Currency
Share Share option reserve translation Retained Total
capital premium reserve adjustment earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 March 2017 124 72,275 10,225 - 8,335 40,772 131,731
-------- -------- -------- ---------- ------------ --------- -------
Total comprehensive income
for the period
Profit for the period - - - - - 4,578 4,578
Other comprehensive income
Net gain on net investment
in foreign subsidiary and associate - - - - (2,240) - (2,240)
Net profit on hedge of movement
in foreign subsidiary and associate - - - - 964 - 964
-------- -------- -------- ---------- ------------ --------- -------
Total comprehensive income
for the period - - - - (1,276) 4,578 3,302
Transactions with owners, recorded
directly in equity
Income tax on share options - - 1,959 - - - 1,959
Exercise or issue of shares - 3,753 - - - - 3,753
Share-based payment charge - - 600 - - - 600
Dividends to equity holders - - - - - (3,533) (3,533)
-------- -------- -------- ---------- ------------ --------- -------
Balance at 31 August 2017 124 76,028 12,784 - 7,059 41,817 137,812
======== ======== ======== ========== ============ ========= =======
Consolidated statement of financial position (unaudited)
As at As at As at
31 August 31 August 28 February
2017 2016 2017
GBP'000 GBP'000 GBP'000
Assets
Property, plant and equipment 6,610 6,601 6,628
Intangible assets and
goodwill 158,826 158,589 163,391
Trade and other receivables 2,686 1,248 3,630
Investment in equity -
associated investees 1,948 - 1,548
Other financial assets 3,452 1,902 3,121
Deferred tax asset 17,503 11,726 14,859
----------- ----------- -------------
Non-current assets 191,025 180,066 193,177
Trade and other receivables 46,509 40,481 43,738
Cash and cash equivalents 13,738 13,888 16,250
Current assets 60,247 54,369 59,988
Total assets 251,272 234,435 253,165
----------- ----------- -------------
Equity
Share capital 124 123 124
Share premium 76,028 68,557 72,275
Shares option reserve 12,784 8,483 10,225
Currency translation adjustment
reserve 7,059 5,041 8,335
Retained earnings 41,817 41,744 40,772
Equity attributable to
shareholders 137,812 123,948 131,731
=========== =========== =============
Liabilities
Loans and borrowings 23,460 26,798 26,357
Trade and other payables 33,912 33,727 35,114
Deferred tax liabilities 12,474 12,639 12,932
Contingent deferred consideration 2,850 1,176 3,169
Non-current liabilities 72,696 74,340 77,572
Loans and borrowings 3,378 3,397 3,404
Trade and other payables 27,881 25,300 33,681
Current tax payable 1,051 1,626 426
Employee benefits 6,870 3,147 5,492
Contingent deferred consideration 1,584 2,677 859
Current liabilities 40,764 36,147 43,862
Total liabilities 113,460 110,487 121,434
----------- ----------- -------------
Total equity and liabilities 251,272 234,435 253,165
=========== =========== =============
Consolidated statement of cash flows (unaudited)
6 months 6 months
ended 31 ended 31
August 2017 August
2016
GBP'000 GBP'000
Cash flows from operating
activities
Profit for the period 4,578 5,008
Adjustments for:
Net finance costs 839 (295)
Depreciation of property,
plant and equipment 1,161 892
Amortisation of intangible
assets 5,384 4,369
Increase in deferred consideration 1,023 439
Equity settled share-based
payment transactions 1,006 1,077
Grant income (596) (776)
Share of loss on associate -
Tax expense 1,729 2,024
------------- ----------
15,124 12,738
Changes in:
Trade and other receivables 1,687 1,057
Trade and other payables (3,794) (1,407)
------------- ----------
Cash generated from operating
activities 13,017 12,388
Taxes paid (3,471) (3,577)
------------- ----------
Net cash from operating activities 9,546 8,811
Cash flows from investing
activities
Interest received 1 1
Acquisition of other investments
and associates (950) (1,902)
Net increase in loans to (2,167) -
other investments
Acquisition of property,
plant and equipment (1,442) (956)
Acquisition of intangible
assets (3,766) (3,686)
Deferred consideration paid (1,237) (480)
Net cash used in investing
activities (9,561) (7,023)
Cash flows from financing
activities
Proceeds from issue of share
capital 3,344 2,090
Repayment of borrowings (1,812) (1,634)
Payment of finance lease
liabilities (30) (31)
Interest paid (490) (599)
Dividends paid (3,030) (2,839)
Net cash from financing activities (2,018) (3,013)
Net increase/(decrease) in
cash and cash equivalents (2,033) (1,225)
Cash and cash equivalents
at 1 March 16,250 15,100
Effects of exchange rate
changes on cash held (479) 13
Cash and cash equivalents
at 31 August 13,738 13,888
------------- ----------
Notes to the Interim Results
1 Basis of Preparation
The results for the six months ended 31 August 2017 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 28 February 2017.
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 28
February 2017 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 28 February 2017 have
been delivered to the Registrar of Companies.
2 Segmental Reporting
Revenue by industry
2017 2016
GBP'000 GBP'000
FinTech 66,848 56,691
MarTech 18,260 14,097
Other 2,729 1,568
______ ______
Total 87,837 72,356
______ ______
Revenue by category
2017 2016
GBP'000 GBP'000
Managed services and consulting 35,636 32,887
Software 52,201 39,469
______ ______
Total 87,837 72,356
______ ______
Geographical location analysis
2017 2016
GBP'000 GBP'000
UK 28,978 24,403
Rest of Europe 14,317 11,026
Americas 34,781 32,823
Australasia 9,760 4,104
______ ______
Total 87,837 72,356
______ ______
3 Dividends
An Interim Dividend of 7.0p per share will be made for the six
months to 31 August 2017. This will be paid to shareholders on 6
December 2017 to shareholders on the register on 15 November 2017.
The shares will be marked Ex-Dividend on 16 November 2017.
4 Earnings per Share
Basic earnings per share for the six months ended 31 August 2017
has been calculated on the basis of the reported profit after
taxation of GBP4.6m (H1 2017: GBP5.0m) and the weighted average
number of shares for the period of 25,135,875 (H1 2017:
24,461,620). This provides basic earnings per share of 18.2 pence
(H1 2017: 20.5 pence).
Diluted earnings per share for the six months ended 31 August
2017 has been calculated on the basis of the reported profit after
taxation of GBP4.6m (H1 2017: GBP5.0m) and the weighted average
number of shares after adjustment for the effects of all dilutive
potential ordinary shares 26,790,129 (H1 2017: 25,867,614). This
provides diluted earnings per share of 17.1 pence (H1 2017: 19.4
pence).
The Board considers that adjusted earnings is an important
measure of the Group's financial performance. Adjusted earnings in
the period was GBP9,208k (H1 2017: GBP7,498k), which excludes the
amortisation of acquired intangibles of GBP2,335k, (H1 2017:
GBP2,376k) share-based payments of GBP1,006k (H1 2017: GBP1,077k),
acquisition costs of GBP1,364k (H1 2017: GBP492k), loss on foreign
currency translation of GBP350k (H1 2017: gain GBP898k), share of
loss of associate GBP41k (H1 2017: GBPnil) and associated taxation
impact of these adjustments of GBP466k (H1 2017: GBP557k). Using
the same weighted average of shares as above provides adjusted
basic earnings per share of 36.6 pence (H1 2017: 30.7 pence) and
adjusted diluted earnings per share of 34.4 pence (H1 2017: 29.0
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 VQLFBDFFXFBB
(END) Dow Jones Newswires
November 07, 2017 02:00 ET (07:00 GMT)
Fd Technologies Public (LSE:FDP)
Historical Stock Chart
From Mar 2024 to Apr 2024
Fd Technologies Public (LSE:FDP)
Historical Stock Chart
From Apr 2023 to Apr 2024
