Preliminary results for the year ended 28th February 2017

May 16, 2017

First Derivatives plc
(“FD”, the “Company” or the “Group”)
Preliminary results for the year ended 28 February 2017

FD (AIM:FDP.L, ESM:FDP.I) today announces its results for the year ended 28 February 2017.

Financial Highlights

Revenue £151.7m (2016: £117.0m) +30%

Adjusted EBITDA* £28.8m (2016: £23.3m) +24%

Profit before tax £12.5m (2016: £10.4m) +20%

Adjusted** profit before tax £20.8m (2016: £16.8m) +24%

Adjusted** fully diluted EPS 61.3p (2016: 51.7p) +19%

Full year dividend 20.0p per share (2016: 17.0p) +18%

Net debt £13.5m (2016: £15.1m)

Business Highlights

– Strong growth in software revenue, up 47% as a result of new contract wins and continued penetration of the existing customer base
– Further growth and strategic progression in managed services and consulting with increased scale and broader expertise resulting in revenue growth of 11%
– FinTech revenue up 28% to £117.4m (2016: £91.9m), driven by contract wins in software and the breadth of services provided to our global banking client base
– MarTech revenue up 39% to £30.7m (2016: £22.1m), driven by the launch of a subscriptionbased Marketing Cloud platform powered by our Kx technology
– Strategic partnership agreement with Thomson Reuters for the use of Kx to drive the latest version of its Velocity Analytics platform
– Kx established in the retail analytics market with the recruitment of a team of domain experts
– FD named by Glassdoor as one of the top 10 Best Places to Work in the UK
– Post period end, FD signed a contract with a Fortune 500 precision engineering manufacturer for the use of Kx to analyse sensor data
– Secured a collaboration with Airbus Defence and Space to use Kx as a platform to analyse Earth Observation data
– Positive start to the current financial year.

*Adjusted for share based payments and acquisition costs

**Adjusted for amortisation of acquired intangibles, share based payments, acquisition costs and changes in deferred consideration, finance translation income/charges, share of loss on associate (and exceptional taxation for EPS)

Seamus Keating, Chairman of FD, commented:

“During the year we made strong progress on our strategic objectives, while delivering a solid financial performance. Our increasing scale is leading to larger and longer-term managed services and consulting engagements and we are confident this trend will continue as we develop our service capabilities. Demand for the ultra-high analytics processing that Kx delivers continues to grow and this is reflected in a strong pipeline of opportunities across the business. It is clear that the leading performance that Kx delivers in capital markets readily transfers to other end markets, as evidenced by our growth in digital marketing. We are engaged in numerous discussions across industries and believe our products and services are well placed competitively. Consequently we anticipate another year of strong growth.”

For further information, please contact:

First Derivatives plc

Brian Conlon, Chief Executive Officer
Graham Ferguson, Chief Financial Officer
Ian Mitchell, Head of Investor Relations

+44(0)28 3025 2242
https://www.firstderivatives.com/

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
Darius Alexander
Niamh Fogarty

+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.

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