Last checked at 
(Alliance News) - First Derivatives PLC on Tuesday decided against paying a final dividend for its recently ended financial 2020 to mitigate any potential impact from the Covid-19 outbreak, despite reporting a rise in profit and revenue.
The trading software developer also announced the signing of a global partnership agreement with IT services organisation Tata Consultancy Services.
Under the deal, First Derivatives will develop and deploy services based on Kx Technology, which will be targeted at Tata's client base across several industries. Specifically, Kx will be used as the time series database for the collection of fast-moving data from machines.
"We have been impressed with the commitment shown by TCS and excited by the potential to accelerate our route to market across industries that this partnership provides. We look forward to working with TCS by combining their industry and domain expertise and our world-leading Kx platform," said First Derivatives Chief Executive Officer Seamus Keating.
For the year to the end of February, the company's pretax profit rose by 9% to GBP18.3 million from GBP16.7 million the year before, on total revenue that grew also by 9% to GBP237.8 million from GBP217.4 million.
Revenue growth was driven mainly in the Software division, where revenue rose by 13% to GBP148.4 million on growth in recurring software licenses. There was also strong order intake in Managed Services & Consulting, as well significant contract wins in the group's core fintech market.
First Derivatives's total dividend for financial 2020 was 8.5 pence per share, down 69% from 27.0p the prior year.
Looking ahead, First Derivatives said it has made a strong start to its current financial 2021, with a strong pipeline and good momentum. Although Covid-19 has had no material impact to date, the group did note a lengthening of sales cycles.
"The past year has been one of the most significant in the group's history, having to cope with the sudden loss of our founder and CEO, Brian Conlon, and then the challenges posed by Covid-19. I am proud of the way our business has pulled together to address these challenges, working as one to support our customers and position ourselves for the next stage of our growth journey," said Chair Donna Troy.
"Against that backdrop, these results represent a period of solid execution. In the short term, while it is still too early to determine the impact of Covid-19, the group has acted to protect the health and wellbeing of employees, to support the business-critical operations of our customers and to ensure our ongoing financial liquidity," Troy added.
Shares in First Derivatives were down 12% at 2,540.00 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.