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(Alliance News) - First Derivatives PLC on Thursday said it expects to report full-year earnings in line with market expectations but will not recommend a final dividend to save cash amid the Covid-19 outbreak.
The performance-analytics software developer's revenue is expected to rise 11% to GBP241 million from GBP217.4 million in the year prior.
Adjusted earnings before interest, tax, depreciation and amortisation are guided to rise 18% to GBP46 million from GBP38.9 million.
These results for the year that ended February 29 will be in line with market consensus, First Derivatives said, though its year-end net debt of GBP50 million was better than forecasts of GBP56 million.
First Derivatives said: "To date we have seen no financial impact from the effects of Covid-19. All our services delivery is now being conducted remotely, with no impact on revenue. In our managed services and consulting business the services that we provided prior to Covid-19 are now being delivered remotely with utilisation rates in March 2020 remaining in line with the prior month. We continue to monitor developments closely through close and regular contact with customers across all the markets in which we operate."
The company however, warned that the health crisis could lead to longer sales cycles, but it expects to remain "profitable and cash generative".
"Notwithstanding the assurance provided by our scenario testing, the group has taken a range of measures to mitigate any future potential impact of Covid-19, including suspending non-essential business travel and short-term deferral of the summer graduate intake. In addition, the Executive Directors will not receive a bonus payment relating to the financial year ended February 29, 2020," First Derivatives said.
"In order to preserve the group's liquidity during this period, the board will not recommend a final dividend."
The company is penned to release its annual results on May 19.
First Derivatives was trading 0.2% higher at 2,285.00 pence each on Thursday morning. The stock was up at 2,375.00 earlier in the morning.
By Eric Cunha; ericcunha@alliancenews.com
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