(Alliance News) - FD Technologies PLC on Tuesday said a sharp increase in operating expenses hurt its performance in the first half of its current financial year.
The Belfast, Northern Ireland-based consulting services provider said revenue for the six months to August 31 rose 7.0% to GBP128.0 million from GBP119.6 million posted a year earlier, delivered through a combination of improving market conditions, rebound in activity from existing customers, and new client wins.
However, the company swung to a pretax loss of GBP1.6 million from a GBP7.4 million profit a year ago. This is due to an increase in research & development costs to GBP10.7 million from GBP7.7 million year-on-year.
In addition, sales & marketing costs rose to GBP25.0 million form GBP17.5 million, while administrative expenses increased to GBP23.5 million form GBP18.7 million year-on-year.
Loss on foreign currency translation totalled GBP1.4 million versus GBP203,000 a year prior.
"I am very encouraged by the increasing momentum across the business since we announced our accelerated growth strategy in May," said said Chief Executive Seamus Keating.
"The outlook across our businesses is positive, with each business unit expected to meet or exceed its full year growth target."
FD Technologies reiterated revenue guidance for the current financial year in the range of GBP255 million to GBP260 million, with adjusted earnings before interest, tax, depreciation and amortization in the range of GBP31 million to GBP33 million.
For its financial 2021, the company posted revenue of GBP237.9 million and adjusted Ebitda of GBP40.5 million.
AIM-listed FD Technologies shares were trading flat in London on Tuesday morning at 2,015.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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FD Technologies (FDP)