LONDON (Alliance News) - First Derivatives PLC on Tuesday increased its dividend by more than a quarter after it reported a rise in earnings during the last financial year and said it expects to deliver another year of profitable growth moving forward.
The software provider and consultancy service business reported a 41% rise in revenue in the year to the end of February to GBP117.0 million from GBP83.2 million, helping adjusted earnings before interest, tax, depreciation and amortisation to increase 51% to GBP23.3 million from GBP15.5 million.
Adjusted pretax profit soared 56% to GBP16.8 million from GBP10.8 million, but bottom-line pretax profit was down 41% to GBP10.4 million from GBP17.5 million.
The large fall in reported profit was mainly because First Derivatives booked a GBP9.6 million gain in the previous year from the sale of its investments, which was not repeated in the most recent year.
Gross profit increased to GBP32.6 million from GBP23.7 million the year before, thanks to the large increase in revenue. By business line, consultancy revenue was up 29% to GBP75.0 million, whilst revenue from software was up 69% to GBP42.0 million.
First Derivatives said its dividend for the full year will be 26% higher at 17.0 pence per share from the 13.5 pence paid last year.
Net debt was trimmed during the period to GBP15.1 million at the end of February from GBP15.7 million at the end of February 2015.
First Derivatives Chairman Seamus Keating said the company has made a "strong start" to the current financial year.
"The current financial year has started positively, with continuing high levels of growth in consulting and further progress in software. We are confident that our high level of repeat and recurring revenue provides the foundation for another year of strong, profitable growth," he said.
"In summary, we expect another year of strong growth, at least in line with market forecasts and to continue to invest for growth in later years," he added.
First Derivatives shares were up 0.6% to 1,800.0 pence per share on Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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FD Technologies (FDP)