First Derivatives posts 6% rise in revenues despite Covid-19 crisis

(Sharecast News) - Software and consulting services company First Derivatives reported a rise in revenue for the four months to the end of June despite the coronavirus pandemic.
In an update ahead of its annual meeting, the company said total revenue was 6% higher than the same period last year, "reflecting the group's resilience during a period impacted by Covid-19 across our operations".

Managed services and consulting revenue rose 2% on the prior year as it continued to benefit from the high visibility and repeat nature of its client engagements.

"As expected there has been some deferral of new project engagements, the financial impact of which to date has been partially mitigated by lower recruitment and cost management," it said.

Software revenue increased 8%, led by growth in recurring license and subscription revenue. This was offset by a small decline in perpetual license revenue as new software sales continue to take longer to close in the current climate, it said.

First Derivatives said cash generation was in line with expectations.

"The board continues to believe that it is still too soon to determine the likely outcome for the full year but is encouraged by performance to date and will continue to invest to deliver against the market opportunity.

"The group remains strategically well placed and we are encouraged by the growing demand for Kx streaming analytics from potential customers and partners."

At 0810 BST, the shares were down 1.2% at 2,500p.