FD Technologies Regulatory News (FDP)

22 Sep 2005 07:00

First Derivatives PLC22 September 2005 First Derivatives plc (FDP) Interim results for the six months ended 31st August 2005 22nd September 2005 The principal activities of FDP are the provision of a range of support servicesto the investment banking market and the derivatives technology industry and theprovision of its own range of e-business applications. Financial Highlights • Turnover £2.744 million (2004: £1.722 million) + 59% • Reported Profit before tax £0.651 million (2004: £0.308 million) + 111% • Normalised Profit before tax and amortisation £0.741million (2004: £0.398 million) + 86% • Normalised Earnings per share 4.4p (2004: 2.6p) + 69% Business Highlights • Continued upturn in activity in the first half of the year • Increased staff utilisation in capital markets activities • Further Kx sales to existing and new customers • Momentum carrying forward in the second half of the year David Anderson, Chairman of FDP commented: "The growth in business experienced in the second half of the last financialyear continued in the first half of the current year and the outlook for thefull year is extremely encouraging." For further information please contact: First Derivatives Corporate Synergy Parkgreen CommunicationsBrian Conlon Luke Ahern Justine Howarth / Victoria ThomasManaging Director T: 020 7448 4430 T: 020 7493 3713T: 028 3025 2242 www.firstderivatives.com First Derivatives plc (FDP) Interim results for the six months ended 31st August 2005 CHAIRMAN'S STATEMENT The Company announces an increased interim pre-tax profit of £0.651 millioncompared with £0.308 million in the corresponding period of the previous year.Revenues were £2.744 million (2004: £1.722 million) and earnings per shareincreased by 105% to 3.7p (2004: 1.8p). Profit before tax and amortisation was£0.741 million compared with £0.398 million in the corresponding period of theprevious year. The Board has decided to continue its policy for the time being of only paying afinal dividend. If trading in the second half reflects the experience in thefirst half the Board would anticipate paying a final dividend at an increasedrate to the previous year. There has been a further increase in our capital markets activity and with thegreater utilisation of staff this has led to a further increase inprofitability. We have recently announced a number of new contracts includingEDS from which we should start to benefit in the second half of the year andother contracts are currently under negotiation. The relationship with Kx is strong and there has been a further increase insales of Kx products to both existing and new customers. The Company has ahealthy sales pipeline and it continues to benefit from consultancy workgenerated on the back of sales of Kx products. Further partnership arrangementsare under discussion which if successfully concluded should benefit the Companyin the future. The e-Business activity has continued at a low level and whilst profitable it isnot anticipated it will be a major profit contributor in the current financialyear. Other points worth noting which give us confidence in our position include: • Significant recurring revenue streams which gives us earnings visibility • Strong balance sheet • Generation of significant cashflow from our operations • In-house R&D is close to commercial exploitation • Investing in property to house employees based on site in London and New York, in lieu of paying for hotels, helps further strengthen the balance sheet The growth in business experienced in the second half of the last financial yearcontinued in the first half of the current financial year and the outlook forthe full year is extremely encouraging. Profit and Loss Account (unaudited) For the period ended 31 August 2004 6 months ended 31 6 months ended 31 12 months ended 28 August 2005 August 2004 February 2005 £'000 £'000 £'000 Turnover 2,744 1,722 3,793 Cost of sales (1,747) (1,183) (2,411) Gross profit/(loss) 997 539 1,382 Administrative expenses (297) (255) (560) Other income 23 45 55 Operating profit - continuing operations 723 329 877 Interest receivable 1 6 8 Interest payable and other similar charges (73) (27) (74) Profit on ordinary activities before taxation 651 308 811 Tax on profit on ordinary activities (193) (83) (242) Profit on ordinary activities after taxation 458 225 569 Retained profit brought forward 1,265 877 877 1,560 1,102 1,446 Dividends paid - - (181) Transfer from reserves - - - Retained profit carried forward 1,723 1,102 1,265 Pence Pence Pence Earnings per ShareBasic 3.7 1.8 4.6 Balance Sheet (unaudited) As at 31 August 2004 6 months ended 6 months ended 12 months ended 31 August 2005 31 August 2004 28 February 2005 £'000 £'000 £'000 Fixed AssetsIntangible assets 450 630 540Tangible assets 2,641 2,191 2,143 3,091 2,821 2,683Current AssetsDebtors 1,098 987 1,046Cash at bank and in hand 1,161 323 788 2,259 1,310 1,834CreditorsAmounts falling due within one year (1,491) (863) (1,109) Net current assets 768 447 725 Total assets less current liabilities 3,859 3,268 3,408 CreditorsAmounts falling due after more than one year (1,253) (1,340) (1,289) Provision for liabilities and charges (3) (5) (3) Net assets 2,604 1,923 2,116 Share capital and reservesCalled up share capital 62 62 62Share premium 819 759 789Profit and loss account 1,723 1,102 1,265 Equity Shareholders' funds 2,604 1,923 2,116 Cash Flow Statement (unaudited) For the period ended 31 August 2004 6 months ended 31 6 months ended 31 12 months ended 28 August 2005 August 2004 February 2005 £'000 £'000 £'000 Cash inflow from operating activities 1,043 (43) 617 Return on investment and servicing of finance (72) (21) (66)Taxation - - (160)Capital expenditure (579) (297) (1,318)Equity dividend - (136) - Cash inflow/(outflow) before financing 392 (497) (927) Financing (19) (28) 867 Increase/(decrease) in cash in the period 373 (525) (60) Reconciliation of net cash flow to movement in net debt (unaudited) For the period ended 31 August 2004 6 months ended 31 6 months ended 31 12 months ended 28 August 2005 August 2004 February 2005 £'000 £'000 £'000 Increase/(Decrease) in cash in the period 373 (525) (60)(Increase)/Decrease in debt 36 (79) 93 Change in net debt resulting from cash flows 409 (604) 33Long term loan - (933) (932) Movement in net funds/(debt) in the period 409 (1,537) (899)Net debt at start of the period (622) 277 277 Net debt at end of the period (213) (1,260) (622) Notes to the Interim Results 1. Basis of Preparation The results for the six months ended 31st August 2005 are unaudited and have notbeen reviewed by the auditors. They have been prepared on accounting bases andpolicies that are consistent with those used in the preparation of the financialstatements of the company for the period ended 28th February 2005. The financial statements contained in this report do not constitute statutoryaccounts within the meaning of Section 248 of the Companies (Northern Ireland)Order 1986 (as amended by Article 12 of the Companies (Northern Ireland) Order1990). The results for the period ended 28th February 2005 were reported on bythe auditors and received an unqualified audit report. Full accounts for theperiod ended 28th February 2005 have been delivered to the Registrar ofCompanies. 2. Dividends No dividend is proposed for the period ended 31st August 2005. 3. Earnings per Share The earnings per share for the six months ended 31 August 2005 has beencalculated on the basis of the profit after taxation. The calculation ofearnings per share is based on the profit on ordinary activities. Earnings pershare has been calculated based on 12,390,620 shares outstanding. 4. Reconciliation of operating profit to net cash inflow from operating activities 6 months ended 31 6 months ended 31 12 months ended August 2005 August 2004 28 February 2005 £'000 £'000 £'000 Operating profit 723 308 877Depreciation on tangible fixed assets 42 19 69Amortisation of intangible asset 90 90 180Decrease/(increase) in debtors (52) (381) (445)(Decrease)/increase in creditors 240 (87) (66)Issue of in the money share options - - 2 Net cash inflow/(outflow) from operating activities 1,043 (43) 617 5. Analysis of net changes in debt during the period 6 months ended 31 6 months ended 31 12 months ended 28 August 2005 August 2004 February 2005 £'000 £'000 £'000 Cash in hand and bank 1,161 323 788 Bank overdraft - - - Debt due within one year (121) (234) (121) Debt due after one year (1,253) (1,349) (1289) (213) (1,260) (622) This information is provided by RNS The company news service from the London Stock Exchange