First Derivatives continues to trade positively in H2 FY20

Maria Nikolova

The Board expects to report results in line with company-compiled consensus forecasts of £241 million of revenue and £46 million of adjusted EBITDA.

Fintech company First Derivatives plc (LON:FDP) today provided a trading update, stating that it continued to trade positively in the second half of the financial year to end-February 2020.

As a result, the Board expects to report financial results in line with company-compiled consensus forecasts of £241 million of revenue and £46 million of adjusted EBITDA. Net debt at the period end was £50 million, which was better than the consensus forecast of £56 million.

The company says that to date it has seen no financial impact from the effects of COVID-19. All of its services delivery is now being conducted remotely, with no impact on revenue.

As at March 31, 2020, First Derivatives had gross cash available to it of £64 million. This included £35 million of funds drawn down on March 24, 2020 from the Group’s available finance facilities, with the funds placed on deposit to provide further comfort on liquidity should conditions deteriorate markedly. First Derivatives says it has a further £15 million in undrawn revolving credit facilities available to it.

Let’s recall that, for the six months ended August 31, 2019, the Group saw software revenue rise 13% to £71.4 million, driven by 19% growth in recurring software license revenue. Managed services and consulting revenue was up 7% to £45.2 million.

During the period, First Derivatives completed the acquisition of the minority shareholdings in Kx Systems, taking 100% ownership.

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