First Derivatives marks 6% Y/Y rise in revenues in four months to end-June 2020
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.
Fintech company First Derivatives plc (LON:FDP) today issued a statement ahead of its Annual General Meeting, with the statement including an update on the Group’s progress in the current financial year for the four months ending June 30, 2020.
Total revenue was 6% ahead of the prior year period. Managed services and consulting revenue was up 2% on the prior year period as FD 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.
Software revenue increased by 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.
Cash generation during the period was in line with expectations.
Today, the Board said it 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.
In April this year, First Derivatives said it continued to trade positively in the second half of the financial year to end-February 2020. Back then, the Board said it 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.
