First Derivatives signs partnership agreement with Tata Consultancy Services
The partnership will see the development and deployment of solutions based on Kx technology and targeted at TCS’s client base across multiple industries.
Fintech company First Derivatives plc (LON:FDP) today announces that it has signed a global partnership agreement with Tata Consultancy Services (TCS), a major global IT services, consulting, and business solutions organization, to develop and deploy solutions based on Kx technology and targeted at TCS’s client base across multiple industries.
Under the terms of this partnership, Kx will be used within TCS’s transformative solutions as the time series database for the collection of fast-moving data from machines.
TCS has been the growth and transformation partner to leading corporations across industry verticals, helping them harness the power of IoT, AI and Machine learning to reimagine their business models.Using its IoT framework Bringing Life to Things™, TCS has been helping customers build predictive and self-aware systems that can sense and intelligently respond to changes in the physical environment.
Also today, First Derivatives reported its results for the full year to end-February 2020. Group revenue for FY20 increased organically by 9% to £237.8 million (2019: £217.4m) with software revenue increasing by 13% and managed services and consulting revenue by 3%. Software growth was led by growth in recurring and subscription license revenue, balanced by a reduction in perpetual license revenue. Gross margin increased slightly to 43% (2019: 42%) as growth was weighted to higher margin software revenue.
Reported profit before tax increased by 9% to £18.3 million (2019: £16.7m) and adjusted profit before tax decreased by 6% to £25.9 million (2019: £27.5m). Both were held back by an increase of £2.2 millioon in interest charges following the completion of the acquisition of the minority interest in Kx Systems Inc, with a further £1.0m of additional interest relating to IFRS 16 lease costs.
Reported profit after tax increased by 13% to £14.9 million (2019: £13.2m) and reported diluted earnings per share also increased by 13% to 54.2p per share (2019: 47.9p).
The adjusted profit after tax for the year was £21.3 million (2019: £22.9m), a decrease of 7%. The major factors impacting earnings per share were the higher interest charge and an increase in the Group’s adjusted tax rate to 17.8% (2019: 16.8%).
