PROFITS AT trading software and banking consultancy specialist First Derivatives grew 5 per cent to £3.4 million in the first half of its financial year, the company’s latest figures show.
Newry, Co Down-based First Derivatives said that turnover grew 26 per cent in the six months ended August 31st to £22.4 million from £17.7 million during the same period in 2010.
Its operations generated profits of £3.6 million during the first half, a 16 per cent increase on the £3.1 million earned during the comparable six-month period last year.
Profits before tax increased by 5.1 per cent in the first half to £3.4 million from £3.2 million in 2010.
First Derivatives has two main businesses. It provides consultancy services to banks and financial services companies in Europe, America, Australia and the Far East. It also develops and sells software used largely in automated or algorithmic trading on stock exchanges and other markets.
Its customers include brokers, trading desks and hedge funds.
Chief executive Brian Conlon established the business in 1996 in Newry after returning there from a period working in merchant banking and financial services in London. The company floated in 2002 and has a dual listing in Dublin and London.
Software sales accounted for £7 million of its total turnover in the first half of its financial year, while consulting contributed the £15.4 million balance.
Its biggest market is Britain, which was responsible for £10.2 million of its turnover during the first half. America provided £8.7 million of its total sales during the period.
Chairman David Anderson said yesterday the company signed a number of contracts during the first half that it expects to begin generating revenues during the second six months of its financial year.
“Despite a background of market turbulence, we have made a strong start to the second half and expect to report profits for the year in line with market expectations,” he said.
Earnings per share were up 4.5 per cent at 16.3 pence sterling in the first half from 15.6 pence during the same period in 2010.
