Newry FD Technologies boosts turnover but pre-tax profit takes a hit

   2023-05-23 13:05

Strong performances by its Kx software and First Derivative digital consulting divisions drove growth for FD Technologies plc in the year to February 28, 2023.

But MRP sales took a dip, and the business made a pre-tax loss of £1.2m due to restructuring costs, implementing a new Oracle ERP system and addressing legacy employee tax liabilities. A pre-tax profit of £9m was reported for the previous financial year.

The firm was started by late fintech entrepreneur Brian Conlon in 1996 with a £5,000 credit union loan in his mother’s spare bedroom.

It acquired Philadelphia-based MRP in 2008 to accelerate expansion in the US and sectors outside of capital markets, followed by Kx Systems and Prelytix in 2018.

Still headquartered in Newry, FD Technologies now employs 3,000 people in 14 locations across Europe, North America and Asia Pacific.

Kx, which provides software to accelerate AI-driven innovation, saw its sales climb 25% to £80.2m with recurring revenue up 47% to 72% of all sales in the division.

First Derivative supplies consulting services to drive digital transformation in financial services and capital markets and posted a sales increase of 18% to £174.3m.

MRP, which provides technology-enabled services for enterprise demand generation, saw its revenue fall by 19% to £41.5m as a result of lower spending on demand generation by enterprise customers.

FD Technologies said it is well placed to deliver sale in the range of £315m to £325m in FY24.

Seamus Keating, CEO of FD Technologies, said: “We are pleased with a year of strong execution on our strategy, with KX and First Derivative beating our expectations for FY23.

“Our price to performance advantage is particularly compelling for the hyperscale cloud providers, as evidenced by our partnerships with market leaders Microsoft and AWS.

“First Derivative also performed strongly in FY23, delivering impressive revenue growth of 18% for the period. We continue to see multi-year strategic growth drivers that underpin demand for our services.

“We have set ourselves ambitious but sustainable growth targets for the years ahead which will ensure we are focused on driving high-quality recurring revenue growth from an expanding list of customers across a wide range of industries, while generating value for shareholders.”

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