Sunshine Reflecting on a Skyscraper - KX

First Derivatives Preliminary Results for the Year Ended 28 February 2019

21 May 2019

FD (AIM: FDP.L, Euronext Growth: FDP.I) today announces its audited results for the year ended 28 February 2019.

Financial Highlights

Year to 28 February	2019	2018	Change
Revenue	£217.4m	£186.0m	+17%
Gross profit	£91.3m	£78.5m	+16%
Adjusted EBITDA*	£38.9m	£34.1m	+14%
Profit** before tax	£16.7m	£12.1m	+38%
Adjusted*** profit after tax	£22.9m	£19.5m	+17%
Adjusted*** fully diluted EPS	83.2p	72.2p	+15%
Reported diluted EPS	47.9p	37.8p	+27%
Full year dividend per share	27.0p	24.0p	+13%
Net debt	£16.5m	£16.2m

*Adjusted for share-based payments and acquisition costs
**Includes foreign currency translation effect and deferred consideration on prior acquisitions
***Adjusted for amortisation of acquired intangibles, share-based payments, acquisition costs, foreign currency translation effect, share of loss on associate and exceptional taxation

Business Highlights

Revenue growth up 17% (2018: 23%) with software license revenue growing by 28% (2018: 25%)
FinTech revenue up 17% to £166.7m (2018: £142.9m), driven by an expansion of services provided to clients and new contract wins including the Canadian Securities Administrators, BitMEX and a major Japanese bank
MarTech revenue up 8% to £41.4m (2018: £38.2m), driven by 25% growth in subscriptions for our Marketing Cloud platform, powered by Kx
Revenue from other markets increased by 85% to £9.3m (2018: £5.0m), further evidencing the initial success of our strategy to penetrate high-value markets such as Industrial Internet of Things, automotive and precision manufacturing
High-profile new client wins across the business including Fingrid, BISTel and Survalent and significant contract expansion and appointment as Innovation Partner with Aston Martin Red Bull Racing
Enhanced partnership and collaboration activity including with Amazon Web Services, Google, H20.ai and CGI
Agreement to acquire the minority shareholdings in Kx Systems, taking 100% ownership by 29 June 2019, funded by new financing facilities on improved terms
Strong momentum into new financial year combined with record pipeline provides confidence in continued organic growth.

Read the full press release here