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Revenues up 44% at software company

A Newry-based financial software company has recorded a massive 44% rise in revenues to almost £37m over the past year.

First Derivatives, which is |listed on the AIM stock market, provides software and consultancy to global investment banks and hedge funds and also has |operations in London, New York, Stockholm, Shanghai, Singapore, Toronto, Sydney, Dublin, and Hong Kong.

The firm also revealed that pre-tax profits increased by 15.1% to £6.5m compared to £5.6m in 2010 as it gave its results for the 12 months to the end of February this year.

The company increased staff levels to over 550 from 385, and in March secured a £4.3m funding commitment from Invest NI for the creation of 359 new jobs over next three years.

Software sales increased by 104.3% to £12.511m from £6.124m and consultancy sales increased by 25.2% to £24.229m.

During the year, First Derivatives acquired LakeFront Data Ventures Inc, set up five new data centres in the UK, USA and Republic of Ireland and has 40 software clients now generating revenue.

David Anderson, chairman of First Derivatives, said the company will not be resting on its laurels and would be continuing to invest.

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“We are continuing to make a substantial investment in the development of all the group’s activities as we build a robust organisation with a strong asset base for growth,” he said.

“The past year has been one of further building and proving our software assets. Soft product launches will continue to occur in the first half of the current year and we expect to follow this with sustained marketing in the second half as we aim to capitalise on the investments made.

“We continue to have a strong pipeline of prospects and are pleased with how the group is now positioned to further penetrate its target market.

“We have made a strong start to the current year and expect to be able to report further progress in the year to February 2012.”

First Derivatives founder and managing director Brian Conlon won the title of Ernst & Young Entrepreneur of the Year for Ireland last year. He will compete in the World Entrepreneur of the Year Competition in Monte Carlo next month.

Mr Conlon set up the company in 1996. He had earlier trained as an accountant in KPMG but left to work for Morgan Stanley, running a trading desk in London.

He went on to writing trading systems as a financial engineer for software company SunGard, and travelling between Silicon Valley, Germany, France and other parts of Europe before setting up First Derivatives.