Financial data analytics company First Derivatives (FD) has announced its results for the 2020 Fiscal Year (ended February 29, 2020, alongside the reveal of a new global partnership with India-based Tata Consultancy Services (TCS).

First to the Tata deal, FD announced that it has signed a global partnership agreement with Tata Consultancy Services (TCS), a Mumbai, India based leading global IT services, consulting, and business solutions organization. The partnership aims to develop and deploy solutions based on FD’s Kx technology and targeted at TCS’s client base across multiple industries.

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. 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.

Regu Ayyaswamy, Global Head, IoT & Engineering and Industrial Services, TCS said:

“TCS IoT and data and analytics solutions help customers across industry verticals improve manufacturing operations, reimagine business models, and enhance customer experience. Kx complements our real-time data management and AI-based smart analytics offerings, and we are pleased to partner with FD to leverage this technology and ensure further enhanced outcomes for our customers.”

Seamus Keating, CEO, FD commented:

“We have been impressed with the commitment shown by TCS and excited by the potential to accelerate our route to market across industries that this partnership provides. We look forward to working with TCS by combining their industry and domain expertise and our world-leading Kx platform.”

On the financial side of things, FD released Fiscal Year 2020 results (for the year ended February 29, 2020), indicating a 9% rise in Revenues over 2019, and a 13% rise in EPS (see table below).

FD lost its founder and CEO midway through the year, with the passing of Brian Conlon in July 2019 at the age of 53.

2020 FY highlights included:

  • Software revenue up 13% to £148.4m (2019: £130.9m), driven by 23% growth in recurring software license revenue.
  • Significant contract wins in our core FinTech market and progress in our drive to achieve market leadership by building out the capabilities of our solutions.
  • Partner agreements and contract wins across our target markets of automotive, manufacturing and energy as we focus on those markets where Kx provides the greatest competitive advantage, including a global Kx partnership agreement announced separately today with Tata Consultancy Services (TCS).
  • MRP Prelytix subscription revenue up 33% to £25.6m (2019: £19.3m) as we increase the platform’s functionality and it becomes recognised as a leader in its market.
  • Managed services and consulting revenue up 3% to £89.4m (2019: £86.5m) with strong order intake in H2 but lower growth due to a delayed start to two multi-year contracts.
  • Launch of Kx 4.0 with increased performance, security, visualisation and machine learning capabilities to spearhead our push to wide adoption of Kx across industries.
  • Finalisation of the acquisition of the minority shareholdings in Kx Systems, taking 100% ownership, funded by new financing facilities which provide flexibility to support the Group’s growth plans.
  • Appointments of Seamus Keating as Chief Executive Officer and Donna Troy as Chairman in January 2020.
Year to 29 February 2020 2019 Change
Revenue £237.8m £217.4m +9%
Gross profit £101.1m £91.3m +11%
Adjusted EBITDA* £45.5m £38.9m +17%
Profit** before tax £18.3m £16.7m +9%
Reported diluted EPS 54.2p 47.9p +13%
Full year dividend per share 8.5p 27.0p -69%
Net debt *** £49.4m £16.5m