FD Technologies registers rise in revenues in H1 FY22
FD Technologies plc (LON:FDP) today announced its results for the six months ended 31 August 2021.
During the period the Group executed on its strategy and made good progress on its financial targets. Revenue increased by 7% to £128 million, with a stronger underlying performance balanced by a planned reduction in perpetual license revenue and software implementation revenue as FD Technologies target growth in annual recurring revenue.
Adjusted EBITDA was £15 million, down 31% as a result of the investment in KX announced in May 2021 and in line with FD Technologies’ expectations.
FD signed 53 new deals in H1 (H1 FY21: 29) of which 41 were subscription (H1 FY21: 14). This delivered 40% of its full-year target of 25% growth in exit ARR. Since the period end, FD Technologies have signed further deals that took the company c.60% towards its target at the end of October which, when combined with its advanced pipeline, provides it with confidence in achieving its full-year target.
First Derivative had a busy and successful period which resulted in revenue growth of 18%. While there was growth in the market for its services, its performance was driven by a range of its own measures, including the successful launch of the First Derivative brand, improvements to its go-to-market strategy and enhancements to the organisational structure.
On a reported basis, the Group recorded a loss of £2.1m after tax, compared to a profit after tax of £6.1m in the prior period, for the reasons stated above mitigated by a lower tax charge of £0.5m (H1 FY21: £1.4m). Reported diluted loss per share was 7.5p (H1 FY21: 21.8p profit per share).
The adjusted profit after tax for the period of £3.3m (H1 FY21: £8.8m) represented a decrease of 63%.
During the period FD Technologies executed on its investment plan in sales and marketing, R&D and infrastructure to support growth, with encouraging early signs of the potential returns from that investment in the form of strengthened customer and partner engagement.
The positive trends seen in the period have continued into the second half of the financial year with strong pipelines across the business, leaving the Group’s business units on track to meet or exceed their revenue targets.
The Board reiterates that revenue for the current financial year will be in the range of £255m to £260m, with adjusted EBITDA in the range of £31m to £33m.