FD Technologies reports 12% Y/Y increase in FY23 revenue
FD Technologies (LON:FDP) today announced its financial results for the year ended 28 February 2023.
Group revenue increased 12% to £296 million (up 6% at constant currency), led by good performances at KX and First Derivative, both above full year expectations, balanced by a reduction in revenue at MRP.
KX revenue grew 25% to £80.2 million (FY22: £64.4m), with recurring revenue up 47% to represent 72% of total KX revenue (FY22: 61%) and reductions in both lower margin services revenue and lower value perpetual license revenue as the company continues to focus on growing recurring revenue.
First Derivative revenue amounted to £174.3m, up 18% (FY22: £148.0m), driven by FD Technologies’ strategy to deliver more value from its domain and technology expertise and its push into complementary areas such as software engineering.
MRP revenue was down 19% to £41.5m (FY22: £51.1m), resulting from lower spending on demand generation by enterprise customers.
Adjusted EBITDA increased 12% to £34.8m (FY22: £31.0m), following investment in people and systems, including the successful implementation of an Oracle ERP system, to enable the Group to scale.
The Group reported a loss before tax of £1.2m for the year, compared to a profit of £9.0m in FY22. The major factors were restructuring costs, particularly at MRP, the cost of implementing the Group’s new Oracle ERP system and one-off costs to address legacy employee tax liabilities while on assignment.
The Group reported a loss after tax of £4.0m for the year, compared to a profit after tax of £6.4m in FY22. Adjusted profit after tax was £9.9m, an 8% increase on the prior year, resulting in a 9% increase in adjusted diluted earnings per share for the period to 35.3p.
In terms of outlook, FD Technologies forecasts FY24 revenue in the range of £315m to £325m at the Group level, with adjusted EBITDA in the range of £38m to £40m.