FD Technologies reports net loss of £6.2M for H1 FY24
FD Technologies (LON:FDP) today announced its financial results for the six months ended 31 August 2023.
The Group reported a loss after tax of £6.2 million for the period, compared to a profit after tax of £0.8 million in H1 FY23. Adjusted loss after tax was £1.2 million, decreased from £4.0 million profit in H1 FY23, resulting in a decrease in adjusted diluted loss per share for the period to 4.3p.
Group revenue down 3% to £143 million (down 3% at constant currency), with good growth in KX recurring revenue, a broadly flat performance at FD and a reduction in revenue at MRP, in line with FD Technologies’ expectations.
KX revenue growth of 12% to £37.7 million (H1 FY23: £33.6m), led by recurring revenue up 23% to represent 87% of total KX revenue (H1 FY23: 80%) with reductions in both lower margin services revenue and lower value perpetual license revenue.
First Derivative revenue of £89.1 million, down 1% (H1 FY23: £90.4m), was driven by increased customer caution from lower investment banking revenues; EBITDA margins are expected to be similar to the first half.
MRP revenue was down 33% to £15.7 million (H1 FY23: £23.4m), although Q1 revenue stabilised and Q2 saw some growth compared to Q4 FY23 due to measures FD Technologies has taken to sharpen focus and improve efficiency.
Adjusted EBITDA were down 12% to £14.0 million (H1 FY23: £16.0m), principally due to a weaker comparative performance at MRP.
Net debt amounted to £7.2 million (H1 FY23: £7.4m) as FD Technologies continues its focus on cash management.
At the Group level, FD Technologies expects FY24 revenue to be in the range of £285m to £295m. The additional investment in KX announced today is expected to result in a £9-10m impact to adjusted EBITDA in H2, resulting in FY24 adjusted EBITDA in the range of £24m to £26m.
Looking beyond the current year, FD Technologies says it is pleased with the progress and momentum across the Group, particularly in KX where the partnerships with CSPs and launch of KDB.AI provide confidence in the medium-term outlook to accelerate its growth rates.