Losses widened at Newry-headquartered FD Technologies in the six months to the end of August, ahead of the company’s divestment of one of the core arms of its business.
Revenue for the six-month period fell 7 per cent to £118.2 million (€141 million) in the first half of the year. Group adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) was £10.5 million, down from £14.2 million a year earlier on revenue performance and increased investment in research and development.
The company reported a loss of £11.1 million for the period to August 31st 2024, widening from £1.6 million in the first-half of it previous fiscal year. That was attributed in part to an increase in software amortisation costs from previous years’ investment in research and development.
In October, the company agreed to sell its First Derivatives division to US software company EPAM for £230 million, a deal that is expected to complete in December. First Derivative revenue was £78.8 million in the first half of the year, down 2 per cent compared to the previous six-month period.
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That will leave FD Technologies to focus on KX, another arm of the group, as its sole continuing operation and retaining around £54 million of the £205 million net divestment proceeds from the deal.
Revenue in KX business increased 5 per cent to £39.5 million in the six month period, with annual recurring revenue rising 8 per cent to £74.6 million.
FD said it remained confident in its full-year outlook for 2025 as its KX unit had a strong pipeline in the second half of the year and into the coming year, with expansion and new opportunities across capital markets, aerospace and defence, and semiconductor manufacturing.
“We have made significant strategic and operational progress in the first half, with the divestment of First Derivative and strong execution in KX,” said FD chief executive Seamus Keating.
“Following the completion of the sale of First Derivative, we expect to return cash to shareholders, in line with our disciplined approach to capital allocation, and KX will be a pure-play, high-growth software business; fully funded and well-positioned to capitalise on the significant and growing global market opportunity.”
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