FD Technologies PLC on Tuesday said half-year trading was in line with expectations as it progressed with its divestment of First Derivatives.
The County Down, Northern Ireland-based company provides data analytics and consulting services to finance, technology and energy institutions.
Pretax loss for the six months to the end of August widened to £11.1 million from £1.6 million the year before.
Revenue over the same period fell 6.8% to £118.2 million from £126.8 million, as the firm said its First Derivative business dealt with ‘ongoing macroeconomic uncertainties’, coupled with ‘continued cautious spending trends among capital markets consulting customers’.
This division saw revenue decline 12% on-year to £78.8 million from £89.1 million.
By contrast, revenue for its KX division grew 4.8% to £39.5 million from £37.7 million the price year.
FD Technologies said its half-year performance was in line with expectations.
Shares were up 7.6% to 1,930.00 pence on Tuesday morning in London.
In October, the company struck a deal to sell First Derivatives to Newtown, Pennylvania-based EPAM Systems Inc for £230 million with the firm on Tuesday confirming this deal is expected to close on December 2, resulting in KX becoming its sole continuing operation.
FD Technologies said KX will retain approximately £54 million of the £205 million in net divestment proceeds, with the company expecting to return around £120 million in cash to shareholders following the repayment of £32 million in debt.
FD Technologies added that it will share further details around the mechanism by which capital will be returned to shareholders following the completion of the transaction.
It said it remains confident in its outlook for the full-year for KX of £16 million to £18 million in annual contract value added and 11% to 15% growth in annual recurring revenue.
Looking even further, it expects its compound annual growth rate to accelerate to 25% and to achieve positive earnings before interest, tax, depreciation and amortisation by financial year 2027.
Chief Executive Officer Seamus Keating said: ‘We have made significant strategic and operational progress in the first-half, with the divestment of First Derivative and strong execution in KX.
‘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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