Final Results

First Derivatives PLC
03 June 2004


First Derivatives plc (FDP)
Preliminary results for the year ended 29th February 2004


3rd June 2004


The principal activities of FDP are the provision of a range of support services
to the investment bank market, the derivatives technology industry and the
provision of its own range of e-business applications.


Financial highlights

•          Turnover £2.679 million (2003: £1.649 million)  + 62.5%

•          Profit before tax and amortisation £757,000 (2003: £406,000 ) + 86.5%

•          Earnings per share 3.3p (2003: 2.4p) + 37.5%

•          Maiden dividend proposed of 1.1p per share

•          Cash balances as at 29th February 2004 of £848,000


Business highlights

•          Upturn in activity in the second half of the year

•          FDP has now sold Kx database technology into 8 out of the 10 largest
           global investment banks in the USA

•          Since the year end, distribution agreements signed with TickData and
           IT & E

•          Positive start to the current financial year

David Anderson, Chairman of FDP, commented:

'The increase in activity experienced in the second half of the financial year
has continued into the early part of the current year.  This increase is in all
areas of the Company's activity and the Board looks to the coming year with
confidence.'


For further information please contact:

First Derivatives               Corporate Synergy     Parkgreen Communications
Brian Conlon                    Luke Ahern            Justine Howarth
Managing Director               T: 020 7645 5440      T: 020 7493 3713
T: 02830 252242

www.firstderivatives.com

First Derivatives plc
Preliminary results for the year ended 29th February 2004



Chairman's statement


2003/2004 has been a successful year for the company with significant
development in all areas of activity.  This has been reflected in improved
profitability of the company with profit before tax, and amortisation of
£757,000 compared with £406,000 in the previous year.  After amortisation,
profit before tax was £577,000 compared with £406,000 in the previous year.



Earnings per share increased by 37.5% from 2.4p to 3.3p.  In light of this
substantial improvement and the enhanced cash position of the company we are
delighted to recommend the payment of a maiden dividend of 1.1p per share. As
stated in our prospectus the Directors will pursue a dividend policy which
reflects the company's profitability, subject to the funds required to finance
future growth.



Capital Markets experienced an upturn in activity in the second half of the year
at the same time rates hardened after four years of weakness.  Recurring
revenues from support contracts during the year represented 53% of turnover.



There was a further year of growth in the sale and support of Kx products.  FDP
has now sold Kx database technology into 8 of the 10 largest global investment
banks in the USA.  This relationship has also helped to generate business for
FDP's Capital Markets activities.  The sale and support of Kx products now
represents a significant part of FDP's activities.  The company is in
discussions with several parties seeking a similar relationship and we have
recently signed agreements with TickData and IT and E.



The E-Business division was established with the acquisition of the IPR of
e-hub.com plc at the end of the last financial year.  E-Business sales are being
generated principally from a joint venture with BT.  Sales have been slow but we
are starting to see an increase in the level of this activity as BT starts to
market the product suite.  However, we do not anticipate that this activity will
be profitable at least until the year ended February 2006.



During the course of the year the company purchased residential property in
London to provide accommodation for staff supporting the increased level of
activity.  A further two properties were acquired after the year end.  These
properties have been funded out of the company's cash resources supported by
term loans.  Shareholders' funds now stand at £1.698 million compared with
£1.376 million a year ago.  Cash deposits at year end amounted to £848,000.



The increase in activity experienced in the second half of the financial year
has continued into the early part of the current year.  This increase is in all
areas of the company's activity and the Board looks to the coming year with
confidence.


First Derivatives plc
Preliminary results for the year ended 29th February 2004


Profit and loss account
Year ended 29 February 2004


 
                                     Year ended      Year ended 
                                    29 February     28 February 
                                           2004            2003 
                                          £'000           £'000 
 
Turnover - continuing operations          2,679           1,649 
Cost of sales                            (1,724)         (1,186) 
                     
Gross profit                                955             463 
Administrative expenses                    (497)           (284) 
Other income                                142             236 
                     
Operating profit - continuing operations    600             415 
Interest receivable                           8               9 
Interest payable and other similar charges  (31)            (18) 
 
Profit on ordinary activities before 
taxation                                    577             406 
Tax on profit on ordinary activities       (165)           (113) 
 
Profit on ordinary activities after 
taxation                                    412             293 
Retained profit brought forward             600             307 
                     
                                          1,012             600 
 
Dividends                                  (135)              - 
Retained profit carried forward             877             600 
 
Earnings per share - basic                  3.3p            2.4p 
                   - diluted                3.3p            2.4p 
                     
 


First Derivatives plc 
Preliminary results for the year ended 29th February 2004 
 
Balance sheet 
Year ended 29 February 2004 
 
                                             At 29 February     At 28 February 
                                                       2004               2003 
                                             £'000     £'000    £'000     £'000 
Fixed assets 
Intangible assets                                        720                900 
Tangible assets                                          808                313 
Fixed asset investment                                    74                  - 
                     
                                                       1,602              1,213 
Current assets 
Debtors                                        606                741 
Cash at bank and in hand                       848                555 
                     
                                             1,454              1,296 
Creditors - amounts falling due 
within one year                               (828)              (913) 
                     
Net current assets                                       626                383 

Total assets less current liabilities                  2,228              1,596 
 
Creditors - amounts falling due 
after more than one year                                (523)              (215) 
 
Provisions for liabilities and charges                    (7)                (5) 
 
Net assets                                              1,698             1,376 

Share capital and reserves 
Called-up share capital                                    62                61 
Shares to be issued                                         7                 - 
Share premium account                                     752               715 
Profit and loss account                                   877               600 

Equity shareholders' funds                              1,698             1,376 
                     
 
 
First Derivatives plc 
Preliminary results for the year ended 29th February 2004 
      
Cash flow statement 
Year ended 29 February 2004 
 
                                                        Year ended    Year ended 
                                                       29 February   28 February 
                                                              2004          2003 
                                                             £'000         £'000 
Cash inflow from operating 
activities                                                   1,065           694 
 
Returns on investment and servicing 
of finance                                                     (23)           (9) 
Taxation                                                      (269)         (170) 
Capital expenditure                                           (481)         (412) 
                     
Cash inflow before financing                                   292           103 
 
Financing                                                        1           720 
                     
Increase in cash in the period                                 293           823 
                     
 
 
 
First Derivatives plc 
Preliminary results for the year ended 29th February 2004 
 
Notes 
Year ended 29 February 2004 
 
 
1     Tax on profit on ordinary activities 
                                                       Year ended     Year ended 
                                                      29 February    28 February 
                                                             2004           2003 
                                                            £'000          £'000 
 
UK corporation tax for the period                             170            136 
Adjustments relating to earlier years                          (7)           (18) 

Total current tax charge                                      163            118 
Deferred tax                                                    2             (5) 
 
                                                              165            113 
                     
 
 
The current tax charge for the period is lower than the standard rate of 
corporation tax in the UK. The differences are explained below: 
 
                                                       Year ended     Year ended 
                                                      29 February    28 February 
                                                             2004           2003 
                                                            £'000          £'000 
Current tax reconciliation 
Profit on ordinary activities before tax                      577            406 
 
Current tax at 30% (2003: 30%)                                173            122 
 
Effects of: 
Expenses not deductible for tax purposes                       23              9 
Capital allowances for period in excess of depreciation        (3)             5 
Other timing differences                                        1              - 
Small companies relief                                        (24)             - 
Adjustments to tax charge in respect of previous periods       (7)           (18) 
                     
Total current tax charge                                      163            118 


The directors are not aware of any issues that will significantly impact on the
future tax charge.


2     Earnings per ordinary share

      Basic

The calculation of basic earnings per share is based on the profit on ordinary
activities after taxation and before deduction of dividend appropriations in
respect of equity shares, namely £412,000 (2003: £293,000).  The weighted
average number of ordinary shares for the year ended 29 February 2004 and
ranking for dividend was 12,302,807 (2003: 12,120,014).

                          Year ended               Year ended
                         29 February              28 February
                                2004                     2003
                     Pence per share          Pence per share

Basic earnings per share         3.3                      2.4


Diluted

The calculation of diluted earnings per share is based on the profit on ordinary
activities after taxation and before deduction of dividend appropriations in
respect of equity shares, namely £412,000 (2003: £293,000).  The weighted
average number of ordinary shares for the year ended 29 February 2004 and
ranking for dividend was 12,662,866 (2003: 12,214,408).


                          Year ended               Year ended
                         29 February              28 February
                                2004                     2003
                     Pence per share          Pence per share

Diluted earnings per share       3.3                      2.4



3     DIVIDENDS



It is proposed that a final dividend of 1.1p (net per share) be paid on 12 July
2004 to Shareholders on the register of members at the close of business on 11
June 2004.




4.    FINANCIAL INFORMATION



The financial information contained in this preliminary announcement of results
does not constitute the company's statutory accounts for the year ended 29
February 2004. The financial information has been prepared using consistent
accounting policies. The accounts for the year ended  29 February 2004 will be
delivered to the Registrar of Companies.



The statutory accounts for the year ended 29 February 2004 have been reported on
by the company's auditors: the reports on these accounts were unqualified and
they did not contain a statement under section 237(2) or (3) of the Companies
Act 1985.



This announcement was approved by the Board of FDP on 3rd June 2004.



Copies of the full statutory accounts will be despatched to shareholders as soon
as practicable and will be available from the offices of the Company's nominated
adviser, Corporate Synergy Plc at 12, Nicholas Lane, London EC4N 7BN.








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