Interim Results

First Derivatives PLC
18 October 2004

First Derivatives plc (FDP)
Interim results for the six months ended 31st August 2004

18 October 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 £1.722 million (2003: £1.207 million)  + 43%

•          Profit before tax £308,000 (2003: £251,000 ) +23%

•          Profit before tax, depreciation and amortization £459,000 (2003:
           £376,000) +22%

•          Earnings per share 1.8p (2003: 1.5p) +20%

Business highlights

•          Continued upturn in activity in the first half of the year

•          Strengthened management team in New York

•          Significant investment in development  of own software


David Anderson, Chairman of FDP, commented:

'The benefits of the initiatives taken during the first half are already
starting to reap rewards and the Directors look forward to the outcome for the
full 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: 028 3025 2242

www.firstderivatives.com

First Derivatives plc (FDP)
Interim results for the six months ended 31st August 2004


CHAIRMAN'S STATEMENT

The Company announces an increased interim profit pre-tax profit of £308,000
compared with £251,000 in the corresponding period of the previous year.
Revenues were £1.722 million (2003: £1.207 million) and earnings per share
increased by 20% to 1.8p (2003: 1.5p).   Profit before tax, depreciation and
amortisation was £459,000 compared with £376,000 in the corresponding period of
the previous year.

The Board has not recommended an interim dividend but based on current trading
intends to recommend a final dividend at least at a similar level to that paid
in respect of the previous financial year.

The upturn in activity experienced in the second half of the last financial year
by Capital Markets continued in the first half of the financial year.  During
the period steps were taken to strengthen the management team in New York the
benefits of the changes are already starting to show through in increased
Capital Markets and Kx activity.  There has been an increase in the level of
interest in Kx products and several substantial sales opportunities are
currently being progressed which if concluded should be reflected in the results
for the second half of the year.

The e-Business activity has continued at a low level and growth in this area is
largely dependant on BT sales staff.  There has been a recent modest upturn in
activity in this area but as previously indicated we do not anticipate that this
activity will be profitable at least until the next financial year at the
earliest.

During the period the Company has made a significant investment in research and
development of software and the benefits of this will not be reflected in
revenues for some six to twelve months.  The Company has adopted a prudent
accounting policy in respect of this expenditure which is expensed as incurred.

The benefits of the initiatives taken during the first half are already starting
to show and the Directors look forward to the outcome for the full year with
confidence.

David Anderson
18th October 2004

First Derivatives plc (FDP)
Profit and Loss Account (unaudited)
For the period ended 31 August 2004
                                                  6 months ended 31      6 months ended 31      12 months ended 29
                                                        August 2004            August 2003           February 2004
                                                              £'000                  £'000                   £'000

Turnover                                                      1,722                  1,207                   2,679

Cost of sales                                               (1,183)                  (790)                 (1,724)

Gross profit/(loss)                                             539                    417                     955

Administrative expenses                                       (255)                  (242)                   (497)

Other income                                                     45                     86                     142

Operating profit                                                329                    261                     600

Interest receivable                                               6                      3                       8

Interest payable and other similar charges                     (27)                   (13)                    (31)

Profit on ordinary activities before taxation                   308                    251                     577

Tax on profit on ordinary activities                           (83)                   (65)                   (165)

Profit on ordinary activities after taxation                    225                    186                     412

Retained profit brought forward                                 877                    600                     600

                                                              1,102                    786                   1,012

Dividends                                                         -                      -                   (135)

Retained profit carried forward                               1,102                    786                     877

                                                              Pence                  Pence                   Pence

Earnings per Share
Basic                                                           1.8                    1.5                     3.3



First Derivatives plc (FDP)
Balance Sheet (unaudited)
As at 31 August 2004
                                                        6 months ended        6 months ended       12 months ended
                                                        31 August 2004        31 August 2003      29 February 2004
                                                                 £'000                 £'000                 £'000

Fixed Assets
Intangible assets                                                  630                   810                   720
Tangible assets                                                  2,191                   798                   882
                                                                 2,821                 1,608                 1,602
Current Assets
Debtors                                                            987                   818                   606
Cash at bank and in hand                                           323                   393                   848
                                                                 1,310                 1,211                 1,454
Creditors
Amounts falling due within one year                              (863)                 (697)                 (828)

Net current assets                                                 447                   514                   626

Total assets less current liabilities                            3,268                 2,116                 2,228

Creditors
Amounts falling due after more than one year                   (1,340)                 (549)                 (523)

Provision for liabilities and charges                              (5)                   (5)                   (7)

Net assets                                                       1,923                 1,562                 1,698

Share capital and reserves
Called up share capital                                             62                    61                    62
Share premium                                                      759                   715                   752
Profit and loss account                                          1,102                   786                   877

Equity Shareholders' funds                                       1,923                 1,562                 1,698


First Derivatives plc (FDP)
Cash Flow Statement (unaudited)
For the period ended 31 August 2003
                                                     6 months ended 31     6 months ended 31    12 months ended 29
                                                           August 2004           August 2003         February 2004
                                                                 £'000                 £'000                 £'000

Cash inflow from operating activities                             (43)                   130                 1,065

Return on investment and servicing of finance                     (21)                  (10)                  (23)
Taxation                                                             -                 (184)                 (269)
Capital expenditure                                              (297)                  (82)                 (481)
Equity dividend                                                  (136)                     -                     -

Cash inflow/(outflow) before financing                           (497)                 (146)                   292

Financing                                                         (28)                  (16)                     1

Increase/(decrease) in cash in the period                        (525)                 (162)                   293



Reconciliation of net cash flow to movement in net debt (unaudited)
For the period ended 31 August 2003
                                                    6 months ended 31     6 months ended 31      12 months ended 29
                                                          August 2004           August 2003           February 2004
                                                                £'000                 £'000                   £'000

Increase/(decrease) in cash in the period                       (525)                 (162)                     293
Decrease in debt                                                 (79)                    15                      37

Change in net debt resulting from cash flows                    (604)                 (147)                     330
Long term loan                                                  (933)                 (375)                   (375)

Movement in net funds/(debt) in the period                    (1,537)                 (522)                    (45)
Net debt at start of the period                                   277                   323                     322

Net debt at end of the period                                 (1,260)                 (199)                     277



First Derivatives plc (FDP)
Notes to the Interim Results

1.         Basis of Preparation

            The results for the six months ended 31st August 2004 are unaudited
and have not been reviewed by the auditors. They have been prepared on
accounting bases and policies that are consistent with those used in the
preparation of the financial statements of the company for the period ended 29th
February 2004.

The financial statements contained in this report do not constitute statutory
accounts within the meaning of Section 248 of the Companies (Northern Ireland)
Order 1986 (as amended by Article 12 of the Companies (Northern Ireland) Order
1990). The results for the period ended 29th February 2004 were reported on by
the auditors and received an unqualified audit report. Full accounts for the
period ended 29th February 2004 have been delivered to the Registrar of
Companies.

2.         Dividends

            No interim dividend is proposed in respect of the year ending 28th
February 2005.

3.         Earnings per Share

The earnings per share for the six months ended 31 August 2004 has been
calculated on the basis of the profit after taxation.  The calculation of
earnings per share is based on the profit on ordinary activities.   Earnings per
share has been calculated based on 12,302,807 shares outstanding.

4.         Reconciliation of operating profit to net cash inflow from operating
activities
                                                        6 months ended     6 months ended 31      12 months ended
                                                        31 August 2004           August 2003     29 February 2004
                                                                 £'000                 £'000                £'000

Operating profit                                                   308                   251                  600
Depreciation on tangible fixed assets                               19                    18                   30
Amortisation of intangible asset                                    90                    90                  180
Decrease/(increase) in debtors                                   (381)                    77                   60
(Decrease)/increase in creditors                                  (87)                 (306)                  188
Issue of in the money share options                                  8                                          7

Net cash inflow/(outflow) from operating activities               (43)                   130                1,065


5.         Analysis of net changes in debt during the period

                                                    6 months ended 31     6 months ended 31    12 months ended 29
                                                          August 2004           August 2003         February 2004
                                                                £'000                 £'000                 £'000

            Cash in hand and bank                                 323                   393                   848
             Bank overdraft                                         -                     -                     -
             Debt due within one year                           (234)                 (108)                  (48)
             Debt due after one year                          (1,349)                 (484)                 (523)

                                                              (1,260)                 (199)                   277


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