Interim Results

First Derivatives PLC
26 September 2006




26th September 2006

                             First Derivatives plc
                                   AIM : FDP
                            ('FDP' or 'the Company')

           Interim results for the six months ended 31st August 2006

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

Financial Highlights

•         Turnover £4.178 million (2005: £2.744 million) + 52%

•         Profit before tax £1.173 million (2005: £0.651 million) + 80%

•         Earnings per share 6.2p (2005: 3.7p) + 68%

•         Maiden interim dividend of 1.4p per share


Business Highlights

•         Increased staff utilisation in capital markets activities.

•         Further Kx sales to existing and new customers.

•         Continuing pipeline of R&D products moving to evaluation

•         Improved performance expected to continue during the second half of
          the year.



David Anderson, Chairman of FDP commented:



'The Company has now reached the point where it is starting to exploit its own
software products and is continuing to experience strong demand for Kx products
and services to the capital markets. The Directors regard the outlook for the
year as extremely encouraging.'



For further information please contact:


First Derivatives              Corporate Synergy           Parkgreen Communications
Brian Conlon                   Luke Ahern                  Justine Howarth / Victoria Thomas
Managing Director              T: 020 7448 4430            T: 020 7493 3713
T: 028 3025 2242


www.firstderivatives.com




First Derivatives plc (FDP)
Interim results for the six months ended 31st August 2006



CHAIRMAN'S STATEMENT

The Company announces an increased interim pre-tax profit of £1.173 million
compared with £0.651 million in the corresponding period of the previous year.
Revenues were £4.178 million (2005: £2.744 million) and earnings per share
increased by 68% to 6.2p (2005: 3.7p).

The Board is pleased to announce the payment of a maiden interim dividend.  An
interim dividend of 1.4p per ordinary share will be paid on 16th October 2006 to
those shareholders on the register on 29th September 2006.  The shares will be
ex-dividend on 27th September 2006.

In my statement sent to shareholders in May I referred to the fact that two
major Kx contracts had been signed during the first half of the current year.
Further sales have continued to new and existing customers and the sales
pipeline is encouraging.

Our capital markets activity has achieved a further increase in business levels
resulting in more effective staff utilisation.  We continue to expand our
geographical reach with assignments in Australia, Singapore, Japan and Dublin
undertaken during the period. Appointments were made during the period to
further strengthen the senior management team.

The Company continues to generate a significant cash flow from operations.
Further properties have been acquired during the period for staff accommodation
largely from operational cashflow.The net asset value per share at the end of
the period was 29.6p.

The Company has now reached the point where it is starting to exploit its own
software products and is continuing to experience strong demand for Kx products
and services to the capital markets. The Directors regard the outlook for the
year as extremely encouraging.

David Anderson
Chairman
25th September 2006



Profit and Loss Account (unaudited)
For the period ended 31 August 2006
                                                   6 months ended 31       6 months ended 31      12 months ended 28
                                                         August 2006             August 2005           February 2006
                                                               £'000                   £'000                   £'000

Turnover                                                       4,178                   2,744                   6,313

Cost of sales                                                (2,679)                 (1,747)                 (3,959)

Gross profit/(loss)                                            1,499                     997                   2,354

Administrative expenses                                        (313)                   (297)                   (812)

Other income                                                      38                      23                     101

Operating profit - continuing operations                       1,224                     723                   1,643

Interest receivable                                               14                       1                       7

Interest payable and other similar charges                      (65)                    (73)                   (113)

Profit on ordinary activities before taxation                  1,173                     651                   1,537

Tax on profit on ordinary activities                           (385)                   (193)                   (468)

Profit on ordinary activities after taxation                     788                     458                   1,069

Retained profit brought forward                                2,334                   1,265                   1,446

                                                               3,122                   1,723                   2,515

Dividends paid                                                 (381)                   (181)                   (181)

Transfer from reserves                                             -                       -                       -

Retained profit carried forward                                2,741                   1,542                   2,334

                                                               Pence                   Pence                   Pence

Earnings per Share
Basic                                                            6.2                     3.7                     8.6




Balance Sheet (unaudited)
As at 31 August 2006
                                                        6 months ended        6 months ended       12 months ended
                                                        31 August 2006        31 August 2005      28 February 2006
                                                                 £'000                 £'000                 £'000

Fixed Assets
Intangible assets                                                  270                   450                   360
Tangible assets                                                  4,871                 2,460                 3,439
                                                                 5,141                 2,910                 3,799
Current Assets
Debtors                                                          2,790                 1,098                 2,251
Cash at bank and in hand                                           860                 1,161                 1,061
                                                                 3,650                 2,259                 3,312
Creditors
Amounts falling due within one year                            (2,910)               (1,491)               (2,082)

Net current assets                                                 740                   768                 1,230

Total assets less current liabilities                            5,881                 3,678                 5,029

Creditors
Amounts falling due after more than one year                   (2,102)               (1,252)               (1,717)

Provision for liabilities and charges                                -                   (3)                     -

Net assets                                                       3,779                 2,423                 3,312

Share capital and reserves
Called Up Share Capital                                             64                    62                    64
Share Premium & Shares To Be Issued                                974                   819                   914
Profit and loss account                                          2,741                 1,542                 2,334

Equity Shareholders' funds                                       3,779                 2,423                 3,312




Cash Flow Statement (unaudited)
For the period ended 31 August 2006
                                                     6 months ended 31     6 months ended 31    12 months ended 28
                                                           August 2006           August 2005         February 2006
                                                                 £'000                 £'000                 £'000

Cash inflow from operating activities                            1,290                 1,043                 1,606

Return on investment and servicing of finance                     (51)                  (72)                 (106)
Taxation                                                             -                     -                 (232)
Capital expenditure                                            (1,410)                 (398)               (1,389)
Equity dividends paid                                            (381)                 (181)                 (181)
Investment in Shares                                              (76)                     -                    -

Cash inflow/(outflow) before financing                           (628)                   392                 (302)

Financing                                                          428                  (19)                   574

Increase/(decrease) in cash in the period                        (200)                   373                   272





Reconciliation of net cash flow to movement in net debt (unaudited)
For the period ended 31 August 2006


                                                    6 months ended 31     6 months ended 31      12 months ended 28
                                                          August 2006           August 2005           February 2006
                                                                £'000                 £'000                   £'000

Increase/(Decrease) in cash in the period                       (200)                   373                     272
(Increase)/Decrease in debt                                        85                    36                     103

Change in net debt resulting from cash flows                    (115)                   409                     375
Long term loan                                                  (500)                     -                   (550)

Movement in net funds/(debt) in the period                      (615)                   409                   (175)
Net debt at start of the period                                 (797)                 (622)                   (622)


Net debt at end of the period                                 (1,412)                 (213)                   (797)




Notes to the Interim Results

1.         Basis of Preparation

            The results for the six months ended 31st August 2006 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 28th
February 2006.

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 28th February 2006 were reported on by
the auditors and received an unqualified audit report. Full accounts for the
period ended 28th February 2006 have been delivered to the Registrar of
Companies.

2.         Dividends

            An Interim Dividend of 1.4p per share is proposed for the year
ending 28 February 2007. This will be paid to shareholders on 16th October to
shareholders on the register on  29th September 2006. Shares will Ex-Dividend on
27th September 2006.

3.         Earnings per Share

The earnings per share for the six months ended 31 August 2006 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 12,764,858 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 2006           August 2005     28 February 2006
                                                                 £'000                 £'000                £'000

Operating profit                                                 1,224                   723                1,643
Depreciation on tangible fixed assets                               51                    42                   93
Amortisation of intangible asset                                    90                    90                  180
Decrease/(increase) in debtors                                   (538)                  (52)              (1,184)
(Decrease)/increase in creditors                                   413                   240                  879
Issue of in the money share options                                  -                     -                  (5)
Provision for Shares To Be Issued                                   50                     -                   -

Net cash inflow/(outflow) from operating activities              1,290                 1,043                1,606

5.         Analysis of net changes in debt during the period

                                                    6 months ended 31     6 months ended 31    12 months ended 28
                                                          August 2006           August 2005         February 2006
                                                                £'000                 £'000                 £'000

            Cash in hand and bank                                 860                 1,161                 1,060
             Bank overdraft                                         -                     -                     -
             Debt due within one year                           (171)                 (121)                 (140)
             Debt due after one year                          (2,102)               (1,253)               (1,717)

                                                              (1,413)                 (213)                 (797)

6.         Dividend

Following the adoption of FRS21: Events after the balance sheet date, dividends
have been accounted for in the financial year in which they were declared and
approved.


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