Pre-close period trading update

RNS Number : 2254B

First Derivatives PLC

02 April 2013

 

2 April 2013

First Derivatives plc

("First Derivatives" or "the Company")

Pre-Close Period Trading Update

First Derivatives plc (AIM: FDP.L, ESM: GYQ.I), a leading provider of software and consulting services to the capital markets industry, has today announced that trading in the second six months of the financial year ended 28 February 2013 is expected to be broadly in line with that achieved in the first half.

The Company announced a significant new contract in December 2012 which is currently being delivered. The Company has committed significant resource to the successful implementation of this contract which is progressing well. Despite this, the current timing of the delivery means that the Company does not expect to recognise the majority of the implementation revenue from this contract in the year to 28 February 2013 and that license revenue recognition will not start until after the year end.

The Company also announces that a disputed debt has arisen from a legacy delivery from the business of Cognotec, which was acquired in February 2010. The Company is robustly pursuing the contracted payments due, but believes that a significant provision against this debtor in the accounts for the year to 28 February 2013 is prudent at this time. There are no other legacy issues surrounding the business of Cognotec. 

The Board confirms that results for the year to 28 February 2013, prior to the non-recurring debt provision referred to above, are expected to be in line or close to current market forecasts.

Prospects for the business remain positive and the Company has made a strong start to the new financial year. Further details will be published when the Company reports its results for the year to 28 February 2013, which will be announced on Tuesday 18 June 2013.

Enquiries:

First Derivatives plc	[phone]
Brian Conlon, Chief Executive	www.firstderivatives.com
Graham Ferguson, Chief Financial Officer
Charles Stanley Securities (Nominated Adviser)	[phone]
Russell Cook
Carl Holmes
Goodbody Corporate Finance (ESM Adviser)	[phone]
Diane Hodgson
Linda Hickey
Walbrook PR	[phone]
Bob Huxford	[e-mail]
Paul Cornelius	[e-mail]

About First Derivatives

First Derivatives is a global provider of software and consulting services to the financial services industry. With over 15 years experience working with leading financial institutions, it continues to deliver technologically advanced, award winning products and services that anticipate and respond to the evolving needs of global capital markets.

First Derivatives currently employs over 710 people worldwide and counts many of the world's top investment banks, brokers and hedge funds as its customers. It has operations in London, New York, Stockholm, Shanghai, Singapore, Toronto, Sydney, Dublin, Newry and Hong Kong.

 

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