FD Technologies anticipates future growth following strong first half

FD Technologies PLC on Tuesday said it was extending its guidance for the full year after strong revenue and profit growth in the first half.

FD Technologies is a County Down, Northern Ireland-based group comprising several data-driven businesses, including technology and digital solutions providers KX, First Derivative, and MRP.

For the six months ended August 31, the group reported pretax profit of £1.1 million, swung from a loss of £1.6 million a year prior.

Revenue also increased, up 15% to £147.4 million from £128.0 million.

FD Technologies attributed this to performance at both KX and First Derivative, emphasising the return of the former to growth, with revenue up 19% to £37.8 million from £31.9 million last year. Revenue for the latter was £86.2 million, up 22% from £70.7 million.

The group said that while both performed above its full-year guidance, this was balanced by a reduction in revenue at MRP, which fell 8% to £23.4 million from £25.3 million.

FD Technologies has extended its revenue guidance based on its first half results, and now expects revenue for the 2023 financial year to be at least £300 million.

It maintains guidance for adjusted earnings before interest, tax, depreciation and amortisation in the range of £36.5 million to £38.5 million, but argued that the recent appointment of Ashok Reddy as Chief Executive Officer of KX would help to accelerate growth.

Chief Executive Officer of FD Technologies, Seamus Keating, commented: "These results demonstrate that our strategy of investing to accelerate growth is working. We have added significant value to the group during the first half-year as our investments in product, systems and people are delivering."

The group did not declare an interim dividend, unchanged from last year.

FD Technologies shares were trading 3.1% higher at 1,423.00 pence each in London on Tuesday afternoon.

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