First Derivatives plc (LON: FDP) have seen their share price spike as the company released its most recent trading update, the firm saw rising pre-tax profit and an earnings rise.
In the six months to August 31, revenue grew by 11% to £116.7 million from £105.6 million with pretax profit rising by 11% to £8.4 million from £7.6 million.
The firm boosted its interim dividend by 10% to 8.5 pence per share from 7.7p.
Shareholders will be pleased with the performance of First Derivatives across 2019, as earnings before interest, depreciation, taxation and amortisation rose by 22% to £22.0 million from £18.1 million.
Additionally, the firm also completed a a $53.8 million deal to take sole ownership of its subsidiary Kx Systems.
This comes at an important time for First Derivatives, in a sector where competitors such as Gentrack Group Ltd (NZE: GTK) have seen progress.
Additionally, Intelligent Ultrasound Group PLC (LON: MED) saw increasing sales in the testing of its new AI software, showing the need for First Derivatives to post these positive results.
First Derivatives said: “Notwithstanding economic uncertainty, we secured a number of contract wins during the period, particularly around regulatory compliance and reporting in Europe. We have also expanded the range of third-party vendor technologies we support and developed some additional propositions that we believe will be attractive to our clients and increase our addressable market.
“As a result, irrespective of any improvement in economic conditions, we expect growth to accelerate in our traditionally stronger second half.”
The company also added that it was confident in reaching its full year results in line with board expectations.
First Derivatives said anticipates financial 2020 revenue to be £242.9 million with an adjusted Ebitda of £43.8 million.
In financial 2019, it achieved revenue of £217.4 million and an adjusted Ebitda of £38.9 million.
These results come at at an even better time as the company was mourning the loss of founder Brian Conlon, who died in July after a battle with cancer.
Shares of First Derivatives jumped 4.06% as a results of the positive results.
Shares currently trade at 2,289p per share. 5/11/19 11:44BST.
