Revenues at technology provider First Derivatives (FD) rose by 34 per cent in the first half of the year as the Newry-headquartered financial services specialist benefited from strong growth in its software division and a weakening in the pound/US dollar exchange rate. Brokers expect full year revenues to advance by 8 per cent.

In the six months to August 31st, 2016, revenues rose by 34 per cent to £72.4 million (€80.4 million) as pre-tax profit soared by 52 per cent to £7 million (€7.75 million). FD reported particularly strong growth in its software division, with revenues growing by 60 per cent to £29.4 million (€32.6 million) and recurring licence revenue up 45 per cent to £13.6 million (€15 million). FD operates a predominantly subscription-based licence model. Consulting revenues rose by 21 per cent to £43 million (€47.6 million). FD is to increase the interim dividend by 20 per cent to 6p per share.

Noting that FD had made "significant progress" in the first half of the year in extending its reach beyond financial services, Seamus Keating, chairman of FD, said: " The second half has started positively and the high visibility within both consulting and software gives the board confidence in a continued strong performance for the full year."

FD said it was “advancing” its strategy to penetrate other vertical markets, primarily marketing technology and utilities. It is also looking to other arenas, such as telecoms and the internet of things.

On Brexit, Mr Keating said that the impact was still not clear.

“Our business is well geographically diversified, with over 60 per cent of revenue generated outside the UK,” he said. “Looking ahead, FD has consistently demonstrated its ability to adapt and grow successfully as business conditions evolve, and we are confident in our ability to assist our clients through whatever transitional change may be required when the implications of Brexit become clear.”

Graham Ferguson, chief financial officer, added that the company doesn’t foresee Brexit having any impact on its ability to recruit people.

“Our ability to hire and deploy will go on unfettered,” he said.

The weakness of sterling against the US dollar since the referendum has been a net benefit to the group’s operating results, and has led to an increase in revenue.

Goodbody Stockbrokers is forecasting revenue growth of 8 per cent to £144.2 million and earnings (EBITDA) growth of 3 per cent to £27.4 million for full-year 207, reflecting “the forex tailwind and underlying momentum”.

Commenting on the forecast, Mr Ferguson said: “We’re happy that we’re trending in the right way and we see another second half of progression for the business”.

FD employs some 1,700 people across its operations in Newry, Belfast, Dublin and 10 other global locations, up from 1,500 last year.