Fd Technologies Public Share Discussion Threads

[moorsie2] 13/2/2017 09:32

There is a lot of demand here and underlying strong good news.

I can see this pushing onto 25 very quickly

[aishah] 07/2/2017 15:33

TechMarketView:

First Derivatives links with BGF to support new ventures

Really interesting idea from First Derivatives, the supplier of database technology and provider of Fast Big Data solutions. They are partnering with BGF (Business Growth Fund) to support smaller companies as they get established or exploit new markets.

First Derivatives will provide budding entrepreneurs and business leaders with access to their kx high performance platform and solutions to “unlock the intelligence” within their target market areas. The embryonic and early-stage companies will use FD’s technology to analyse masses of data (real-time, streaming, historical, unstructured, you name it) to develop focused strategies and to understand how best to take their businesses forward. BGF stands ready to support the companies with access to funds (from its £2.5bn balance sheet) and with advice from its executive team. BGF will benefit from the analysis enabled by the kx technology to provide the correct support and improve its ability to select winners for its BGF Ventures activity. First Derivatives should build relationships with potentially large future customers and also gain a better understanding of new market sectors. Some of the ventures may well be able to support First Derivatives business in areas such as cyber security, AI, blockchain, robotics, etc. There could also be scope for First Derivatives to invest in these businesses.

First Derivatives has already made huge progress in the financial services sector and is now applying its technology in retail and other verticals. First half figures showed revenue up by 34% to £72m and EBITDA up to £13.6m. They seem to have found a winning formula. One word of caution though. The BGF venture has enormous attractions, but the management of First Derivatives must ensure that they keep their focus on driving home their advantage in the key markets they serve

[moorsie2] 03/2/2017 19:12

Some good demand around 23 pounds here.

Usually a sign that more good news is on the way

[algo1] 02/2/2017 12:09

I love this share..!

Sat down last night and read through last years audited accounts and came across something in "note 36 / Financial Instruments / Currency Risk" regarding bank facilities and receivables.

You can go find it from the usual sources if you're interested, but the short story is that the company estimated at the time that a fall in Stg against USD/EUR of 10% would have increased reported equity by approx. £3m, and profit by £2m. The avg ROE's at the time were 1.51 (USD) and 1.37 (EUR). Given current rates over the last 9 months, +£2-3m has got to be on the cards this year. Interest rates have not really moved too much either.

So... given confident half yearly financials and commentary, I think we are looking firmly at the top end of analyst expectations given the current decent economic environment and currency tailwinds. Top expectation I can find is £162.8m (+39% over FY1516- who would bet against that coming in?) so share price got to be in the £24/25 range during the lead up to results day?

Also had a good nose around the KX website. Great stuff out there esp in finance - clearly complemented by the applications that FD have built over the last few years which are now marketed under the KX banner. The "emerging solutions" - particularly retail - look thin, but its early days. Hopefully the quality of offering will strengthen in this area shortly.

If you have not looked over the Kx website recently - do so! S/w applications very impressive.

Comments welcome!

[moorsie2] 02/2/2017 09:06

into the last trading month of their financial year.

It would be good to get a trading update towards the end of the period

[moorsie2] 31/1/2017 10:44

Interesting article from the Kx website


Kx 1.1 billion taxi ride benchmark highlights advantages of kdb+ architecture

25 Jan 2017 | kdb+/q, kx, Lambda Architecture


Share on:





By Glenn Wright

Stellar performance in third-party benchmarks is a tradition at Kx, and now we can add a new benchmark to the list, the taxi ride benchmark developed by Mark Litwintschik.

This latest benchmark (available here) queries a 1.1 billion New York City taxi ride dataset. It captures fares, weather, pick up and drop off locations and times, among other things. This dataset which covers trip data between 2009 and the present day, is made publicly available by the New York City Taxi & Limousine Commission. One of the first individuals to visualize this data was Todd W. Schneider (available here).

In January, Mark tested Kx’s kdb+ database, with its built-in programming language q. Kx’s results were impressive. They clearly demonstrated the advantages of kdb+/q’s simple, scalable Lambda architecture, designed to manage massive quantities of real-time, streaming and historical data at record speeds. To the best of our knowledge, kdb+/q is the only technology that takes advantage of large-scale batch and stream-processing methods in one tool.

Mark has previously tested other software using the same dataset and queries, including Spark, MapD, Presto, PostgreSQL, RedShift and ElasticSearch. To compare these results with kdb+/q’s, it is important to weigh the software’s strengths as a computing engine for complex analytics and the type of hardware configurations it is typically used with.

Our results were over four orders of magnitude faster than any other CPU technology and comparable to GPU-based code. CPUs are still the mainstream choice for most data scientists who need to quickly load and analyze large datasets. Some are turning to GPUs for speed, but they are often finding that there is more coding complexity with GPUs complicating their analytics and increasing the resources required. Therefore it is impossible to make an apples-to-apples comparison between kdb+/q on CPU versus other technologies on GPUs.

In the financial services industry, where kdb+/q has been battle-tested on multi-petabyte datasets and machines, the applications are different than those currently adopting GPUs, they are more compute intensive and demand exceptional data ingest and manipulation speed. Financial firms are currently working almost exclusively with CPUs.

Here are some of Mark’s kdb+/q highlights from the benchmark:


Refreshing not to have a large configuration overhead.

A binary that works well right off the bat and can be tweaked with a couple of flags — a welcome relief from hours of tuning disparate configuration files spread over clusters.

Fastest query times of any CPU-based system, and a record set on one query.

Advantages when data locality is as optimized as it is in kdb+/q. It did an amazing job of breaking up the workload amongst the 1,024 CPU threads in the cluster — opening up a whole new world of optimizations.

To learn more about the Kx taxi demo, check out a video from the Intel Discovery Zone at SC’16 from InsideHPC (available here).






©2016 Kx Systems
Kx® and kdb+ are registered trademarks of Kx Systems, Inc., a subsidiary of First Derivatives plc.

[moorsie2] 30/1/2017 08:41

Owning the Kx technology is the key issue here and was the deal that truly transformed the future earnings potential of this company

[flybyknight] 29/1/2017 16:37

hxxp://www.euroinvestor.dk/nyheder/2017/01/25/datawatch-panopticon-and-aquaq-analytics-expand-partnership-to-bring-advanced-trading-analytics-to-the-capital-markets/13519890

Seeing a lot of this since kx takeover. 3rd party groups starting to base products on underlying kdb technology.

A set of possible take over targets.

30 seems realistic now.

Knight

[moorsie2] 20/1/2017 12:21

the price is getting walked down on very very low volumes - MMs looking to shake out any profit takers.

I for one will not take profits until we get to the £30 level. Too much growth history and important pipeline opportunities here to jump off now

[mach100] 06/1/2017 21:45

In at 1160 and 1300p myself I had a 25% upside target to sell but decided to hang on instead. It did yo-yo between 1200p and 1600p but am glad I held my nerve. Moorsie has been great with the info he posts here and is partly responsible for me retaining the share rather than taking profits lower down. Not even considering top-slicing here as I think there is more to come.

[moorsie2] 04/1/2017 16:34

As said on 12th Dec - I expect this to run to 2350 by end of Feb.. Exactly when (as in if sooner ) is impossible to say

[legg96] 04/1/2017 11:42

Yes, got in at 157p. Pretty illiquid in those days, but it had a fantastic PEG. Investment now worth 70k. Again kick myself for not buying more.

[dexy2] 04/1/2017 10:31

God I love this share, been in from 287p....just wish I'd bet the farm on it. Any other super-long term holders?

[johnroger] 03/1/2017 15:04

Indeed, buyers paying 2200 for the first time!

[eddyeagle1979] 03/1/2017 12:53

Good start to the year here!

[moorsie2] 29/12/2016 08:42

It has actually been a very quiet year from an IR point of view by First Derivatives. Just looking at the RNS's since the full year results in May and virtually every market announcement has been about Director dealings or the Issue of New Equity.

Come on IR manager give us and the market some more positive news flow!!

[moorsie2] 12/12/2016 10:49

It looks like it is time for it to break through this price barrier

Once it does I expect it to move to 2350

[aishah] 08/11/2016 10:46

Techmarketview:

First Derivatives off to the shops

Earlier this month First Derivatives, the supplier of Fast Big Data solutions, reported excellent first half figures, see …a winning formula. At the same time, the company stated its intention to redouble its efforts to extend the use of its high-speed database technology into more verticals.

Management has lost no time in declaring its hand in the retail analytics market, having recruited a team of retail technology specialists with experience gained in the likes of Asda and Walmart. First Derivatives had already had exposure in the retail business by working with Cisco and HPE to drive better customer profiling and lead management. The new team will now be looking to broaden the types of retailers that can benefit from faster data analysis. First Derivatives' portfolio will aim to support decision-making in terms of directed propositions and offers and to improve inventory management and internal processes.

When we spoke with the management at the time of the results, they were confident that the company can build a strong position in the retail analytics market. It certainly offers significant potential, as the company quotes market size statistics of US$5bn and annual growth of 19%. Building a business in the retail vertical may take some time, but the company’s momentum in its core business should ensure good growth at both the top and bottom line. We can expect additional initiatives to exploit other verticals in the not too distant future.

[aishah] 08/11/2016 08:57

Entry into Retail Analytics market

FD (AIM: FDP.L, ESM: FDP.I) announces its entry into the retail analytics market, using its Kx technology as a platform to develop solutions under a team of leading retail technology specialists recently recruited by the Group. The move opens up an addressable opportunity which, according to MarketsandMarkets, is expected to grow at 19% per annum to be valued at more than $5 billion per annum in 2020.

The explosion of data volumes in the retail industry is driving demand for technologies that can provide real-time analysis, which Kx, with its pedigree in handling the most demanding data challenges in capital markets, is ideally placed to meet. FD has demonstrated the capabilities of Kx to a number of leading retailers across various market segments and as a result has identified an attractive range of solutions delivering high return on investment for prospective retail customers. These solutions include analytics combining streaming and historical data around point of sale, inventory control and planning, loss prevention and customer insights. Kx's ultra-high performance, enhanced by predictive analytics and machine learning capabilities, provides the ideal next generation platform for retail analytics.

[moorsie2] 03/11/2016 15:53

Very significant volumes traded today 75k plus shares (similar to yesterday). Edit - 138k by close of day!!!!

virtually all above 2100 - so very positive for a new floor on the share

15% share price appreciation from here is very likely

[moorsie2] 02/11/2016 15:12

Very strong volumes today consolidating yesterday's rise

This is a notorious difficult share to acquire due to illiquidity ,however after results there are always some employees cashing in some options. Good time to get stock as when the supply dries up the share price will move on significantly

[moorsie2] 02/11/2016 10:54

The thing that is not so clearly understood is the uniqueness of the KX platform and its world beating application in MarTech.

Analysts are valuing this company based on what it was 3 years ago which was a consulting and reseller of Kx skills to the financial market. Now it owns Kx and have developed phenomenal software capabilities not just for Finance but specifically for high end marketing.

Watch this get rerated very soon as new money sees the valuation gap here

[aishah] 02/11/2016 10:46

TechMarketView:

First Derivatives management integrate a winning formula

At the time of the First Derivatives full year figures in May, we predicted a successful performance for the current year and the H1 figures announced today fully endorse our optimism. This provider of Fast Big Data Solutions has beaten expectations with revenue up 34% to £72.4m and Adjusted EBITDA ahead by 26% to £13.6m.

The Managed Services and Consulting business (60% of revenue) advanced by 21%, at what management consider to be a comfortable cadence, balancing the growth objective with the need to maintain quality. The company now has a 20-year history in serving the capital markets industry and is deploying this experience and a strengthened management team to take on bigger and more strategic contracts.

The software business, centred on the high-speed Kx Fast Big Data platform, grew by 60% over the year. In Financial Markets, where the customer list already includes many of the top names, revenue was still able to grow at over 50%. Here the FD products were deployed to meet new analytical and compliance requirements, often on an enterprise-wide basis and displacing incumbent suppliers and in-house developed systems. Management are also investing in new verticals, having seen the success in Marketing Technology, where the Kx platform provides predictive analytics and lead management for large retail operations.

The First Derivatives team has a winning formula built on the Kx platform and its established position in Financial Services. It now sees the opportunity to exploit this technology in new verticals. Consequently, the required investment may take some of the shine off the bottom line’s rate of progress over the next couple of years. Nonetheless, we would still look for a consistent and creditable financial performance as management take a level-headed approach to realise this company’s undoubted potential.

[moorsie2] 02/11/2016 10:07

Yes I read that last night and think that the valuation is overly pessimistic. It always has been by IC and really if you look at this share performance and revenue growth over the last 5 to 10 years it is a classic IC share advice which they got badly wrong to date...

[johnroger] 02/11/2016 09:25

I.C on line comment this am

Investors in First Derivatives (FDP) may be rubbing their eyes, but the data analytics group's stellar growth isn't an illusion. Revenue - excluding acquisitions, currency movements and one-off items - leapt by more than a quarter in the reported period, driving underlying cash profit up about a fifth.
First's recruiting efforts, technology upgrades and sales and marketing investments underpinned its gains. The group hired more consultants and won a bunch of managed-services contracts, sending divisional turnover up 21 per cent to £43m. But the greater gains stemmed from its software tools, which management say are used by every one of the 10 biggest global investment banks to analyse and visualise vast volumes of financial data. Software sales surged 60 per cent to £29m as management fulfilled contracts penned last financial year, both in financial services and newer sectors such as marketing technology.
Broker N+1 Singer expects higher costs to balance out First's continued momentum. It forecasts adjusted pre-tax profit of £20.8m for the year to February 2017, giving EPS of 60.2p, rising to £23.5m and 66.2p in FY2018 (from £16.8m and 51.7p in FY2016).
FIRST DERIVATIVES (FDP)
ORD PRICE: 2,085p MARKET VALUE: £513m
TOUCH: 2,056-2,089p 12-MONTH HIGH: 2,114p LOW: 1,430p
DIVIDEND YIELD: 0.9% PE RATIO: 54
NET ASSET VALUE: 504p NET DEBT: 13%
Half-year to 31 Aug Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2015 53.8 4.6 15.0 5.0
2016 72.4 7.0 20.5 6.0
% change +34 +52 +37 +20
Ex-div: 10 Nov
Payment: 5 Dec
*Includes intangible assets of £159m, or 645p a share
IC VIEW:
First is signing big contracts with blue-chip clients and eyeing large markets such as telecoms and the internet of things. Its focus on subscriptions has improved revenue visibility, while its international footprint has so far insulated it from Brexit-related effects. However, First's shares are priced for perfection at 31 times forward earnings for FY2018 - a sharp premium to peers that leaves no room for error. Hold.
Last IC view: Hold, 1,800p, 17 May 2016

By Theron Mohamed,
01 November 2016