Fd Technologies Public Share Discussion Threads

[ds8095] 03/10/2018 16:55

The full bear case is now available on Shareprophets.com

[sspurt] 03/10/2018 09:59

I think the main risk is that management decide to really go for it, sacrificing the bottom line in a ramp of expenditure to grab market share at an accelerated rate. In this event the market would derate the shares, never mind the long game. Could get messy.

[moorsie2] 03/10/2018 08:26

The only risk I see is that as the high multiple is based of hopeful future earnings and valuation of software, that if all the new hires are simply pure consultancy rent outs then the company has growth and has more employees but the valuation would drop as no great traction in Kx and software.

So that is my key watch out in the upcoming half year results.

Also think they will pick up at least 1 awards at AIM awards bash next Thursday night ... ;)

[malcontent] 02/10/2018 21:32

my largest SIPP holding by a distance and one of three I am most comfortable with.

So few of us posting on this board - it's always a mystery but maybe it's because there's not really a strong bear case to make except for the racy multiple, and that's not an issue if FDP keep on delivering

[moorsie2] 28/9/2018 09:07

Fantastic news - looking forward to the half year results now!!

[moorsie2] 28/9/2018 09:03

First Derivatives (FD) today announces its intention to recruit 1,000 new employees in the next three years. The new recruits will facilitate the continued rapid growth of the business and will be across graduate, experienced and senior levels. This employee expansion builds on sustained growth at FD, with annual growth averaging 31% over the past three years.

FD is a multinational software and consulting company that currently employs more than 2,400 employees. The company recruits exceptional candidates, both local and international, with a focus on STEM backgrounds, and provides unparalleled career opportunities. The new jobs will be across the company’s operations, including FinTech, where FD works with many of the world’s leading financial institutions, and a range of other industries, including manufacturing, digital marketing, retail, gaming, telecoms, automotive and space. FD’s Kx technology addresses Big Data challenges across all these industries, providing a stimulating work environment and the opportunity to work with our global client base to provide cutting edge technology solutions.

Brian Conlon, CEO of FD, commented: “This is an exciting time for FD and this expansion reflects the strong growth and development of the company. We have a highly skilled and accomplished team, and we look forward to bringing on more talent.”

About FD
FD is a global technology provider with 20 years of experience working with some of the world’s largest finance, technology, retail, pharma, manufacturing and energy institutions. Kx technology, incorporating the kdb+ time-series database, is a leader in high-performance, in-memory computing, streaming analytics and operational intelligence. Kx delivers the best possible performance and flexibility for high-volume, data-intensive analytics and applications across multiple industries. The Group operates from 14 offices across Europe, North America and Asia Pacific, including its headquarters in Newry, and employs more than 2,400 people worldwide.

For more information about Kx please visit www.kx.com. For general enquiries, write to [e-mail]. For press inquiries, write to [e-mail]

[swiss paul] 26/9/2018 13:03

With only weeks to go until the 2018 AIM awards, former AIM writer of the year Andrew Hore reveals who he thinks will walk off with the gongs this time.

Global achievement award
Software provider and consultancy First Derivatives is a regular on various shortlists, but it does not tend to win very often. It is one of the best performing AIM companies in terms of share price. More than two-thirds of revenues come from outside the UK.

Best technology
Software supplier First Derivatives is on the shortlist for the second year running and it is also in the running for the global achievement award (see above).

Entrepreneur of the year
Brian Conlon founded First Derivatives in 1996 and it is now capitalised at more than £1 billion.

Best of luck all and proud to hold

[moorsie2] 05/9/2018 12:13

Clear overhang on the shares. Guess we just have to sit it out until the seller clears their position

[moorsie2] 03/9/2018 17:33

Thanks Johnroger

[johnroger] 03/9/2018 14:32

Sharescope only has consensus for the full year as

PTP £m 27.51
EPS 79.25p
Turnover £m 211.7

[moorsie2] 31/8/2018 15:07

Has anyone got the market expectations (consensus) is for H1 2019 results (March - August 2018) ?

[moorsie2] 31/8/2018 14:32

Fair point and good risk management.

Half year trading closes today.

I would like to see management give a pre results trading update and take the opportunity to clarify the point of your concerns, though for this second bit you will most probably have to wait to late October to read it in the full text of half year announcements.

IR at FDP monitor this and other websites so guys please take this points onboard and give us shareholders a T.U.

[sogoesit] 31/8/2018 13:30

Yes, Moorsie, it was my guess too that they are relying on the cash flows.

Their RNS did not, in fact, specifically say that which caused my doubt and why I checked the overall position of where they would find the finance.
The RNS words were: "...to be financed from FD's available facilities."
You have interpreted that statement differently to me which proves my suspicions that the statement could be seen as opaque and thus doubtful.

The risk, at the price I sold, was too much for my comfort at the time.

If I see this risk mitigated I will look to re-invest.

[moorsie2] 31/8/2018 13:05

This is from the 2018 full year results announced on 22nd May

Non current assets 188.5M
Current assets 66 M


Non current liabilities 67 M
Current liabilities 43 M



I would expect the cash flows from Kx to pay down quickly any debt incurred to buy out ownership of Whitey and Lustgarten. So conversely I saw this as very positive news. I would rather have some debt to paydown and 100% ownership of a world leading technology than vice versa.

[sogoesit] 31/8/2018 10:02

Debt position (note the maturity structure and the interest base (in a scenario of rising interest rates)):

"The Group had the following loan facilities with Bank of Ireland
£339k loan (Facility 1)
£29,625k multi-currency loan (Facility 2) £15,000k revolving cash facility (Facility 3) £4,500k sterling overdraft (Bank Overdraft)"

Facility Interest Rate. Maturity
Facility1 GBP 2.25% +LIBOR 2019
Facility2 Multi 2.25% +LIBOR* 2020
Facility3 GBP 2.25% +LIBOR* 2019

Bank overdraft GBP 2.25% +LIBOR 2019
Finance lease liabilities USD 4.375% 2018

[sogoesit] 31/8/2018 09:46

Hi Moorsie,

My concerns were the following at last (preliminary) results reported on 22 May 2018:
Assets:
Trade and other receivables: £60.3m (£53.7+£6.6m)
Cash: £12.4m

Liabilities:
Non-Current: £67.1m
Current:£49.3m

I looked at the debt position as well and will dig that up if you're interested.
My concern was how they would finance the Kx minority buy-out ($53.8m) and that that would put it in an "unhealthy" position imo.

PS. I am an engineer... not an accountant!!

[moorsie2] 31/8/2018 09:19

Great find Sogoesit. Thanks

I agree with most of the article but I do not understand the concern regarding the balance sheet... anyone care to explain? Their balance sheet does not look exposed or extended to me..

[sogoesit] 31/8/2018 08:45

The Chronic Investor has an article on "Nine British Disruptors" today of which FDP is one and the others are:
FFX
JD.
GYM
LTG
PRSM
MGR
FEVR
AMYT

It says this about FDP:

"First Derivatives

Behind many disruptor’s business models is a desire to harness the power of ‘big data’. And behind many big data solutions is First Derivatives’ (FDP) Kx technology. The company regards itself as a world leader based on its ability to capture and analyse vast amounts of data from both real-time and historical sources. And this is a great market to be a leader in if the company’s estimates of the market’s size are correct. These estimates, made in conjunction with research firm Gartner, put a market value on annual licence sales of $63bn this year, rising to $83bn in 2020.

The company has long been investing in its product, traditionally targeting the highly regulated finance industry and the reams of data it generates in day-to-day activities. Indeed, the company has produced 21 years of consecutive double-digit revenue growth. While fintech still accounts for over three-quarters of revenues, First Derivatives is branching out into new sectors. However, because the same Kx technology is the foundation of all its products, it is able to streamline research and development and support. It is also actively trying to identify and work with companies that wish to use big data to disrupt markets and says it has a pipeline of exciting opportunities."

(I don't hold at present having sold out at 4700'ish on the news of the purchase of the minority stake in Kx and my concerns about the balance sheet. But watching to see where this goes next).

[flybyknight] 30/8/2018 20:03

Took your points on reflected.

I've been positive and at worst even on this share. I still hold ( a lot ) btw.

[moorsie2] 30/8/2018 10:06

:)

You are a strange poster Flybyknight....

Here 4 years and never once posted a comment about any other share.

Wonder what that is about?? Sole fascination with FDP and regularly in a hawkish way. hmmmm

[flybyknight] 30/8/2018 02:14

The only gap is between your ears Moorsie if you thinks that.

Any MM that let this stock be arbed wouldn't last long ( even the paddy isnt that gullible )

[moorsie2] 22/8/2018 10:06

Big arbitrage gap opened up this morning with FDP on the Irish stock market jumping 13.33% to 51 euros - about 45.5 pounds...

[moorsie2] 21/8/2018 20:32

Feels like breakout time again...

[flybyknight] 10/8/2018 15:57

The fact results and sales awards from older acquisition dont make news worries me. [ hxxps://www.finextra.com/news/fullstory.aspx?newsitemid=20652 ] No validation of the numbers behind this purchase have ever been given. I feel same applies to others.

The profit and revenue per head annoy me. I understand other takeovers skew this figure but still its not transparent. [ hxxps://www.mrpfd.com/company/ ]

A clear distinction between software and consultancy income is not made in my mind. Kx as a software company had a very small footprint but large revenues before take over.

It worry me that company size seems to be fueled by graduate entry. ( I follow twitter and other social media ) Why the need for the contined groth? The product suite should be complete?

This company has fueld fantastic returns for me. Its till does, but not looking at the numbers becaus ethey are good is a bad idea.

Why does the software need a loss leader?

Happy to be challanged Paul.

[swiss paul] 10/8/2018 14:55

Fly, how do you know the contract are not being done as a SAAS model. Also these contract have only just been awarded so how do you know they wont contribute. Finally have you never heard of lost leaders - used successfully by ADT and others in the past. Get them in - get them hooked - then utilise the service to deliver profits.
Each to their own and its good to have you challenging via a specsavers challenge!

B/w
Swiss