Fd Technologies Public Share Discussion Threads

[moorsie2] 11/2/2013 09:36

Tipped where Valhamos?

Buying demand has been quite strong

[valhamos] 11/2/2013 09:28

Tipped I believe

[moorsie2] 11/2/2013 08:40

Very unusual buying activity on FDP this morning.

Good news cannot be too far away???

[moorsie2] 06/2/2013 09:21

The issuing of new stock options might just take the steam out of this revaluation.

Even at 17.5M shares this has a true valuation closer to £8 than £6.

I hope the emphasis on the results to end of Feb in May 2013 will be on shareholder returns rather than just top line growth...

[moorsie2] 04/2/2013 11:51

looks like someone is in the market buying FDP shares - anyone got any views on this??

[wexboy] 01/2/2013 13:08

2013 – The Great Irish Share Valuation Project (Part II)

I take a look at First Derivatives, plus a batch of other Irish stocks:



Cheers,

Wexboy

[moorsie2] 29/1/2013 16:26

Johnroger - this share always carried a discount rather than a premium to its fundamentals - dont know why as its got a proven track record of growth year on year.

The eps over the last couple of years has not kept pace with the turnover and ebitda growth so this is an area that I would like to see greater management attention to as this will ultimately drive the price

[johnroger] 29/1/2013 15:51

If Charles Stanley's forecast is correct then even at current high we are only on a PER of 14.5 with approx 25% growth in earnings due for the year starting in March 2013. At a similar rating this would support a share price of 700p and a little more generous rating for " a global leader in capital markets technology" 1000p not out of the question. This time next year ...

[moorsie2] 29/1/2013 15:27

Now broken through its highest ever share price

Cant see much resistance on this until around 650 and some profit taking around that point.

Would love to see a trading update in February before end of the financial year giving an outperform comment and update on further market wins...

[moorsie2] 21/1/2013 09:58

this is undervalued - its just a question of when not if , whenever the share price catches up with the intrinsic value.

very difficult to predict the weekly or monthly movement in this share - need to take a longer perspective

[weatherman] 18/1/2013 16:25

Moving up slowly...

[johnroger] 12/1/2013 19:37

Techinvest has the July newsletter as a sample on their website with the following comment on FDP

Almost seven years have passed since we first
made the short trip to Newry, County Down,
to sit with a little known financial trading
specialist called First Derivatives - at that
time a tiddler, with a market cap just over
£11m and annual revenues a tad shy of £4m.

We have avidly followed the AIM-listed
Company since, meeting with management
several times. The most recent catch-up was
four weeks ago. We made the shares a New
Buy at 90p in the September 2005 issue of
Techinvest and the CF (now MFM) Techinvest
Technology Fund followed with a purchase
six months later, at 106p per share.

Rolling forward to today, First Derivatives
looks set to achieve revenues in excess of
£55m for the current year to 28 February
2013. It counts 91 customers for its software
and consultancy services, which help many
of the industry's top investment banks,
brokers and hedge funds gain an advantage
in the superfast-moving world of capital
markets trading. The 700 staff are spread
between operations in London, New York,
Stockholm, Shanghai, Singapore, Toronto,
Dublin, Newry (still the HQ and R&D centre)
and Hong Kong. The latest share price is
472p, a gain of 424% on our original tip.

First Derivatives (also listed on the ISE in
Dublin) boasts a niche position in knowledge
of capital market assets (equities, fixed
income, foreign exchange, commodities etc)
combined with expertise in leading financial
services systems. The Company has
completed five acquisitions since 2008
(including capital markets consultancies in
Canada and Australia, and a Dublin-based
trading platform provider) and has developed
a trading platform, Delta, from which its
offerings in mission critical trading, risk
management systems and reference data
platforms are derived. First Derivatives
believes a recent release developed for FX
trading, Delta Flow, has the potential to be
disruptive. Both mobile and desktop versions
are available for the hosted service and the
order book looks "encouraging".

Capital market consultants are typically
posted with clients and First Derivatives prides
itself on placing experts with the knowledge
to gather requirements efficiently and in
sufficient detail to provide solutions in a
minimal timeframe. Consultant numbers grew
36% to 368 during FY2012, a number sufficient
for bids on larger outsourcing contracts.
Revenue for the year ended February 29
jumped 25.4% to £46.1m, despite a tough
market for IT spending. Transactional and
recurring revenues soared 102% and
accounted for 44% of the £13.5m software
sales. Consultancy revenue grew 35% to
£32.6m. Normalised pre tax profit was £7.3m,
up 25%, with corresponding earnings per
share of 37.5p (2011: 28.6p). Operating cash
flow rose to £8.2m from £5.4m last time. A
grant of £1.4m from Invest NI, relating to
recruitment levels, is expected to continue
this year, before falling off in the future.

House broker Charles Stanley forecasts
normalised profit before tax of £9.2m for the
current year on revenue of £56.1m. For
FY2014 this rises to £11.6m and £64.6m
respectively. Corresponding earnings per
share are expected at 38.9p for the current
year, rising to 48.7p and putting the shares
on a forward P/E of less than 10.

First Derivatives has established itself as
a global leader in capital markets technology.
Despite the rise of recent years, the shares
are lagging events. Buy at 472p.

[johnroger] 14/12/2012 14:35

Uk Analyst Comment

Financial software provider First Derivatives (FDP) has signed a multi-year annual software license with the Australian Securities and Investment Commission (ASIC) to implement its Delta Stream product for the design and development of ASIC's new market surveillance system. The agreement was finalised for an undisclosed fee and the product in question will be used by ASIC to interrogate large data sets and monitor trading in the market in a way consistent with the increased use of technology in day-to-day trading.

According to THIS ARTICLE the ASIC has a A$16.3 million capital budget for replacing its market surveillance system, potentially making the deal the largest in the company's history. The shares gained 10p to 515p.


THIS ARTICLE was subscription only

[fferron] 13/12/2012 11:05

Any experts have an idea how much this deal could be worth?

gg

[woodcutter] 13/12/2012 09:47

despite my recent positive comments i feel it standing time the share price is not reacting the way i'd hoped and this latest contract news seems to have had little impact justifying my decsion to sell my holding over recent weeks.

WC

[jackobite] 14/11/2012 12:44

Any idea who bought these?http://www.bbc.co.uk/news/uk-northern-ireland-20311450

[woodcutter] 06/11/2012 18:16

Well at the end of the day a small number of sells has affected the share price quite a bit, understandable really given the liquidity. The point perhaps that has been lost is in David Andersons statement.

"To fuel this growth we have continued to make substantial investment in the development of all the Group's activities to ensure we have a strong organisation that can react to the market through the quality of our product and service offerings. This investment has resulted in us signing a number of contracts during the period which will start to become revenue generating in the second half and we have a healthy pipeline of prospects. Despite a background of market turbulence we expect to report profits for the year in line with market expectations."

Clearly there have been some costs generated on products/projects that have yet to show significant forward earnings hence the reduction in margins.

In addition to this the trade receivables has increased significanty having an impact on cashflow, debtor days stands at over 120 and the gap between receivables and payables has grown. Given this i feel that the business performance was pretty decent and is perhaps a little understated.

I would expect the H2 results to be more representative of the investment undertaken in H1 and the impact of the acquisitions too.

With around 36p eps forecast, i would expect to achieve that based on past H2 record so anything back around 500p would seem a good point to top up for per of just under 14 which is in line with historical per.

Woody

[woodcutter] 06/11/2012 08:17

There hasn't been much reaction to the results in terms of trading initially and all-in-all they were quite reasonable. The only critique i would have is if you strip out the £0.5 million profit from property sales it looks fairly flat. What is pleasing is the growth in sales which hopefully going forward will deliver better profits. The gross margins on an ebitda basis have reduced approx 2% and admin costs have increased similarly but i figure this is necessary as they ramp up to deliver the next stage in their growth strategy.

Outlook statement was comfortable so i have no real concerns. It may dip a little after the rise up to results.

Woody

[saucepan] 06/11/2012 08:12

FDP has been on my watch list, but a mere 3.3% increase in eps is not what I was hoping for or demand from a growth share.

[moorsie2] 06/11/2012 08:06

THe usual buy on speculation and sell on news....

[swiss paul] 01/11/2012 19:24

flight to quality

[johnroger] 31/10/2012 16:20

A re run of the October 10 July 11 price action would be good to see, up approx 60%! With a market cap of well over £100 million there would be more II interest. Would the company consider a move to the main market?

[moorsie2] 31/10/2012 15:58

Without doubt it will break previous highs - right upto results day and then depending on the message its anyones guess where it will go

[djon] 31/10/2012 15:02

Almost at the lifetime high, can it push on further this time....

[woodcutter] 26/10/2012 10:09

Yes it is expensive but i think the acquisition earlier in the year will help deliver that growth, it's earning enhancing too. i guess i'm biased as i bought in recently and will top up on any weakness.

Woody