FD Technologies plc in Newry will complete the £230m sale of its consulting business on Monday, the company has said in its half-year results.
Following the sale of First Derivative to US firm EPAM Systems, software business KX will be the group’s sole continuing operation and will keep around £54m of the net proceeds of sale.
And following repayment of debt due on completion December 2, a balance of around £120m cash will be returned to shareholders, FD Technologies said on Tuesday.
The company, which is listed on the Alternative Investment Market (AIM), said the pipeline for KX was strong for the second half of the year, and into the following year.
It said there was a “healthy mix of expansion and new opportunities across capital markets, aerospace and defence, and semiconductor manufacturing” ahead.
Over the half year to August 31, KX revenue had increased 5% to £39.5m, with annual recurring revenue up 8% reported, or 10% at constant currency, to £74.6m.
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First Derivative revenue was £78.8m, down 12%, which the company said showed “a resilient performance against anticipated ongoing challenging market conditions”.
Group revenue declined 7% to £118.2m, reflecting the 12% decline in revenue from First Derivative partially offset by the robust growth in KX. Losses plunged from £1.6m to £11.1m.
Overall, the half-year performance had been in line with expectations, the company said.
And in future, it said KX would have the necessary funding to achieve financial stability and invest in growth and profitability.
Chief executive Seamus Keating said: “We have made significant strategic and operational progress in the first half, with the divestment of First Derivative and strong execution in KX.
“Following the completion of the sale of First Derivative, we expect to return cash to shareholders, in line with our disciplined approach to capital allocation, and KX will be a pure-play, high-growth software business; fully funded and well-positioned to capitalise on the significant and growing global market opportunity.”