First Derivatives place, a fintech company, has announced today that it had signed a global partnership agreement. This partnership agreement is with none other than Tata Consultancy Services, or TCS, a significant player in international IT services, business solutions organization, as well as consulting.
These two will band together to develop and push out solutions that are based on Kx technology. These solutions will target the client base of TCS across multiple industries.
Heavyweights Banding Together
Through the partnership’s terms, the Kx technology will be used within the transformative solutions of TCS, using it as a time-series database. This will be leveraged to collect fast-moving data from machines, in turn.
TCS stands as a transformation and growth partner for leading corporations across various industries. The firm helps these corporations leverage AI, IoT, and machine learning technologies to reimagine the business models of these corporations completely. Through the Bringing Life To Things™ framework for IoT, TCS is capable of helping its customers develop self-aware, predictive systems. These systems will be capable of sensing and intelligently responding to the changes in their physical environment.
Financial Report Issued Out
First Derivatives has also issued out a report today regarding the results of its full-year to the end of February of 2020. The Group reported an organic growth in revenue for FY20, clocking in at a gain of 9%, totaling at £237.8 million, as compared to last year’s £217.4 million.
Software revenue increased by 13%, and managed services and consulting revenue grew by a factor of 3%. The growth in software was, in turn, led by a growth of subscription and recurring license revenue, which in turn was balanced by the perpetual license revenue. The gross margin had experienced a slight increase, standing at 43% instead of 2019’s 42%. This was due to it being weighted by a higher margin software revenue.
The reported profits before tax had increased as well, by a factor of 9%. As such, the profits total at £18.3 million as opposed to 2019’s £16.7 million. Adjusted profits before tax had decreased by 6%, however, and stands at £25.9 million. 2019’s numbers stood at 27.5 million, in turn.
Both of these numbers were held back due to the increase in interest charges after a completed acquisition of the minority interest within Kx Systems Inc, which totaled at £2.2 million. A further £1.0 million was another factor, coming from the additional interest that relates to lease costs to IFRS 16.
Slightly Lower Adjusted Profits After Tax
The profits after tax reported an increase of 12%, totaling at £14.9 million as opposed to 2019’s £13.2 million. The firm reported diluted earnings per share has increased by 13%, totaling at 54.2p, with 2019’s numbers totally at 47.9p.
When it comes to the adjusted profits after tax for the year, however, the firm experienced a decrease of 7%, clocking in at £21.3 million, with 2019 having shown £22.9 million. According to the report, the significant factors that impacted the earnings per share were attributed to a higher interest charge, as well as an increase in the adjusted tax rate of the Group, having pushed up to 17.8%. Back in 2019, this tax rate was at 16.8%.