A two-thirds jump in profits and a 73 per cent uplift in earnings per share – to 10.2p – failed to give First Derivatives’ shares any boost last week. They finished just a touch lower at 275p – which compares with a recommendation level here in December last year of 172.5p. The rate of growth had been well flagged, but chairman David Anderson was also able to give an upbeat assessment of the second half.

The one concern is the news that First Derivatives is in discussions with the California-based financial systems business, Kx Systems, for which it is the global support partner, over the terms of its agreement with the company. Kx Systems accounts for about a third of First Derivatives’ revenues. Any move to trim First Derivatives’ Kx-related income would be a blow, even though the company has been developing its own niche products. In the circumstances, it could be prudent to lock in your profit. Sell.

First Derivatives	AIM	£19.55m	142.50p	0.00p
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Other company articles:
First Derivatives: take your profit			05/10/2007
First Derivatives going well			23/08/2007
First Derivatives wobbles – then recovers			11/05/2007
First Derivatives jumps on trading statement			09/02/2007
‘Strong momentum’ at First Derivatives			08/02/2007