First Derivatives’ figures for the year to the end of February beat all the predictions made here when I tipped the shares last December (then 172.5p, now 307.5p). That did not stop the shares crashing back ten per cent, before a partial recovery the following day.

The price action says more about the bull position in the shares ahead of the statement than anything contained therein. Profits are up nearly 60 per cent and earnings have risen 72 per cent to 16.5p per share. The number of clients continues to expand and further contracts have been signed with customers brought in by KX Systems, whose trading software First Derivatives supports with sales, marketing, training and consulting work.

Cash flow has risen sharply and the balance sheet is strong. The company is to list in its native Ireland, which should add further liquidity (it is currently on AIM). Continue to hold.

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