Newry-based FD Technologies posts £7.7m loss

FD Technologies is one of Northern Ireland's biggest homegrown technology businesses

Newry-based FD Technologies made a pre-tax loss of £7.7m last year as it undergoes a major restructuring.

Two divisions of the firm are due to sold off with the remaining business focused on software.

The company says it has started the sales process for its consulting division, First Derivative.

Chief Executive Seamus Keating said there had already been interest from private equity and ‘strategic’ buyers.

FD Technologies, formerly known as First Derivatives, is one of Northern Ireland's biggest homegrown technology businesses.

The first stage of the restructuring earlier this year saw its marketing technology division, MRP, merge with US firm CONTENTgine.

FD Technologies owns 49% of the new merged firm but Mr Keating said the intention is to sell that too.

That will leave FD Technologies owning the KX software business, which has been its major strategic focus in recent years.

'Operational challenges'

The aim has been to grow subscription sales of KX products, which has involved significantly increasing sales and marketing spending.

Mr Keating said 2024 had "presented challenges" with KX’s recurring revenue growth coming in below expectations.

"We have addressed the operational challenges and are well placed to execute on the enormous addressable market in the industries we are targeting," he added.

A so-called activist investor, Irenic Capital Management, has recently become the largest shareholder in FD Technologies.

These sort of investors frequently buy into a company to force management to change course but Mr Keating said there was shareholder support for the current strategy.