Final Results

First Derivatives PLC
03 June 2003

for immediate release



                 FIRST DERIVATIVES PLC (the 'Company' or 'FDP')

               Final results for the year ended 28 February 2003

First Derivatives Plc, today announces its year end results for the year ended
to 28 February 2003.  The highlights were:

•        Turnover at  £1.65m (2002: £1.78m);

•        Pre tax profit reduced to £406,000 (2002: £612,000) as a result of
         investment in additional revenue streams;

•        Recovery in pre tax profits for the second six months to 28 February
         2003 from £125,000 to £281,000;

•        Exclusive rights to market and support Kx Systems products;

•        Acquisition of IPR for e-business software from e-hub.com plc; and

•        Announced in May 2003 a joint venture with British Telecom using the
         marketing e-business products.

David Anderson, Chairman, commented: 'Despite the difficult market place in
which the Company operates it has enjoyed a successful first year on AIM and has
benefited from the increased profile the market has given the Company in the
United Kingdom, the United States and Europe.'


Chairman's statement



I have pleasure in reporting on the financial year ended 28th February 2003 of
First Derivatives plc its first year as a company listed on the AIM market.  At
the interim stage the company reported a pre-tax profit of £125,000 on revenues
of £689,000.



The pre-tax profit for the year was £406,000 compared with a profit of £612,000
in the previous year.  Turnover at  £1.649 million compared with £1.778 million
in the previous year.  Earnings per share for the year was 2.4p against 4.3p in
the previous year.  The Board has not recommended a dividend as the funds
generated during the year are required to finance future growth.



The benefits of the Kx Systems Inc ('Kx') investment started to show strength in
the second half of the year. Combined with a recovery in the level of
consultancy business this led to a sharp improvement in profitability in the
second half of the year.



The year has seen a number of strategic moves, further development of business
into capital markets, the strengthening of the relationship with Kx and other US
companies and entry into the e-commerce market.  The client base in capital
markets has been broadened and a significant part of the revenue generated is
now from support contracts which tend to be of a recurring nature.



The company now supports the Kx range of software products worldwide and a new
contract has recently been negotiated in favourable terms.  After the year end
the company exercised its vested options to subscribe for shares in Kx and
further options have been granted.  The continuing success of the Kx product
suite should lead to further revenues from support, customisation and
implementation. Kx products are currently being used by many leading financial
institutions including J P Morgan, Credit Suisse and Credit Lyonnais.



In February this year the company signed an agreement with BT to market a range
of e-business solutions under the BT name.  The range was officially launched
after the financial year end in early May.  Due to the fact that a significant
part of the package was based on software developed by First Derivatives for
e-hub.com plc, it was felt prudent to bring this in-house.  Therefore, this
software was acquired in February this year.



Our first year as a plc has seen the transformation of the company from being
one highly dependent on consultancy to a more broadly based business with two
divisions involved in capital markets, partnership arrangements and e-commerce.
There has been an encouraging start to the new financial year with the
continuation of the recovery seen in the second half of the financial year.



David Anderson
Chairman



Profit and loss account
Year ended 28 February 2003
                                                                              Year ended           Year ended
                                                                             28 February          28 February
                                                   Note                             2003                 2002
                                                                                   £'000                £'000

Turnover - continuing operations                   2                               1,649                1,778

Cost of sales                                                                    (1,186)              (1,152)

Gross profit                                                                         463                  626

Administrative expenses                                                            (284)                 (85)

Other income                                                                         236                   92

Operating profit - continuing operations                                             415                  633

Interest receivable                                                                    9                    -

Interest payable and other similar charges         4                                (18)                 (21)

Profit on ordinary activities before taxation      3                                 406                  612

Tax on profit on ordinary activities               5                               (113)                (182)

Profit on ordinary activities after taxation                                         293                  430

Retained profit brought forward                                                      307                  492

                                                                                     600                  922

Dividends paid                                     8                                   -                (575)

Transfer from reserves                                                                 -                 (40)

Retained profit carried forward                                                      600                  307

Earnings per share                                 9                                2.4p                 4.3p




The company has no recognised gains or losses other than those included above
and therefore no separate statement of total recognised gains and losses has
been presented.

There is no material difference between the company's results as reported and on
a historical cost basis.  Accordingly no note of historical cost profits and
losses has been prepared.

The turnover and operating profit amounts as stated above are derived solely
from continuing operations.

Balance sheet
Year ended 28 February 2003


                                                                   At 28 February             At 28 February
                                                                             2003                       2002
                                             Note              £'000        £'000         £'000        £'000
Fixed assets
Intangible assets                            10                               900                          -
Tangible assets                              11                               313                         37

                                                                            1,213                         37
Current assets
Debtors                                      12                  741                      1,514
Cash at bank and in hand                                         555                          -

                                                               1,296                      1,514
Creditors - amounts falling due
  within one year                            13                (913)                    (1,184)

Net current assets                                                            383                        330

Total assets less current liabilities                                       1,596                        367

Creditors - amounts falling due
  after more than one year                   14                             (215)                          -

Provisions for liabilities and charges       15                               (5)                       (10)

Net assets                                                                  1,376                        357

Share capital and reserves
Called-up share capital                      16                                61                         50
Share premium account                        17                               715                          -
Profit and loss account                      17                               600                        307

Equity shareholders' funds                   18                             1,376                        357



These financial statements were approved by the board of directors on 30 May
2003.







Brian Conlon
Director


Cash flow statement
Year ended 28 February 2003
                                                                              Year ended           Year ended
                                                                             28 February          28 February
                                                   Note                             2003                 2002
                                                                                   £'000                £'000

Cash inflow from operating activities              24                                694                  844

Returns on investment and servicing
  of finance                                       25a                               (9)                 (22)
Taxation                                           25b                             (170)                (130)
Capital expenditure                                25c                             (412)                 (15)
Equity dividend                                    25d                                 -                (575)

Cash inflow before financing                                                         103                  102

Financing                                          25e                               720                 (15)

Increase in cash in the period                                                       823                   87





Reconciliation of net cash flow to
  movement in net funds/(debt)
Year ended 28 February 2003
                                                                              Year ended           Year ended
                                                                             28 February          28 February
                                                   Note                             2003                 2002
                                                                                   £'000                £'000

Increase in cash in the period                                                       823                   87
Decrease in debt                                                                       8                   16

Change in net debt resulting from cash flows       26                                831                  103
New long term loan                                                                 (237)                    -

Movement in net debt in the period                                                   594                  103
Net debt at start of the period                                                    (271)                (374)

Net funds/(debt) at end of the period              26                                323                (271)




1     Accounting policies



The following accounting policies have been applied consistently in dealing with
items which are considered material in relation to the company's financial
statements.



Basis of accounting

The financial statements have been prepared under the historical cost accounting
rules.



Basis of preparing the financial statements

The financial statements have been prepared on the going concern basis which
assumes that the company will continue in operational existence for the
foreseeable future.



Intangible fixed assets

Intangible fixed assets such as intellectual property rights over software are
capitalised where purchased on an arm's length basis.  Such assets are amortised
over their estimated useful lives, assumed to be 5 years.



Tangible fixed assets

Tangible fixed assets are stated at historical cost, less accumulated
depreciation.  Depreciation is calculated to write off the original cost less
the expected residual value of fixed assets over their anticipated useful lives
at the following annual rates:


Motor vehicles                                       -        25% straight line
Office furniture and equipment                       -        25% straight line
Plant and equipment                                  -        25-50% straight line
Land and buildings                                   -        2% straight line



Government grants

Government grants are recognised in the profit and loss account so as to match
them with the expenditure towards which they are intended to contribute.



Pension plans

The company operates 'Personal Pension Plans' whereby the company agrees to pay,
for eligible employees, a defined contribution into the employee's own personal
pension scheme.  The pension charge represents contributions payable by the
company for the period.  The company's liability is limited to the amount of the
contribution.  The liability for meeting future pension payments rests solely
with the employee's personal pension scheme.



Taxation

The charge for taxation is based on the profit for the year and takes into
account taxation deferred because of timing differences between the treatment of
certain items for taxation and accounting purposes. Deferred tax is recognised,
without discounting, in respect of all timing differences between the treatment
of certain items for taxation and accounting purposes which have arisen but not
reversed by the balance sheet date, except as otherwise required by FRS 19.






2     Turnover



Turnover represents the invoiced value of services to third parties exclusive of
value added tax and trade discounts and includes expenses recharged to
customers.



The directors are of the opinion that disclosure of the analysis of turnover and
profit by geographical market would be prejudicial to the interests of the
company.





3     Profit on ordinary activities before taxation
                                                                              Year ended        Year ended
                                                                             28 February       28 February
                                                                                    2003              2002
                                                                                   £'000             £'000
Profit on ordinary activities before taxation
has been arrived at after charging:

Depreciation                                                                          20                19
Auditors' remuneration - audit                                                        10                10
                                       - tax                                          47                14
Hire of premises - rentals payable under operating lease                              14                13





4     Interest payable and other similar charges
                                                                              Year ended        Year ended
                                                                             28 February       28 February
                                                                                    2003              2002
                                                                                   £'000             £'000

On bank loans and overdrafts                                                           3                21
On other loans                                                                         4                 -
Other                                                                                 11                 -

                                                                                      18                21


5     Tax on profit on ordinary activities
                                                                              Year ended        Year ended
                                                                             28 February       28 February
                                                                                    2003              2002
                                                                                   £'000             £'000

UK corporation tax for the period                                                    136               175
Adjustments relating to earlier years                                               (18)                 -

Total current tax charge                                                             118               175

Deferred tax (see note 15)                                                           (5)                 7

                                                                                     113               182



The basis by which taxation is calculated is stated in Note 1.



The current tax charge for the period is lower (2002: lower) than the standard
rate of corporation tax in the UK.  The differences are explained below:


                                                                              Year ended        Year ended
                                                                             28 February       28 February
                                                                                    2003              2002
                                                                                   £'000             £'000
Current tax reconciliation
Profit on ordinary activities before tax                                             406               611

Current tax at 30% (2002: 30%)                                                       122               183

Effects of:
Expenses not deductible for tax purposes                                               9               (5)
Capital allowances for period in excess of depreciation                                5                 1

Small companies relief                                                                 -               (4)
Adjustments to tax charge in respect of previous periods                            (18)                 -

Total current tax charge                                                             118               175




6     Staff numbers and costs



The average weekly number of persons (including the directors) employed by the
company during the year end is set out below.  The company employed 28 people at
the year end (2002: 22).


                                                                              Year ended        Year ended
                                                                             28 February       28 February
                                                                                    2003              2002
                                                                             Average No.       Average No.

Administration                                                                         2                 3
Technical                                                                             25                19

                                                                                      27                22
Their total remuneration was:
                                                                                   £'000             £'000

Wages and salaries                                                                   723               607
Social security costs                                                                 71                60
Other pension costs                                                                   26                26

                                                                                     820               693



7     Emoluments of directors



       The remuneration paid to the directors was:
                                                                              Year ended        Year ended
                                                                             28 February       28 February
                                                                                    2003              2002
                                                                                   £'000             £'000

Aggregate emoluments (including benefits in kind)                                     99                37
Company pension contributions                                                         20                17

                                                                                     119                54



During the period there were two directors accruing benefits under a defined
contribution pension scheme (28 February 2002: 2).



The aggregate emoluments and company pension contributions of the highest paid
director amounted to £55,000 and £4,000 respectively during the year (2002:
£24,000 and £16,000 respectively).




8     Dividend paid
                                                                              Year ended        Year ended
                                                                             28 February       28 February
                                                                                    2003              2002
                                                                                   £'000             £'000

Interim dividend paid on ordinary shares                                               -               575



       No final dividend for either year was proposed.





9     Earnings per ordinary share



       The calculation of earnings per share is based on the profit on ordinary
activities after taxation and before deduction of dividend appropriations in
respect of equity shares, namely £293,000 (2002: £430,000).  The number of
ordinary shares outstanding at 28 February 2003 and ranking for dividend was
12,296,158.  Earnings per share for the period ended 28 February 2002 have been
calculated based on 10,000,000 shares outstanding.


                                                                              Year ended        Year ended
                                                                             28 February       28 February
                                                                                    2003              2002
                                                                         Pence per share   Pence per share

Earnings per share                                                                   2.4               4.3






10   Intangible fixed assets
                                                                                                      2003
                                                                                                     £'000

At 1 March 2002                                                                                          -
Additions                                                                                              900

At 28 February 2003                                                                                    900



The purchase of the intangible fixed asset in the current year relates to the
purchase of the software asset discussed in note 22.  The purchase was made on
28 February 2003 and accordingly no depreciation has yet been charged.





11   Tangible fixed assets
                                                                     
                                                                        


                                       Land and Plant and equipment  Office furniture
                                      buildings                         and equipment           Total
                                          £'000               £'000             £'000           £'000
Cost
At 1 March 2002                               -                  94                25             119
Additions                                   292                   4                 -             296

At 28 February 2003                         292                  98                25             415

Depreciation
At 1 March 2002                               -                  63                19              82
Charged during period                         2                  15                 3              20

At 28 February 2003                           2                  78                22             102

Net book value
At 28 February 2003                         290                  20                 3             313

At 28 February 2002                           -                  31                 6              37



The basis by which depreciation is calculated are stated in Note 1.






12   Debtors
                                                                             28 February       28 February
                                                                                    2003              2002
                                                                                   £'000             £'000
Trade debtors                                                                        470             1,065
Sundry debtors                                                                       255                58
Prepayments                                                                           16               391

                                                                                     741             1,514



13   Creditors - amounts falling due within one year
                                                                             28 February       28 February
                                                                                    2003              2002
                                                                                   £'000             £'000
Bank overdraft                                                                         -               267
Trade creditors                                                                       59               141
Other taxation and social security                                                    24               103
Accruals and deferred income                                                          59               300
Corporation tax                                                                      311               360
Other creditors                                                                      111                 9
Other loans                                                                           18                 4
Capital creditor                                                                     331                 -

                                                                                     913             1,184



14   Creditors - amounts falling due after more than one year
                                                                             28 February       28 February
                                                                                    2003              2002
                                                                                   £'000             £'000
Loan                                                                                 215                 -

                                                                             28 February       28 February
                                                                                    2003              2002
                                                                                   £'000             £'000
Analysis of debt:
Debt can be analysed as falling due:
In one year or less, or on demand                                                     17                 -
Between one and two years                                                             19                 -
Between two and five years                                                            68                 -
In five years or more                                                                141                 -

                                                                                     215                 -

The loan is secured on the company's property in London.


15   Provisions for liabilities and charges
                                                                             28 February       28 February
                                                                                    2003              2002
                                                                                   £'000             £'000
Deferred taxation
At beginning of period                                                                10                 3
(Release)/charge for the period (see note 5)                                         (5)                 7

At end of period                                                                       5                10



The basis by which taxation is calculated is stated in Note 1.  There is no
unprovided deferred tax.



The elements of deferred taxation are as follows:
                                                                            28 February       28 February
                                                                                   2003              2002
                                                                                  £'000             £'000
Difference between accumulated depreciation and
  amortisation and capital allowances                                                 5                10

Deferred tax liability                                                                5                10





16   Share capital
                                                                 28 February                28 February
                                                                        2003                       2002
                                                         Number        £'000          Number      £'000
Equity shares
Authorised
Ordinary shares of 0.5pence each                     20,000,000          100      20,000,000        100

Issued, allotted and fully paid
Ordinary shares of 0.5pence each
                                                     12,296,158           61      10,000,000         50



       During the financial year 2,296,158 Ordinary shares of 0.5 pence were
issued at 50 pence each.






17   Share premium and reserves
                                                                       Share premium      Profit and loss
                                                                             account              account
                                                                               £'000                £'000

At beginning of year                                                               -                  307
Retained profit for the period                                                     -                  293
Premium on share issues                                                        1,137                    -
Share issue expenses                                                           (422)                    -

At end of year                                                                   715                  600





18   Equity shareholders' funds
                                                                         28 February          28 February
                                                                                2003                 2002
                                                                               £'000                £'000

Profit for the financial year                                                    293                  430
Dividends paid                                                                     -                (575)
Net proceeds on issue of share capital                                           726                    -

Increase/(reduction) in shareholders' funds                                    1,019                (145)

Opening shareholders' funds                                                      357                  502

Closing shareholders' funds                                                    1,376                  357





19   Commitments and contingencies



There were no capital commitments at either period end, with the exception of
the contingent commitment to make additional payments under a software purchase
agreement (note 22).





20   Leasing commitments



       Annual commitments under non-cancellable operating leases are as follows:


                                                                  28 February 2003            31 March 2002
                                                                          Land and                 Land and
                                                                         buildings                buildings
                                                                             £'000                    £'000
Operating leases which expire:
In the second to fifth years inclusive                                          12                       12




21   Contingent liabilities



Contingent liabilities exist in respect of grants received by the company,
whereby, in the event of the company failing to meet one or more of the
conditions contained in the letters of offer to the company, the company would
be liable to repay grant.





22   Related party transactions



Brian Conlon is a shareholder of e-hub.com plc.  During the period the company
traded with e-hub.com plc on a normal commercial basis resulting in sales of
£228,760 (2002: £202,000).  The amount due by e-hub.com plc to the company at 28
February 2003 amounted to £Nil (2002: £536,000).



Included within capital creditors is an amount due to e-hub.com plc of £331,000.



During the year the company purchased a software asset from e-hub.com plc for a
minimum consideration of £900,000.   Of this total consideration £550,000 was
offset against a debtor balance owed by e-hub.com plc.  Additional consideration
will be paid, at a rate of 20% of future sales of the software to e-hub.com plc
up to a maximum of another £1,100,000.  This transaction was approved by the
shareholders at an extraordinary general meeting.



The company is charged rent annually for the use of the managing director's
apartment located in Kensington, London.  The charge incurred during the
financial year amounted to £14,500 (2002: £29,000).





23   Ultimate controlling party



The company is controlled by Brian Conlon, its majority shareholder.





24    Reconciliation of operating profit to

net cash inflow from operating activities
                                                                          Year ended           Year ended
                                                                         28 February          28 February
                                                                                2003                 2002
                                                                               £'000                £'000

Operating profit                                                                 415                  633
Depreciation on tangible fixed assets                                             20                   20
Decrease in debtors                                                              224                  275
Increase/(decrease) in creditors                                                  35                 (84)

Net cash inflow from operating activities                                        694                  844




25   Analysis of cash flows for headings in the cash flow statement


                                                                          Year ended           Year ended
                                                                         28 February          28 February
                                                                                2003                 2002
                                                                               £'000                £'000
a)   Returns on investment and servicing of finance
     Interest paid                                                              (18)                 (22)
     Interest received                                                             9                    -
     Net cash inflow from returns on
      investment and servicing of finance                                        (9)                 (22)
b)   Taxation
     Corporation tax paid                                                      (170)                (130)
c)   Capital expenditure
     Purchase of tangible fixed assets                                         (412)                 (15)
d)   Equity dividends paid
     Dividends on equity shares                                                    -                (575)
e)   Financing
     Repayment of long term loan                                                 (5)                 (15)
     Issue of share capital                                                      725                    -

                                                                                 720                 (15)





26   Analysis of changes in net debt during the period


                                 Cash in      Bank         Debt due           Debt due
                                 hand         overdrafts   within one year    after one year    Total
                                 £            £            £                  £                 £

Balance at 1 April 2001          -            (354)        (16)               (4)               (374)
Cash flow                        -            87           16                 -                 103
Other non cash change            -            -            (4)                4                 -

Balance at 1 April 2002          -            (267)        (4)                -                 (271)
Cash flow                        556          267          8                  -                 831
Other non cash change            -            -            (22)               (215)             (237)

Balance at 28 February 2003      556          -            (18)               (215)             323




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