First Derivatives, a Newry-based company that provides support services to leading banks in London and New York, reported a surge in profits and revenue in the first half thanks to increased demand for its software and services.

The company, which counts financial institutions such as Merrill Lynch and JP Morgan among its clients, yesterday revealed an 80 per cent jump in pretax profit in the six months to the end of June, to £1.7 million (€2.5 million). Revenue increased 52 per cent to £4.2 million.

First Derivatives acts as a sales and services partner for a Californian software group, whose technology allows market traders and analysts to track price changes on the world's stock and commodity markets, as well as foreign exchange activity.

Brian Conlon, the group's managing director, said demand for its services had grown significantly during the period as financial institutions sought new software to cater for the increased amount of data passing through their machines.

During the period, First Derivatives expanded its geographical reach with assignments in Australia, Singapore and Japan, as well as winning its first contract in Dublin.

The company employs 90 people, compared with about 50 this time last year.

First Derivatives is to pay its first dividend of 1.4 pence a share.