First Derivates stumbles on legacy Cognotec debt

Shares in UK capital markets tech house First Derivates slipped in early morning trading as the vendor warned that it may have to take a "significant" provision against an unpaid debt owed to its Cognotec unit.

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First Derivates stumbles on legacy Cognotec debt

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First Derivates acquired Cognotec in 2010 after the Irish FX dealing venture was wound up by debtors.

In a trading update Tuesday morning, First Derivates says that a disputed pre-acqusition debt has arisen from the business.

"The company is robustly pursuing the contracted payments due, but believes that a significant provision against this debtor in the accounts for the year to 28 February 2013 is prudent at this time," states First Derivates. "There are no other legacy issues surrounding the business of Cognotec."

Shares in the vendor moved downwards 7.6% on the news.

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