The Panoply, a digitally native technology services company, announces its results for the six month period ended 30 September 2019.
● Revenue up 33% to £13.4m (H1 2019: £10.1m2)
● Adjusted EBITDA1 of £0.9m (H1 2019: £0.9m2), reflecting significant investments made into new Group capabilities
● Adjusted EBITDA1, removing the impact of investments into start-ups totalling £0.4m, was up 37.8% to £1.3m (H1 2019: £0.9m2)
● Profit after tax of £0.3m (H1 2019: £(0.7)m)
● Basic earnings per share of 0.01p
● Cash at bank of £4.3m as at 30 September 2019 (H1 2019: £0.3m)
● Sales Backlog3 of £12.8m to 31 March 2020 and £12.2m beyond 31 March 2020
● Continued growth in customer base with 209 billed in H1 2020 (H1 2019: 90)4
● 78% of customers billed in H1 2020 were also billed in 2019 and 2018 demonstrating our long-standing client relationships
● Reduction in reliance on top ten clients which represented 42% of revenue (FY 2019: 54%)
● Clients where two or more Group companies were involved in their engagement totalled £2m, representing 15% of total revenue
● Acquisition of FutureGov completed. Largest acquisition to date, strengthening our position in the public sector and expanding our digital transformation capability
● Now established as a challenger brand in digital transformation in public services with 59% of revenue coming from that sector in the period
● £5m three year revolving credit facility entered into with HSBC to be used for future acquisitions and working capital. £3.55m currently drawn
Significant investments were made in the period into new Group capability around robotic process automation, conversational interfaces and Microsoft .NET development. All these areas have great long-term potential for the Group.
They are already generating revenues and we expect them to become material practices for the Group over the coming years. This, combined with our sales backlog and strong pipeline of business built across the rest of the Group, underpins the expectation that full year forecasts will be achieved.
Neal Gandhi, Chief Executive Officer, commented:
“It has been a very busy period for the Group, and we are delighted that with the acquisition of FutureGov and the increasing collaboration between our group businesses, The Panoply companies are aligning around a clear proposition: a strong digital transformation services provider to the Public Services sector in the UK. Thanks to the unique end-to-end offering we are able to provide to this market, we have won several major clients from across the sector over the period and taking further market share will continue to be a key focus in the second half and beyond.
Our investments into businesses that focus on conversational interfaces and robotic process automation have hit the ground running and are already generating revenues for the Group. Both are set to benefit from significant structural growth trends, and the calibre of clients won so far demonstrate that the offerings we’ve built are best of breed.”
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1 Adjusted EBITDA is a non-IFRS measure that the Company uses to measure its performance and is defined as earnings before interest, taxation, depreciation and amortisation and after add back of exceptional items related to acquisitions made by the Group, fair value adjustments, share based payment charges and pre IFRS 16 adjustments. Further details are set in the Income Statement below.
2 Pro forma results relating to the period prior to the IPO and initial acquisitions adjusted for normalised salaries and bonuses to provide a like for like basis and the same central costs as reported in the current year.
3 The value of contracted revenue that has yet to be recognised.
4 Comparative based on clients billed by four companies acquired at IPO.