Panoply Holdings PLC – TPX – Interim Results

Panoply Holdings PLC – TPX – Interim Results

The Panoply, the technology-enabled services group focused on digital transformation, is pleased to announce its results for the six-month period ended 30 September 2020.

 

Financial highlights:

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Revenue up 58% to £21.2m (H1 2020: £13.4m)

Organic like-for-like revenue1 growth of 18%

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Gross profit up 48% to £7.4m (H1 2020: £5.0m)

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Adjusted EBITDA2 up 142% to £2.9m (H1 2020: £1.2m). Actual EBITDA of £0.1m loss (H1 2020: £1.2m profit)

Organic like-for-like adjusted EBITDA2 growth of 37%

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Adjusted profit after tax2 up 163% to £2.1m (H1 2020: £0.8m)

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Adjusted diluted earnings per share2 of 2.6p (H1 2020: 1.3p)

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Loss after tax of £1.7m (H1 2020: £0.3m profit). Loss per share of 2.9p (H1 2020: Earnings per share 0.7p). Loss is attributable to a fair value adjustment of £2.5m reflecting additional share consideration payable to vendors as a result of their actual performance exceeding the initial accounting estimates. These amendments have been announced previously

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Cash conversion3 of 102% (H1 2020: 209%) and cash at bank of £5.9m as at 30 September 2020 (30 September 2019: £4.3m). Net debt of £1.2m (30 September 2019: £0.7m net cash)after net acquisition consideration less cash acquired of £3.1m paid out in the period for Difrent and Arthurly

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Sales backlog as at 1 October 2020 of £17.5m to 31 March 2021 (2020: £12.8m)

 

Operational highlights:

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£25m in total contract wins in H1 2021

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Continued strength as a leading alternative full-service provider in digital transformation to the public sector with 70% of revenue from that sector in the period (H1 2020: 59%)

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Acquisition of Arthurly and Difrent completed, adding to the Group's depth of capabilities in hyperscale cloud projects and expanding its reach in the Healthcare sector. Healthcare now represents 16% of Group revenue on a pro forma basis

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Established its two full-service brands (FutureGov and Foundry4)

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Revenue growth of 288% in previous investment areas of Intelligent Automation and Conversational AI

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Appointment of Rachel Neaman to the Board as a non-executive director post-period end

 

KPIs:

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Continued growth of customer base with 225 billed in H1 2021 (H1 2020: 209)

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High repeatable revenue with 84% of customers billed in H1 2021 also billed in FY 2020, FY 2019 and/or FY 2018

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Top ten clients generating 34% of revenue (H1 2020: 42%), reducing concentration risk

 

Dividend:

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A maiden interim dividend of 0.2 pence per share has been declared for H1. This will be paid on 29 January 2021 to shareholders on the register at the close of business on 8 January 2021.

 

1 Like-for-like relates to H1 2020 being restated to show the numbers for the previous year of the existing and acquired businesses consolidated for the same months as in H1 2021.

2 Adjusted EBITDA, Adjusted profit after tax, and Adjusted diluted earnings per share are after adjustment for non-recurring items and recurring share-based payments and is a non-GAAP measure management uses to assess the underlying business performance (also see financial review). Adjusted EBITDA includes the impact of IFRS 16 for current and prior year reporting. 

3 Cash conversion is calculated based on pre-tax cash from operations and adjusted profit before tax figures which include adjustments made for amortisation related to acquired intangibles, share-based payments and the impact of fair value adjustments.

 

Neal Gandhi, Chief Executive Officer, commented:

 

"COVID-19 has clearly been the defining event of calendar 2020 and I'm hugely proud of our people with their incredible response to working primarily at home. We could not have delivered such incredible growth across all measures including revenue, adjusted EBITDA and new business bookings without their flexibility and energy.

 

To have booked record levels of new business during this time demonstrates to us that the demand for digital transformation is a trend that transcends the normal economic cycles and is set to continue for many years to come. Alongside this, we have continued to execute against our strategy with two acquisitions added in the period and innovation investments made in FY20 now beginning to pay off.

 

The outlook for the Group remains positive with our brand consolidation programme well underway and a number of significant new contracts being signed post-period end. We remain on track to achieve our commercial vision of both £100m revenue and £12-14m adjusted EBITDA, on a run rate basis, by 31 March 2023."

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