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John Allwood Non-executive chairman

Chairman's statement FY19

It is my pleasure to welcome you to the Company’s annual report for the year to 31 March 2019. It has been another strong year of progress for the Group with growth in all key adjusted financial metrics, as has been the case in each reporting period since the Company listed on AIM in 2014.

Key financial highlights of the Group

Revenue (£m)
Gross Profit (£m)
  • Revenue increased 28% to £142.7m (2018: £111.4m) of which 17% is organic
  • Gross profit increased 23% to £62.6m (2018: £50.7m) of which 7% is organic
  • Organic growth of 14% on a constant currency basis excluding MTN in Middle East and Africa (MEA) region
  • Strong gross profit growth in Europe and Americas of 43% (16% organic) with the region contributing over 70% of Group gross profit
  • Both the Asia-Pacific (APAC) region and enterprise business in South Africa delivered strong organic gross profit growth of 14% and 20% respectively on a constant currency basis
  • Adjusted EBITDA increased 35% to £18.0m (2018: £13.4m)
  • Adjusted profit after tax increased 39% to £10.8m (2018: £7.8m)
  • Adjusted cash generated from operations increased 47% to £16.9m (2018: £11.5m) with strong cash conversion of 94% (2018: 86%)
  • Operating profit on a statutory basis of £1.0m (2018: £2.8m) and loss after tax on a statutory basis of £1.3m (2018: profit after tax of £0.8m) after charging contingent consideration related expenses, acquisition costs and amortisation of acquired intangibles of £13.0m before tax (2018: £7.3m) and £12.1m after tax (2018: £7.0m)
  • Net debt of £7.5m at 31 March 2019 (2018: net cash of £4.3m). This is after completion of the Impact Mobile acquisition during the year, acquired for net cash of £16.1m
  • Established track record of performance since IPO with 5-year revenue CAGR of 27% and 5-year gross profit CAGR of 18%

Jay Patel Group Chief Executive Officer

Chief Executive's statement FY19

I am pleased to report on a year of significant strategic and operational progress as well as strong financial performance.

The Company has been built to capitalise on the structural shift in how businesses communicate and interact with their customers. As businesses increasingly use digital channels and mobile centred engagement to improve customer experience and reduce costs, the Group’s portfolio of software and services are designed to meet this need.

Operational & strategic highlights

  • Strong organic growth from Europe and Americas, APAC and enterprise business in South Africa
  • Number of clients that provide more than £500k p.a. revenue increased to 40 (33 in FY18) and clients with revenues between £100k p.a. and £500k p.a. increased to 83 (43 in FY18)
  • Enhanced operating leverage benefitting from past investment in partnerships and R&D, with EBITDA margin up to 28.8% (2018: 26.4%.)
  • Enhanced Enterprise communications platform as a service (”CPaaS”) offering with the recent launch of new communications channels such as WhatsApp Business and Apple Business Chat
  • Considerable commercial and technical progress made with partners including BT, Telia, Salesforce and NICE inContact
  • Increasing focus on North American market, with good progress made through acquisition of Impact Mobile, which is performing as expected, and additional senior management hires and investment

Summary & Outlook

  • Momentum in customer communications sector for greater use of digital channels and more automation
  • Global opportunity to be category leader
  • Established client relationships, pipeline of new deployments and high proportion of recurring revenues provide great foundation for further growth
  • Continuing investment in partnerships and new customer engagement technologies
  • FY20 started well with trading in line with expectations

Annual report & financial statements