TIDMELIX
RNS Number : 0434R
Elixirr International PLC
27 February 2023
ELIXIRR INTERNATIONAL PLC
("Elixirr", the "Company" or the "Group")
Trading Update
Elixirr International plc (AIM:ELIX), an established, global
award-winning challenger consultancy, is pleased to provide an
update on trading for the year ended 31 December 2022 ("FY22").
Highlights
-- Subject to audit, FY22 results expected to be in line with market expectations
-- Revenue of approximately GBP70.7m (FY21: GBP50.6m)
o An increase of 40% in absolute terms year on year
o Underlying organic revenue growth of 18% year on year
o Elixirr continues to gain market share
-- Adjusted EBITDA of approximately GBP20.5m (FY21: GBP15.7m)
-- Adjusted EBITDA margin of 29%, ahead of previous guidance
-- Cash of GBP20.4m with no debt leaving the Group strongly
positioned to pursue its growth strategy
-- Given strong cash performance, proposed final dividend for
FY22 of 10.8p per share, an increase of 160%
-- FY23 revenue expected to be GBP85-87m, with Q1 currently
trading ahead of this and a record revenue month in January 2023.
Growth trajectory expected to continue into FY24
-- Continued focus on 4 pillar growth strategy with progress across all pillars
-- Acquired iOLAP with no dilution to existing shareholders
-- Strong M&A pipeline subject to rigorous and disciplined diligence process
-- The Group will release full results for FY22 on 3 April 2023
Stephen Newton, CEO of Elixirr, commented: "Elixirr delivered
growth on all key metrics during FY22. It was particularly pleasing
to see the improved value creation from using all four pillars to
grow our firm - it is the year that brought our IPO thesis
(coupling organic and inorganic growth) to life. The turbulent
macroeconomic backdrop and our strategic purchases have made
Elixirr's services even more relevant at a board level as we help
our clients to navigate the changing business environment. The
momentum we have delivered in 2022 is accelerating in 2023, and we
expect further growth across all our pillars as the year
progresses."
Trading for FY22 was strong with all metrics in line or above
market expectations. The Group's solutions were in high demand as
we assisted clients in addressing their key boardroom challenges.
Elixirr's broad range of services, including business
transformation, cost-reduction - and with the addition of iOLAP,
data expertise - were of great relevance amid volatile market
conditions for many businesses.
Subject to the completion of the audit for FY22, the Group
expects to record revenue of approximately GBP70.7m, an increase of
40% on FY21 revenue and within previous guidance. This is also well
ahead of the 6% average for the Consulting industry since 2007,
demonstrating how Elixirr continues to gain market share. Elixirr
achieved this revenue notwithstanding that two of its clients were
acquired during the period and a management decision to exit lower
margin revenue in acquired businesses to sustain the quality of our
earnings. Excluding the impact of these two factors, underlying
organic revenue growth delivered by the partner team was 18%
including the impact of a major client change programme coming to
an end (or 29% excluding the impact of the ending of this
programme).
Adjusted EBITDA is expected to be approximately GBP20.5m, in
line with our previous guidance that Adjusted EBITDA would exceed
GBP20m. The Adjusted EBITDA margin is expected to be 29%, above the
previous 27-28% guidance.
Cash balances at 31 December 2022 were GBP20.4m with the Group
having no debt. The year-end cash balance reflects the financing of
all the iOLAP initial consideration without any dilution of
shareholders. We have also used our cash reserves to buy shares to
minimise dilution when using our shares to incentivise
employees/partners or buy businesses. We have not had a dilution
event since April 2021.
Given FY22 performance and the year-end cash position, the Board
will recommend a final dividend for FY22 of 10.8p per share to
shareholders at the AGM in June 2023. This is an increase of 160%
on the FY21 final dividend with a total cash cost of GBP5.0m.
2022 is the year we have seen our 4-pillar growth strategy come
to life with strong organic growth from our existing, promoted and
hired partners, complemented by our acquisition of iOLAP and the
opportunities that provides to sell additional services to our
clients. Our progress on all four strategic growth pillars
includes:
-- Stretching our current partner team - we achieved underlying
organic revenue growth of 18% and increased revenue per partner by
13%
-- Promoting partners from within the firm - we have promoted
two experienced principals to partner on 1 January 2023, with a
further two principals to join the partner team in October 2023
-- Hiring new partners - we made two successful partner hires in
2022, who both brought new clients to Elixirr and are now working
with clients that have the potential to become gold clients
-- Acquiring new businesses - we completed the acquisition of
iOLAP in March 2022, our biggest acquisition to date, furthering
our US growth and bringing key data expertise that we are
cross-selling to our clients across the Group. We remain focused on
inorganic growth with a strong pipeline and dedicated M&A team,
however we are rigorous with our screening and diligence processes
to ensure that we only complete high quality transactions.
2023 has also started strongly with organic growth accelerating
in Q1. January 2023 was a record revenue month for the business,
with absolute revenue growth of 76% against January 2022 and
organic growth of 29%. Expectations for full year FY23 are for
revenue of GBP85-87m with Q1 currently trading ahead of this.
A more detailed update on expectations for full year FY23 will
be provided by the Directors in conjunction with the release of the
full year results for FY22 on 3 April 2023.
For further Information please contact:
Elixirr International plc
Stephen Newton, CEO
Graham Busby, CFO
Public and Investor Relations contacts:
Caroline Pitt
investor-relations@elixirr.com
finnCap Ltd (Nominated Adviser & Sole
Broker)
Christopher Raggett, Alice Lane, Sunila +44 (0)20 7220 0500
De Silva (ECM)
About Elixirr International plc
Elixirr is an established global award-winning management
consultancy, challenging the larger consultancies by delivering
innovative and bespoke solutions to a repeat, globally-recognised
client base.
Elixirr was founded in 2009, by Stephen Newton, Graham Busby,
Ian Ferguson, Andy Curtis and Mark Goodyear, experienced business
advisors who identified a market opportunity to provide bespoke,
personal services as a 'challenger' to the traditional consultancy
businesses in the market. Elixirr guides its clients to overcome
challenges such as: future-proofing against technological
disruption; development and roll-out of new propositions, products
and services; incubating new businesses; navigating a more complex
and multinational regulatory environment; and project management
and implementation of major change programmes.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR.
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END
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