It is my pleasure to introduce our preliminary results, following another strong year of performance.
Since our IPO in 2014 the Group has performed consistently well. During this period we have delivered a 3 year revenue CAGR of 21%, 3 year gross profit CAGR of 16% and a 3 year adjusted EBITDA CAGR of 17%.
During the same period we have generated more than £30m of cash from operations, converting over 100% of adjusted EBITDA to cash.
Key financial highlights of the Group
- Revenue up 46% (organic 7%) to £111.4m (2017: £76.1m)
- Gross profit up 17% (organic 3%) to £50.7m (2017: £43.4m)
- EBITDA up 17% to £13.4m (2017: £11.5m)
- Adjusted profit after tax2 up 4% to £7.8m (2017: £7.5m)
- Profit after tax on a statutory basis of £0.8m (2017: £4.1m) after charging contingent consideration related expenses and acquisition costs
- Established track record of performance with 4 year revenue CAGR of 27%, 4 year gross profit CAGR of 16% and 4 year adjusted EBITDA2 CAGR of 17%
- Strong trade receivable
- 86% conversion of EBITDA to cash from operations
- 8 year cash conversion of over 100% with £70m cash generated from operations
Revenue and Gross Profit
Gross profit (£m)
EBITDA and Cash Generation
Cash generated from operations (£m)
Chief Executive's Statement
I am pleased to report that we have recorded another year of financial, operational and strategic progress across all business units of the Group. We have grown our recurring revenue base and extended our record of profitable cash generative growth. We have continued to invest in technology development, new commercial partnerships as well as in our marketing content and systems.
Operational and strategic highlights
- Strong organic growth from Europe and Americas and India & South East Asia
- New major clients wins in all key sectors
- Multi-year renewal of contract with the Group’s largest banking customer
- Consolidated public sector position with acquisition of Healthcare Communications
- Acquisition of Sumotext in the US, creating a platform for sales into large enterprises
- Multiple deployments of IMIbot.ai plus RCS capability developed into IMIconnect
Summary and outlook
- Global opportunity to be a category leader
- Long standing client relationships with large blue-chips clients provides solid foundation for organic growth
- Acceleration of efforts in building direct sales organisation and expanding partnership strategy
- Continued investment in developing and introducing new technologies
- FY19 trading in line with expectations