I am delighted to introduce another set of impressive results.
Group revenue has grown by 46% to £111.4m. Gross profit has increased by 17% to £50.7m and adjusted EBITDA was £13.4m, 17% up on compared to the previous year. We have had another period of strong cash generation, with over 86% of adjusted EBITDA converting to adjusted cash generated from operations.
It has been four years since our IPO, during which time the Group has performed very well.
Key financial highlights of the Group
- Revenue up 46% to £111.4m (2017: £76.1m) of which 7% is organic
- Gross profit up 17% to £50.7m (2017: £43.4m) of which 3% is organicAdjusted EBITDA2 up 17% to £13.4m (2017: £11.5m)
- Adjusted EBITDA up 17% to £13.4m (2017: £11.5m)Adjusted profit after tax2 up 4% to £7.8m (2017: £7.5m)
- Adjusted profit after tax 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
- 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 EBITDA CAGR of 17%
- Good contribution from both the Europe & Americas and the India & SEA regions with gross profit growth of 37% and 18% respectivelyCurrency and economic headwinds and full year impact of major customer contract renewal in MEA region resulted
- Currency and economic headwinds and full year impact of major customer contract renewal in MEA region resulted in 17% decline in gross profit
- Adjusted cash generated from operations of £11.5m (2017: £11.9m) with strong cash conversion of 86% (2017: 104%)
Chief Executive's Statement
I am pleased to report that we have recorded another year of financial, operational and strategic progress across all regions of the Group. We continued to grow year on year, generating strong cash flows whilst investing in ongoing product innovation and IP, sales and marketing activities and new commercial partnerships.
Operational and Strategic Highlights
- Strong organic growth from both Europe & Americas and India & South-East Asia regions
- New major client wins in all regions across mobile operator, financial services, logistics, utilities and government sectors
- Multi-year renewal of contract with the Group’s largest banking customer in the UK
- Consolidated market leading position in the UK, with acquisition of Healthcare Communications providing further access to the public sector
- Acquisition of Sumotext in the US creating a platform for sales into large enterprises in North America
- Revenue synergies achieved from Textlocal, Archer and Infracast acquisitions
- Multiple deployments of IMIbot.ai plus inclusion of RCS capability in the IMIconnect platform
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