Global financial services group PraxisIFM has reported solid results after a period of post-acquisition consolidation.
The key points include the following:
• Revenue up by 57% (2018: 21%) to £66.9m (2018: £42.5m)
• EBITDA of £9.8m, up from £7.4m (2018)
• Net profit of £2.3m (2018: £3.4m)
• Organic growth of 8%
• Dividend of 1.5p per share to be declared and paid in February 2020
• 158 staff own 57% of the group’s shares
All prior year comparisons are after restatement of accounts to include consolidation of the Employee Benefit Trust.
According to the Group, its 57% increase in turnover was, as in 2018, achieved through acquisitions (50%) and organic growth.
Chairman Andrew Haining commented: “2019 has seen a combination of organic growth and acquisitions. Those acquisitions extend the Group’s global reach to 19 jurisdictions and provide access to technological expertise that establishes the platform for future development.”
Having spent time delivering the acquisitions, the senior team is now focused on consolidating and integrating processes. The Group’s net profit is down as a result of one-off technical factors associated with integration.
The Group has restated its prior year results to consolidate its share ownership scheme, the Employee Benefit Trust (EBT). This decision, together with a delay in the audit schedule of recently acquired PraxisIFM Netherlands, led to a one-month delay in the publication of the annual results.
The report shows that the Group’s core services – private client and corporate services, fund and pension administration – continue to show strong progress. The private client and corporate and funds divisions grew organically, while the pensions business is developing its technological platform to facilitate longer term growth plans.
Group Chief Executive Officer Cees Krijgsman (pictured) was appointed on 1 May, succeeding Dr Simon Thornton, who stepped down to focus on developing the company’s technology platform. “Technology will play an important role in our ambition and strategy and in all our business areas,” said Mr Krijgsman. “Recent technological advances alter the expectations of our clients and other stakeholders.
“The sector has experienced considerable change both through enhanced regulatory requirements and market consolidation. The business has created a strong platform to take advantage of this market environment. The recent acquisitions provide the basis for continued expansion of the Group.”
The full annual report is available to download here