Tpximpact Holdings Plc · LSE:TPX
Tpximpact — The Panoply Holdings — H1 2021 Earnings Presentation
36 slides from Tpximpact's earnings presentation, Nov 30, 2020
Slide 1: Interim Results
Interim Results For the 6 months ended 30 September 2020 30 November 2020 1
Slide 2: Disclaimer
Disclaimer This presentation and the information contained in it does not constitute a prospectus or admission document relating to The Panoply Holdings plc (the “Company”) and has not been approved by the UK Listing Authority, the Financial Conduct Authority or any other regulatory body nor should
Slide 3: Presenters
Presenters Neal Gandhi Oliver Rigby CEO and co-founder CFO and co-founder 3
Slide 4: Board Members
Board Members Mark Smith Isabel Kelly Chris Sweetland Rachel Neaman Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Mark has held several senior roles in creative and Isabel is the founder of Profit with Purpose, a social Chris qualified as a chartered acc
Slide 5: Introduction and Results Summary
Introduction and Results Summary Neal Gandhi 5
Slide 6: The Group at a glance
The Group at a glance What we do Who we do it for We help our clients use digital technologies to support growth, reimagine ways of working and create products and services that will improve people’s lives. Bringing people together through design, technology-led innovation and transformation, we wor
Slide 7: Competitive Landscape
Competitive Landscape Digital Native (Year of Founding) Market Sweet Spot 2010s 2010 Azure Launched 2008 GitHub 2006 AWS * 2001 Agile Manifesto Niche Full 2000s Service 1990s or Before Digital Migrant 7 (Year of Founding)
Slide 8: Highlights
Highlights REVENUE ● The first half of the year has delivered on our commercial vision of organic and acquisitive growth £21.2m Up 58% (H1 2020:£13.4m) ● Significant growth in profitability and cash conversion Adj EBITDA ● Increase in backlog supporting full year number £2.9m Up 142% (H1 2020:£1.2m)
Slide 9: Financials
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Slide 10: Revenue and EBITDA Growth
Revenue and EBITDA Growth ● Growth of 58% ● Growth of 142% ● like-for-like growth of 18% ● like-for-like growth of 37% 10
Slide 11: Revenue Breakdown H1 2021
Revenue Breakdown H1 2021 £1.8m £0.4m £21.2m £10.6m 8.3% 1.9% 67.0% £4.8m 22.7% *Recurring - rolling contracts, average length 31 months *Repeat - clients billed in the prior year 11
Slide 12: Financial Results
Financial Results Adj DILUTED EPS Interim Dividend SALES BACKLOG CASH 2.6p 0.2p £17.5m £5.9m (H1 2020: 1.3p) Per Share (H1 2020: £12.8m) (H1 2020:£4.3m) £3.1m used in acquisitions Adj EBITDA Central cost as % of excluding central costs Adj EBITDA MARGIN Revenue Adj PROFIT AFTER TAX £3.9m 13.6% 4.9%
Slide 13: Summary of results
Summary of results Income statement Actual Like for £’000 like Non statutory ● Revenue up 58% on a statutory basis due to the impact of successful acquisitions, the Group’s increasing ability to H1 2021 H1 2020 FY 2020 H1 2020 win larger deals and the accelerated move towards digital transformation
Slide 14: Adjusted profit before tax
Adjusted profit before tax Income statement H1 2021 H1 2020 FY 2020 £’000 ● Operating loss before tax in the period of £1.6m which is attributable to the following non-cash (Loss) / profit before tax (1,571) 81 (3,140) items: Loss from movement in FV ○ £2.5m fair value loss recognised in the conside
Slide 15: Adjusted Earnings Per Share
Adjusted Earnings Per Share ● Due to the acquisitive nature of the Group and its Adjusted EPS H1 2021 H1 2020 FY 2020 earn out model, an adjusted share count for the purposes of calculating earnings per share is Weighted average basic shares required. ‘000 56,935 46,270 48,162 Shares relating to fut
Slide 16: Proforma results
Proforma results Income statement Proforma £’000 Non statutory H1 2021 H1 2020 Revenue 25,023 20,365 ● Proforma results are calculated retrospectively, assuming that Gross Profit 8,698 7,242 all companies acquired in FY2020 and FY2021 were part of the Group for the whole reporting and comparative pe
Slide 17: Cash flow
Cash flow Cash flow £’000 H1 2021 H1 2020 FY 2020 Strong cash position at 30 September 2020 of £5.9m Cash generated from operating compared to 31 March 2020 of £4.6m. activities (pre tax) 3,515 1,238 2,751 Net debt of £1.2m due to loan with HSBC of £7.0m Tax (paid) / received (341) 104 (44) Cash gen
Slide 18: Acquisition of Arthurly and Difrent; Statement of Financial Position
Statement of Financial Position Balance Sheet £’000 H1 2021 H1 2020 FY 2020 Acquisition of Arthurly and Difrent Goodwill 42,414 31,321 35,672 ● Arthurly was acquired on 9 June 2020 for initial consideration of £0.6m via a combination of cash (£0.3m) and share Intangible assets 10,525 6,306 8,591 (£0
Slide 19: Strategy
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Slide 20: Current market for digital transformation
Current market for digital transformation We are focused in the right sectors and the right services ● Almost half of respondents (47%) say the pandemic has permanently accelerated digital transformation and the adoption of emergent technologies* ● From 100 senior public sector leaders surveyed by D
Slide 21: Our Offer
Our Offer Business case Discovery Alpha Beta Run creation We believe we are the only modern full-service digital transformation company in the UK that can offer the full range of services 21
Slide 22: Three Strategic Growth Pillars
Three Strategic Growth Pillars Organic Acquisition Innovation Intelligent Automation • Significant wins with Land Registry • Difrent acquisition puts us firmly • Revenue growth of 288% in by FutureGov and Foundry4. in the healthcare sector with previous investment areas of £3.2m and £1.6m respective
Slide 23: Summary and Outlook
Summary and Outlook Neal Gandhi 23
Slide 24: In a strong position to address the market opportunity ahead of us
In a strong position to address the market opportunity ahead of us ● Delivering strong Revenue and EBITDA performance ● Good progress against growth strategy ● Milestone first dividend declared Outlook ● Huge and growing TAM (£20bn by 2025) , with market trends in our favour ● Focusing on improving
Slide 25: Q&A
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Slide 26: Thank you
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Slide 27: Appendix
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Slide 28: Cash conversion
Cash conversion Cash flow £’000 H1 2021 H1 2020 FY 2020 Cash generated from operations 3,515 1,238 2,751 Less payment of lease liabilities (302) (241) (629) ● Cash conversion is calculated based on pre-tax cash from operations and adjusted profit before tax figures Less cash impact of deferred which
Slide 29: Our Vision
Our Vision Sustainable Futures Through Digital Transformation 29
Slide 30: ESG Overview
ESG Overview Environment (Planet) Social (People & Community) Governance • Our carbon emissions • Implemented a Diversity & • ESG Committee Launched, (Scope 1,2 & 3) are detailed Inclusion survey to all group Chaired by Isabel Kelley in our Annual Report. employees. Non-Executive Director • Invested
Slide 31: NHSx AI Lab Strategic Partnership
NHSx AI Lab Strategic Partnership Challenge Impact • Bringing together government, health and care Equipped their teams with everything needed to run a second round of the AI in providers, academics and technology companies Health and Care Award that is more smooth, efficient and strategic • Helped
Slide 32: London Borough of Camden Beacon
London Borough of Camden Beacon Challenge Impact Residents in Camden looking to local government and Helps local public service partners understand and supports the needs voluntary and community sector organisations (VCS) of their communities in a more effective and efficient way for support during
Slide 33: British Red Cross Strategy, automation and delivery
British Red Cross Strategy, automation and delivery Challenge Impact For 150 years the British Red Cross has been helping people in crisis. The Panoply through companies Foundry4, Human+ and Manifesto The impact of this work includes: have partnered with them to provide specialist capabilities to su
Slide 34: NHS BSA Helping NHS improve recruitment
NHS BSA Helping NHS improve recruitment Challenge Impact The NHS Business Services Authority want to encourage and hire the right ● Over 4,000 GPs and NHS Trusts are now hiring through the new NHS people into the right NHS roles across the UK, through the most accessible Jobs platform. and efficient
Slide 35: Conversational AI OpenDialog
Conversational AI OpenDialog Challenge Impact We helped a global technology brand's customers choose a product ● Thousands of transactions are successfully facilitated globally every day. from their range more quickly and easily, driving significantly increased revenue. ● The initial platform was su
Slide 36: Income Statement (Actual)
Income statement H1 2021 H1 2020 FY 2020 Income Statement £’000 (Actual) Adj EBITDA pre central costs 3,904 2,120 5,722 Central costs (1,029) (959) (1,876) ● Central overheads has decreased from 7% of Adj EBITDA post central costs 2,875 1,161 3,846 revenue to 5% of revenue Depreciation (383) (343) (