Tpximpact Holdings Plc · LSE:TPX
Tpximpact — The Panoply Holdings — H1 2020 Earnings Presentation
29 slides from Tpximpact's earnings presentation, Dec 9, 2019
Slide 1: H1 2020 Interim Results
H1 2020 Interim Results 09 December 2019
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 Limited (the “Company”) and has not been approved by the UK Listing Authority, the Financial Conduct Authority or any other regulatory body nor sho
Slide 3: Presenters
Presenters Neal Gandhi Oliver Rigby CEO and co-founder CFO and co-founder +44 (0)7771 796970 +44 (0)7775 518237 neal.gandhi@thepanoply.com oliver.rigby@thepanoply.com www.thepanoply.com 141-143 Shoreditch High Street London E1 6JE 3
Slide 4: Technology services group focused on UK Public Services
Technology services group focused on UK Public Services End-to-end capability following acquisition of FutureGov Service Organisational User Front End Software Dev Conversational UI/UX RPA Design Design Research Development and Data Ops AI 4
Slide 5: Our Group
We are an expanding global Our Group organisation, assembled from the very best businesses in their field. Oslo-based strategy Leading digital An ecosystem, bringing together and management consultancy agency business leaders to address the key questions around disruption, 360 People innovation and
Slide 6: Public Services Focus
Public Services Focus Revenue for the 6 months ended 30 Revenue for the 6 months ended 30 September 2018. Total £10.1m September 2019. Total up 33% to £13.4m 6
Slide 7: Sector focus
Sector focus Public services - Opportunity for Growth The UK government aims to channel a third of its external spending through small and medium sized enterprises (SMEs) by 2022* Since 2015, Local Government has awarded nearly 400 digital transformation contacts worth £661m – including 31 in the fi
Slide 8: Value Drivers
Value Drivers Digital Transformation in Public Services in the UK represents a huge total addressable market. Our capabilities, differentiated operating model and track record provide the opportunity for us to deliver significant organic growth We have invested in two new automation capabilities in
Slide 9: Our Customers
Our Customers Positive futures through people, design and technology 9
Slide 10: H1 2020 Interim Results
-— The Panoply. H1 2020 Interim Results
Slide 11: Foundations for long term success
Foundations for long term success A robust financial performance achieved alongside significant operational progress across the Group - We have created a powerful digital transformation proposition for the Public Services sector Completed the acquisition of FutureGov in June 2019, a milestone for th
Slide 12: Operational highlights
Operational highlights Strong growth from the Public Services Sector. Robust trading, despite uncertainty from Brexit. Significant progress both organically and by acquisition. Long standing Established Increased cross Group relationships challenger brand in collaboration the Public Service 78% of c
Slide 13: Financial Results
Financial Results ● Revenue up 33% to £13.4m (H1 2018: £10.1m2) ● Adjusted EBITDA1 of £0.9m (H1 2019: £0.9m2), reflecting significant investments made into new Group capabilities ● Adjusted EBITDA1, removing the impact of investments into startups, was up 37.8% to £1.3m (2018: £0.9m2). ● Profit afte
Slide 14: Income statement
Income statement 6 months to 6 months to 12 months to £’000 30 Sep 2019 30 Sep 2018 31 Mar 2019 Income statement Revenue Statutory 13,425 Proforma* 10,130 Statutory 8,153 Revenue Gross Profit 5,040 3,573 3,341 ● Strong revenue growth of 33% ● Public services revenue has grown from £4.6m to £7.9m Ope
Slide 15: Income statement (continued)
Income statement Continued Adjusted EBITDA 6 months to H1 FY20 includes the impact of adopting IFRS 16 30 Sep 2019 £’000 This has resulted in an increase in EBITDA of £278k and a Adjusted EBITDA Pre IFRS 16 884 reduction in profit after tax of £26k compared to pre IFRS 16 adoption. Reversal of IAS 1
Slide 16: Balance sheet
Balance sheet Balance Sheet £’000 30 Sep 2019 Statutory 30 Sep 2018 31 Mar 2019 Acquisition of FutureGov Proforma Statutory ● FutureGov was acquired on 12 June 2019 via a combination of cash and share consideration. A preliminary purchase price allocation has been performed resulting in recognition
Slide 17: Cash Flow
Cash Flow Cash flow 6 months to 6 months to 12 months to Strong cash position at 30 September 2019 of £4.3m despite £’000 30 Sep 2019 30 Sep 2018 31 Mar 2019 significant investments made during the period reflecting the cash Statutory Proforma Statutory generative nature of our subsidiary businesses
Slide 18: Operational Progress
-— The Panoply. Operational Progress
Slide 19: Acquisition
Acquisition FutureGov has been changing public sector organisations through digital transformation for over a decade, using design, technology and organisation development approaches to create public services fit for the 21st century. Pivotal Acquisition Dominic Campbell CEO of A true challenger Lar
Slide 20: Organic growth through collaboration
Organic growth through collaboration Group companies have already collaborated on multiple client engagements. We have introduced a number of organisational design changes to help facilitate future collaboration. Sales Collaboration UK Public Service Cluster Sector Sales Leads Growth Dominic Campbel
Slide 21: Group investments
Group investments We have continued to invest in both new businesses, additional services and bolstered our group level team. All investments have significant long-term potential for the Group, are playing on huge structural trends and are already generating revenues. Launch of human+ Manifesto NFP
Slide 22: Acquisition pipeline
Acquisition pipeline During the period we established our own internal M&A origination team A healthy acquisition pipeline Acquisition pipeline that at period end had 30 companies in it with a combined annual revenue of £150m Nordics, we continue to target acquisitions that are complementary to our
Slide 23: Summary
Summary Strong challenger proposition created for the Public Services sector – well positioned to take market share Capitalising on a structural growth market – Digital transformation is business critical Already winning leading clients in our key verticals Experienced, ambitious management in place
Slide 24: Looking Ahead
Pp Looking Ahead
Slide 25: Outlook
Outlook £25m sales order backlog, including £12.8m to March 2020 We continue to see our group businesses working ever more closely together Our go-to market strategies for our key sectors are becoming increasingly aligned across the Group, and this will be a key focus over the second half of the yea
Slide 26: Thank you!
Thank you!
Slide 27: The Panoply offering
The Panoply offering The Panoply works with organisations to help them embrace the opportunities of the internet era. We are trusted by government, education, charities and industry to design and engineer user-centric solutions to hard problems using modern cloud-based technologies. We do much more
Slide 28: Appendix A
Appendix A Reconciliation of H1 FY19 pro forma EBITDA to normalised pro forma EBITDA £’000 6 months to 30 Sep 2018 Sept 18 Pro Forma Adjusted EBITDA 1,929 Normalisation for salaries (292) Central costs uplift to reflect H1 20 actuals (711) Sept 18 Pro Forma normalised Adjusted EBITDA 926 28
Slide 29: Appendix B
Appendix B Reconciliation of H1 FY20 pro forma adjusted EBITDA £’000 6 months to 30 Sep 2019 Sept 19 Pro Forma Adjusted EBITDA 884 Investment in start-ups 393 Sept 19 Pro Forma Adjusted EBITDA pre investments 1,276 Central costs 957 Sept 19 Pro Forma Adjusted EBITDA pre investments, pre central cost