Slide 1: Financial results for the half year ended 31 August 2023
Financial results for the half year ended 31 August 2023 Wednesday, 25 October 2023 Neil Murphy Chief Executive Officer Andrew Holden Chief Financial Officer
Slide 2: Continued strong momentum
Continued strong momentum Gross invoiced income Gross profit Adjusted operating profit Cash £1,081.6m £75.3m £33.9m £51.7m +37.6% +15.0% +13.8% H1 FY23 £35.8m Revenue Earnings per share AOP/Gross profit Cash conversion £108.7m 10.6p 45.0% 48.7% +16.3% +17.0% H1 FY23 45.5% H1 FY23 (2.8)% ⚫ Gross invo
Slide 3: Highlights
Highlights People Customers ⚫ Great Place to Work Awards, with 92% of staff recommending ⚫ No customer concentration, but instead a diversified and very large Bytes to friends as a place to work customer base ⚫ Low employee churn, overall headcount now exceeding 1,000 ⚫ Strong growth in GP per custo
Slide 4: Strength in diversification of client base
Strength in diversification of client base Broad vertical market coverage ⚫ Over 200 new clients in H1 FY24 ⚫ A renewal rate of 113% supporting cross- and up-sell strategy ⚫ 10% growth in gross profit per customer in H1 FY24 ⚫ 67/33 gross invoiced income split in public vs corporate sector sales ⚫ N
Slide 5: Deepening our relationship with Microsoft
Deepening our relationship with Microsoft Continuing to expand our relationship after 30 years of working together #1 UK Full Azure Partner Service Migration Partner and Partner Expert MSP ⚫ A deep and embedded partnership with Microsoft, one of the world’s leading software companies ⚫ Microsoft con
Slide 6: Financial review
Financial review Andrew Holden, Chief Financial Officer
Slide 7: Ongoing strong performance
Ongoing strong performance H1 FY24 H1 FY23 Change ⚫ Adjusted operating profit growth of 13.8% reflecting £’m £’m % Gross invoiced income 1,081.6 786.2 37.6% continued investment in headcount to drive growth Split by product ⚫ Expenses growing (17%) ahead of GP growth (15%) as Software 1,027.3 738.4
Slide 8: Cash flow
Cash flow Cash conversion by each half Cumulative cash conversion AOP Cash AOP Cash ⚫ Cash balance a healthy £51.7m after payment of a final and special dividend for FY23 of £30.2m ⚫ Cash conversion in H1 FY24 of 48.7% ⚫ Cash conversion reflects the seasonality evident in historical trends ⚫ Cumulat
Slide 9: Capital allocation and interim dividend
Capital allocation and interim dividend Capital Interim dividend M&A allocation The Group’s capital allocation policy: The Board is pleased to approve an In April 2023 we acquired a 25.1% ⚫ Future growth interim dividend of 2.7 pence per interest in long-term AWS partner, ⚫ Capital projects share, p
Slide 10: Advancing our reputation as a responsible business
Advancing our reputation as a responsible business Environmental ⚫ Furthering our Scope 3 reporting, collecting data for additional relevant categories ⚫ Committed to submit our carbon reduction targets to SBTi for validation ⚫ Second CDP submission completed, rating due in Q4 FY24 ⚫ EV scheme rolle
Slide 11: Summary and outlook
Summary and outlook Neil Murphy, Chief Executive Officer
Slide 12: Our proven strategy for organic growth
Our proven strategy for organic growth ⚫ Cloud Services Consistent delivery of strong double-digit growth Software Asset Management − Focus on 10-year − IT services solutions GP CAGR ⚫ AI solutions – Copilot and Azure AI services mix 17.9% ⚫ Security software ⚫ Boosting our sales capacity with regul
Slide 13: Our strategy in practice
Our strategy in practice Value enhancing ‘land-and-expand’ in practice, supporting our longer-term growth ambitions and ability to continue with our proven track record of double-digit growth NHS ‘Land-and-expand’ in practice Secured a new five-year agreement with the NHS ⚫ Collaboration contract to
Slide 14: Summary and outlook
Summary and outlook Well-placed to continue taking market share and set to benefit from new technologies Tried and tested business model continues to deliver for all of our stakeholders Large addressable market with well-established and persistent tailwinds supported by global IT spend We expect to
Slide 15: Any questions?
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