Tpximpact Holdings Plc · LSE:TPX
Tpximpact — H1 2022 Earnings Presentation
39 slides from Tpximpact's earnings presentation, 2022
Slide 1: Half Year 2022 Results
Half Year 2022 Results TPXimpact
Slide 2: Presentation by
Presentation by Neal Gandhi Oliver Rigby CEO and Co-Founder CFO and Co-Founder
Slide 3: Agenda
Agenda Half Year Summary Financial and ESG Results Operational Review Strategy Outlook Q&A
Slide 4: Half Year Summary
Half Year Summary Neal Gandhi
Slide 5: H1 Summary
H1 Summary Financial Growth Operational Expansion Unitary Structure ● Excellent financial ● Acquisition of Nudge ● Investment for progress Digital, expanding vertical growth reach ● Consolidation ● Continued growth in under TPXimpact key markets including ● Building out our team healthcare 5
Slide 6: Financial and ESG Results
Financial and ESG Results Oliver Rigby
Slide 7: Financial Results/Strong Revenue and EBITDA Growth
Financial Results/Strong Revenue and EBITDA Growth Revenue Gross profit Adjusted EBITDA Adj EBITDA Margin Adj Profit After Tax 77% 57% 83% 40bp 109% to £37.5m to £11.6m to £5.3m to 14.1% to £4.4m (H1 2021: £21.2m) (H1 2021: £7.4m) (H1 2021: £2.9m) (H1 2021: 13.7%) (H1 2021: £2.1m) Organic like-for- li
Slide 8: Our Social Impact (ESG)
Our Social Impact (ESG) Workforce Women Ethnic minorities Communities 837 51% 17% 702 Total employees & Overall representation* Overall representation* Hours donated associates (up 3%) (up 4%) 7.4/10 40% 10% £33k Senior representation* Senior representation* Charitable donations YTD. Employee Satisf
Slide 9: Revenue and EBITDA Growth
Revenue and EBITDA Growth 37.5 21.2 13.4 H1 2020 vs H1 2021 H1 2020 vs H1 2021 ● Growth of 77% ● Growth of 83% ● like-for-like growth of 21% 9
Slide 10: Cash Flow
Cash Flow * Net increase in cash of £4.7m including cash payable to the sellers of Nudge Digital (paid in H2 FY22). 10 Adjusting for this, net cash increase of £2.6m for the period.
Slide 11: Revenue Breakdown
Revenue Breakdown 4% 4% 23% 59% H12021 Recurring Revenue 20% 33% *Recurring: - rolling contracts billed monthly *Repeat: - clients billed in prior years 11
Slide 12: Income Statement (Statutory)
Income statement FY2021 H1 FY22 H1 FY21 £’000 Statutory Income Statement Revenue 37,495 21,175 51,097 (Statutory) Gross Profit 11,629 7,446 16,129 ● Strong revenue growth of 77% compared to prior year Adjusted EBITDA 5,348 2,875 7,101 on a statutory basis and 21% on an organic like-for-like Depreciat
Slide 13: Adjusted Profit Before Tax Reconciliation
Adjusted Profit Before Profit after tax £’000 H1 FY22 H1 FY21 FY2021 Tax Reconciliation Statutory profit/(loss) before tax 559 (1,571) (1,845) Amortisation of ● Adjusted profit before tax measure is more intangibles relating to representative of the underlying performance of the acquisitions 2,486 970 2
Slide 14: Adjusted Earnings Per Share
Adjusted Earnings Per Share Adjusted EBITDA H1 FY22 H1 FY21 FY2021 £’000 ● Due to the acquisitive nature of the Group and its earn out model, an adjusted share count for the purposes of Weighted average basic shares 83,655 56,935 63,784 calculating earnings per share is required Max shares to be iss
Slide 15: Statement of Financial Position
Balance Sheet H1 FY22 H1 FY21 FY2021 Statement of Financial £’000 Position Goodwill 56,616 42,414 53,323 Intangible assets 28,412 10,525 29,370 Tangible assets 555 1,031 737 ● Acquisition of Nudge Digital in the period for an initial Cash 10,413 5,909 5,734 consideration of £5.0m via a combination o
Slide 16: Operational Review
Operational Review Neal Gandhi
Slide 17: Operational Review
Operational Review Organic Acquisition ESG Innovation ● Entrance into Utilities ● Acquisition of Nudge ● Achieved Social ● OpenDialog - new Sector & Growth in Digital - expanding Value Quality Mark Conversational AI Healthcare & vertical reach Level 1 SaaS product Pharmaceuticals ● Launched employee
Slide 18: Our Market
Our Market Neal Gandhi
Slide 19: The world is changing
The world is changing ● The world is changing, with the need for Agile responses, to 21 century challenges, including the more pressing challenges faced by climate change and Covid-19. ● The tipping point in rotation to “new” spending to tackle these challenges is imminent. ● Barriers removed to cop
Slide 20: TAM: £3.2bn today, £3.9bn in 2025
TAM:£3.2bn today, £3.9bn in 2025 ● The UK technology services comprises 46% of our market opportunity this year, versus 33% for Data services and 20% for Design ● Growth rates for Data (8.4%) and Design (8.1%) are higher than for Technology (4.3%)* ● That’s primarily because mid-market providers suc
Slide 21: Strategy
Strategy Neal Gandhi
Slide 22: Becoming TPXimpact
Becoming TPXimpact Breaking down More silos Sector Marketing a effective specialist Forming single brand teams sales multidisciplinary teams Unified Better Shared systems and utilisation Building in services Efficiencies processes ATC function HR, Finance, New HRS, PSA, Finance allowing better Marketi
Slide 23: Becoming TPXimpact
Becoming TPXimpact Addressing More diverse Differentiate as skills Attracting the leadership an employer shortage right talent 50% male/ female split Investment in employee in new leadership experience Launch of a new academy More focus Enhanced Achieving B on impactful investment in Maximising Corp
Slide 24: Margin Growth Levers
Margin Growth Levers London centric wages Attracting the right talent Academy Leveraging Bulgaria ● We have not been ● We currently have a high ● We will launch our ● We have more flexibility affected by wage percentage of contractors dedicated digital to leverage our inflation to same degree transfor
Slide 25: EBITDA % to date
EBITDA % to date ● EBITDA margin has steadily improved since incorporation largely as a result of economies of scale. ● Margin improvements anticipated to continue as we move to one brand, increase our ratio of permanent staff and nearshore delivery where possible. FY HY FYe 25
Slide 26: Our commercial vision for 2025
Our commercial vision for 2025 Commercial Ambitions HY22 Progress To achieve a run rate revenue of £200m (£150m public sector,£50m Private Consensus analyst revenue expectations for FY22 of £77.2m 1 sector) by March 2025 Consensus analyst EBITDA expectations of £11.6m 2 Deliver 10-15% organic revenu
Slide 27: Our ESG vision for 2025
Our ESG vision for 2025 Impact Ambitions HY22 Progress Halve the 21 gaps that we have identified across Closed the overall representation gap for women People representation, pay and inclusion for employees from and are close to doing the same for black and underrepresented backgrounds other minority
Slide 28: Outlook
Outlook Strong Growth New Contracts Confident Start ● We remain focused on ● A record £54m of ● Confident start to H2, embedding our leadership new contracts signed against recently team in TPXimpact for a in H1 upgraded Revenue and strong start in FY23 EBITDA Consensus ● Strong bookings ● Continued s
Slide 29: We welcome your questions
We welcome your questions
Slide 30: Appendix
Appendix
Slide 31: From an impressive collection, to an impressive company
From an impressive collection, to an impressive company Jan 2019 Feb 2019 Mar 2020 Sep 2020 Jul 2021 Sep 2021 human+ Ameo Difrent Nudge Launch of D/SRUPTION Dec 2018 Feb 2019 Jun 2019 Joins Jun 2020 Joins Mar 2021 Joins Launched by Joins Bene Agere The Panoply The Panoply The Panoply The Panoply The
Slide 32: Digital Transformation Market Landscape
Digital Transformation Market Landscape In 2020 Public Sector (£12.9bn) remained by far one of the largest vertical £12.9bn markets in UK SITS, accounting for 23.3% of the total market. Public Sector was a strong performer in 2020 with technology mitigating the impact of the crisis and introducing a
Slide 33: Our Journey to B Corp
Our Journey to B Corp People Planet Community Clients Satisfied and Greener Community Our People happy Meaningful work lifestyles engagement get employees Socially Reduced Green service Our Planet responsible Climate action emissions offering gets employees Diverse talent A community of Community An
Slide 34: More Diverse Leadership
More Diverse Leadership CEO CEO CEO CEO Client Creative CGO Chief GSL NotBinary Panoply Director Director Designer CEO CEO CEO Purpose CFO Head of People Manifesto Questers Arthurly Director M&A Director CEO CEO CEO Systems MD DX Chief of Political Eng’ Nudge Bene Agere Disruption Director Staff Dir
Slide 35: I'm proud to do what I do
“ I’m proud to do what I do as it creates positive impact in people’s everyday lives. Little wows make the difference between a good day and a bad day. Life’s too short to waste time navigating a site - when you should be “I get to shout about the work and especially the people that do the work in a
Slide 36: Transforming recruitment for the NHS
Transforming recruitment for the NHS NHS Business Services Authority NHS Business Services Authority The NHS is the world’s fifth largest employer and their existing Jobs service handles 4 million applications a year for more than 380,000 vacancies. The NHS Business Services Authority (NHSBSA) wanted
Slide 37: Transforming recruitment for the NHS
Transforming recruitment for the NHS NHS Business Services Authority We worked in partnership with NHSBSA and their supplier Through user research, co-design workshops and usability teams to design, build and deliver the service through tests of the existing service in the first phase we produced dis
Slide 38: Transforming recruitment for the NHS
Transforming recruitment for the NHS NHS Business Services Authority 2. Preparing for beta 4. Responding to the pandemic The NHS needed to recruit a lot of people into front-line roles We then prototyped potential solutions based on the quickly, including doctors, nurses and staff to administer disc
Slide 39: Transforming recruitment for the NHS
Transforming recruitment for the NHS NHS Business Services Authority NHS Business Services Authority Throughout our partnership with the NHSBSA, we improved application quality and reduced the amount of time it takes to hire for new roles. Improving the experience for hiring managers and candidates