Slide 1: Financial results for the year ended 28 February 2023
Financial results for the year ended 28 February 2023 Tuesday, 23 May 2023 Neil Murphy Chief Executive Officer Andrew Holden Chief Financial Officer
Slide 2: Another strong year of sales and profit growth
Another strong year of sales and profit growth Gross invoiced income Gross profit A djusted operating profit Cash £1,439.3m £129.6m £56.4m £73.0m +19.1% +20.7% +21.8% FY22 £67.1m Revenue Earnings per share AOP/Gross profit Cash conversion £184.4m 16.9p 43.5% 84.3% +26.5% +23.0% FY22 43.1% FY22 131.9
Slide 3: Proven track record of strong performance
Proven track record of strong performance Strong ten-year CAGR, including the highly successful acquisition of Phoenix Software in FY18 Continued CAGR of >20% since IPO, with Gross Profit growth which is purely organic Gross Invoiced Income Gross Profit Adjusted Operating Profit 10 year 10 year 10 y
Slide 4: Vendors and partners
Vendors and partners 1. Leading UK provider of software, IT security, cloud services and hardware We have strong relationships with the world’s leading vendors of cyber security and cloud services 2. Long-standing and strategic relationships Trusted partnerships with more than 100 vendors and distri
Slide 5: A deep and embedded partnership with Microsoft
A deep and embedded partnership with Microsoft $1.6bn Full Azure 4k+ #1 UK Service BTG contribution Partner Migration Cloud Solution to Microsoft FY22 revenue Partner Partn er an d Expert MSP Provider customers Microsoft Licensing, Services and Managed Service Provider Accreditations One of first to
Slide 6: Trusted customer relationships at our core
Trusted customer relationships at our core We pride ourselves on our clear purpose and strategy, and at the heart of that is a focus on our customers. As our customers grow and evolve, so do their IT requirements. ⚫ Successfully pursued our strategy Gross Profit from existing customers Building on c
Slide 7: Consistent growth in customer base
Consistent growth in customer base A strong track record of increasing Gross Profit per customer ⚫ Added more than 600 net new Strong track record of increasing Gross Profit per customer customers in FY23, lifting total number of Total customer numbers and total Gross Profit per customer customers t
Slide 8: Financial review
Financial review Andrew Holden, Chief Financial Officer Financial results for year ended 28 February 2023 8
Slide 9: Strong operational performance
Strong operational performance Gross Profit of £129.6m A djusted Operating Profit of £56.4m Up Up 20.7% 21.8% ⚫ Strong GII growth across software, hardware and services, driven by continued corporate and public sector demand ⚫ Increase in GP/GII from 8.9% to 9% as the business continues to focus on
Slide 10: Segmental analysis
Segmental analysis Microsoft Adobe AWS Make up VMWare of Gross GII GII Mimecast Checkpoint Invoiced by sector by vendor Citrix Income(GII) Dell Oracle Crowdstrike Rubrik Sophos Software 93% Public 60% Darktrace Hardware 3% Corporate 40% Snow Other Services 4% ⚫ Services and hardware growing at a sli
Slide 11: Managing in an inflationary environment
Managing in an inflationary environment Costs breakdown Employees Salaries Commissions and Bonuses IT, systems, consumption and support Share-based payments Depreciation and Amortisation Professional Fees Training and staff welfare Physical Infrastructure Other Marketing, travel and entertainment Sa
Slide 12: Cash flow
Cash flow Cash conversion by each half Cumulative Cash Conversion FY23 FY22 £’m £’m AOP Cash Linear (Cash) AOP Cash Cash flow Cash generated from operations 48.9 61.7 Payments for fixed assets (1.3) (0.6) Operating Cash Flow after Capex 47.6 61.1 Net interest (paid)/received (0.5) (0.5) Taxes paid (
Slide 13: Capital allocation and dividends
Capital allocation and dividends Capital allocation Full year dividend: 5.1p The Group’s capital allocation policy: Our dividend policy is to distribute 40% of post-tax pre-exceptional earnings to shareholders ⚫ Future growth ⚫ M&A The Board is pleased to propose a final dividend of 5.1 pence per sh
Slide 14: Our commitment to sustainability
Our commitment to sustainability Environmental ⚫ Setting additional targets under our low-carbon action plan − Ongoing implementation of Scope 1 and 2 reductions, and Scope 3 engagement and analysis − Partnering with environmental specialists to further our carbon reduction activities − Appointed ou
Slide 15: Summary and outlook
Summary and outlook Neil Murphy, Chief Executive Officer Financial results for year ended 28 February 2023 15
Slide 16: Our proven strategy for growth
Our proven strategy for growth Expand Increase customer wallet base share ⚫ Boosting our sales capacity with regular new sales intakes ⚫ Maintain customer service excellence ⚫ Regionalise sales capacity ⚫ Focus on depth and strength of our capabilities ⚫ Target marketing in all segments ⚫ Optimise s
Slide 17: Employees drive our winning, can-do culture
Employees drive our winning, can-do culture 70 Bytes and Phoenix 8th 7th Strong employee ‘Great Place place for Phoenix place for Net Promoter to W ork ‘Best W orkplace for Phoenix ‘UK Best Score Certified’ 20 22 W omen’ 20 22 W orkplaces’ 20 23 ⚫ Culture of innovation, collaboration, openness, empo
Slide 18: Summary and Outlook
Summary and Outlook More of the same with continued momentum from last year Large addressable market with persistent tailwinds We expect to deliver continued Gross Profit growth and increases in market share Demand has remained strong with no perceptible change in customer behaviour Group is in grea
Slide 19: Any questions?
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