2019 Annual Results
The Praxis Group has reported solid results after a period of post acquisitions consolidation.
- Revenue up by 57% (2018: 21%) to £66.9m (2018: £42.5m)
- EBITDA of £9.8m up from £7.4m (2018)
- Net profit of £2.3m (2018: £3.4m)
- Organic growth of 8%
- Dividend of 1.5p per share to be declared and paid in February 2020
- 158 staff own 57% of the Group's shares
The global financial services group is pleased to report an increase in revenue of 57% and as in 2018 this was achieved through a combination of acquisitions (50%) and the remainder organic growth.
Andrew Haining Chairman of the Praxis Group said: '2019 has seen the Group deliver on its aim to grow through a combination of organic growth and acquisitions. Those acquisitions extend the Group's global reach to 19 jurisdictions and provide access to technological expertise that establishes the platform for future development.'
The Group remains a business majority-owned by staff with 158 employees owning 57% of shares. This staff ownership model continues to be a factor highlighted by new clients and provides comfort and longevity to existing and potential investors.
The senior team has spent considerable time and focus delivering the acquisitions and the focus is now on consolidating and integrating processes. The Group's net profit is down as a result of one-off technical factors associated with integration.
'The Board believes that the integration of both people and technological platforms creates the desired base from which to improve our profitability' said Mr Haining.
The Group has restated its prior year results to consolidate its share ownership scheme the Employee Benefit Trust (EBT). This decision together with a delay in the audit schedule of recently-acquired PraxisIFM Netherlands led to a one-month delay in the publication of the annual results.
All three markets for the Group's key services of private client & corporate services fund and pension administration continue to show strong progress. The private client & corporate and funds divisions grew organically while our pensions business is establishing an enhanced technological platform to facilitate longer term growth plans.
Group Chief Executive Officer Cees Krijgsman was appointed on 1 May 2019 succeeding Dr Simon Thornton who stepped down from the role at the end of the financial year after 17 years as CEO and is focusing on developing the company's technology platform to drive efficiency and meet the increasing expectation of clients. 'Technology will play an even more important role in our ambition and strategy and in all our business areas' said Mr Krijgsman.
Recent technological advances alter the expectations of our clients and other stakeholders. I believe that my experience in the technology sector means the business is well placed to develop excellent solutions in this digital era.'
Mr Krijgsman added: 'The sector has experienced considerable change both through enhanced regulatory requirements and market consolidation. The business has created a strong platform to take advantage of this market environment. The recent acquisitions provide the basis for continued expansion of the Group.'
Acknowledging the progress during the year Mr Krijgsman thanked colleagues for their welcome and support during his initial period as CEO. 'I look forward to working alongside them all in the years ahead and lead this remarkable company to an even brighter future' he said.
*All prior year comparatives are after restatement of the accounts to include the consolidation of the Employee Benefit Trust (EBT).