Praxis continues growth pattern, reporting healthy interim results
Praxis has reported positive interim results for the six months ending 30 June 2022.
Celebrating its 50th anniversary, Praxis reported revenue of £23.6m and adjusted EBITDA of £2.8m. The gross profit margin increased by 3% in the period as a result of efficiencies initiated in 2021, alongside a focus on the Group’s operating expenses. In the six-month period, the Group converted its previous Net Debt position to Net Cash of £2.6m, continuing its improving path.
Following the Fund Services division sale last year, the Group returned £40m to shareholders and reduced its term debt, further strengthening its balance sheet. The Group is also pleased to report that it has declared an interim dividend for the current financial year of 1.25p payable to shareholders. Additionally, as the business continues its growth path, it is expected the dividend will grow progressively, linked to the growth in profits.
The improved interim results come at a good time, at the start of the Group’s new strategic journey. Launched in March this year, the strategy is centred around its focus on private wealth and corporate services, delivery of outstanding client experience, accelerating business growth and transforming the operating model of the business. The business is on track with its plan, with positive signs of resilience and revenue growth now emerging.
Looking forward, the recent appointment of a London-based Commercial Director to help accelerate revenue growth is an important development. The appointment is equally a commitment to driving enhanced levels of client service and efficiency through process and system enhancements that will improve the overall performance of the business.
Amidst the 50th anniversary celebration and the interim results, the refreshed branding announcement underlines the Group’s growth ambitions and resetting the image of the business at this important time. It is a key part of aligning the Group, its people, and stakeholders to help drive further growth. The refreshed branding respects the Group’s heritage and aims to ensure its identity matches its future aspirations, new ventures, and its evolution while remaining true to its values.
Robert Fearis, CEO at Praxis, commented: 'I am pleased with where we stand at the end of these six months. We continue progressing on our strategic journey focused fully on enhancing our client experience, transforming our operating model, and prioritising the workstreams that will help us deliver benefits to our shareholders, our team and our other stakeholders. The continued support from our shareholders and the commitment of our people are core pillars of our business delivery plan. We believe we have a strong and incentivised team whose interests are aligned with those of our stakeholders.
'Our refreshed brand is a clear public declaration that the business is evolving to reflect our approach to our relationships with clients and improve shareholder value. As Praxis, we remain committed to delivering Open Ideas to our clients and their advisers so they can best compete in the current dynamic business landscape. These improving results and new corporate identity came in the week when we gathered with staff, clients, and advisers at an event in London to celebrate our 50th anniversary. There was no better venue to toast our continued evolution than the iconic Gherkin, and we enjoyed having the opportunity to welcome and meet with our guests once again.'
The full unaudited interim results for the six months to 30 June 2022 can be downloaded and viewed here.