Praxis reports solid interim results as business refocuses
Demand for services remained strong amid market headwinds as results point to improved margins across the business.
Interim Report for the six-month period to 31 October 2021 highlights:
- Revenue for the period £29.5m (2021 H1: 29.8m)
- Net Debt reduced to £6.2m (2021 H1: 10.9m)
- Gross profit margin increased 170 bps to 56.1% (2021 H1: 54.4%)
- Operating cash flow increased to £1.6m (2021 H1: 1.1m)
Praxis Group has reported strong interim results for the six months ending 31 October 2021.
In the period Praxis reported revenue of £29.5m in line with the prior period and adjusted EBITDA of £5.1m compared with £5.9m a year earlier. The gross profit margin increased to 56.1% compared to 54.4% in H1 2021. In the period the Group reduced Net Debt to £6.2m from £10.9m in H1 2021 representing a further strengthening of the business.
As the Group looks to 2022, Praxis' 50th anniversary year, the Board continues to refocus the business towards delivering strong outcomes in private wealth and corporate services. To reinforce the Group's reputation for excellence Praxis will invest in technology and people - supporting the Group's targets for organic revenue growth of 5% per annum and reaching a gross profit margin of 65%.
Following the completion of the Fund Services division sale to Sanne Holdings Limited for £54m the Group announced that £40m of the proceeds would be returned to shareholders. This return of capital will be subject to approval by shareholders at an extraordinary general meeting the details of which will be communicated shortly. The Board intends to use the remaining proceeds to further reduce the Group's borrowing as well as reinvesting in the business. It expects to resume payment of a regular dividend and it is expected the first dividend will be declared in the interim results for the six months to 30 June 2022.
Rob Fearis Praxis Chief Executive Officer commented: 'The last six months was a period still dominated by the COVID-19 pandemic and associated economic and supply chain disruption so I am proud of staff across Praxis for continuing to deliver excellent service to clients new and established. This commitment to client services has allowed us to broadly maintain our revenue and grow our gross profit margin despite macro-economic pressures.
'As we reduce Net Debt and invest in our people and technology Praxis is well-positioned to drive towards our revenue and gross margin growth targets by delivering flagship private wealth and corporate services with renewed focus.'
The Board is pleased to announce that Richard Morris the Group Chief Financial Officer (CFO) will join the Group Board as an executive director on 1 February 2022. Richard has been with the business since 2016 and has been the CFO since 2020.
Download and view the 31 October 2021 full unaudited interim results.