PraxisIFM well set for growth
H1 2021 Highlights
- Revenue for the period was 29.8m (2020: 30.5m).
- Gross profit margin increased by 1% to 54.4% (2020: 53.4%)
- EBITDA has increased to 5.0m (2020: 4.2m)
- The Private Client & Corporate Services Funds and Pensions Divisions have all delivered gross profit (12.2m 2.8m & 1.1m respectively).
Praxis Group interim results for the six-month period ending 31 October 2020 show that the global professional administration services business has benefitted from improved performance in key financial metrics and is poised for an increase in financial markets activity.
In the first half of its financial year the Group has focused on more robustly integrating recent acquisitions; accelerated development of its technology platform and streamlining operations for more seamless group-wide collaboration and greater efficiency. As a result the profit margin is up and the leadership team continues to put the Group's annual results of the previous difficult financial year firmly behind it and focus on future performance.
Chief Executive Officer Rob Fearis commented 'While we along with the rest of the world have faced turbulent times this year the dedication determination and adaptability of our workforce has been a critical ingredient in our success.'
While the global COVID-19 pandemic has resulted in a slowing in business conversion Praxis' interim report shows that its new business prospects remain strong and the company is well positioned to take on this work when the client transactions and fund launches currently paused are resumed.
Praxis has also strengthened its management team welcoming two new managing directors. Joanna Caen and Daniel Reynolds are leading the acquisition and integration process in their respective jurisdictions Hong Kong and the Netherlands. These appointments reflect the Group's continued growth and commitment to investing in the development of the business.
'These interim results have shown promising progress as a Group and demonstrate the product of our collective attitude to grasp the opportunity of the year's challenges and build ourselves up to be stronger and more competitive than ever' said Mr Fearis. 'I am incredibly proud of Praxis' formidable resilience and enterprise throughout this period which leaves me in eager anticipation of what we can achieve when COVID-19 restrictions subside and the surge of activity commences.'
The Group recognises the importance of dividend payments to shareholders and intends to return to its stated dividend policy as soon as possible.
The search and selection process for a new non-executive chairman and non-executive director following the departure of Andrew Haining and Audit Committee Chair Iain Stokes in December is progressing well assisted by an independent search agency. We hope to make announcements concerning these appointments in the coming weeks.
Download and view the full 2021 Unaudited Interim Report.