![]() | Q2 FY2020 |
• | Revenue for Q2 FY2020 was £85.9 million, an increase of 19.6% compared to £71.8 million in the same period in the prior year. |
• | Revenue growth rate at constant currency (a non-IFRS measure) was 20.5% for Q2 FY2020 compared to 42.4% in the same period in the prior year. |
• | Loss before tax for Q2 FY2020 was £(17.3) million compared to profit before tax of £9.4 million in the same period in the prior year. The loss during the quarter is the result of the declaration of a non-recurring, discretionary employee bonus of £27.7 million in December 2019. The Endava Limited Guernsey Employee Benefit Trust ("EBT") funded the first tranche of the bonus through sales of Endava's Class A ordinary shares in November 2019. The funding of the second tranche by the EBT is expected to occur during the second half of FY2020. As previously disclosed, the EBT, whose beneficiaries are our employees, was holding certain Class A ordinary shares for sale in the event it decided to fund a discretionary cash bonus to our employees. |
![]() | Q2 FY2020 |
• | Adjusted profit before tax (a non-IFRS measure) for Q2 FY2020 was £20.5 million compared to £13.6 million in the same period in the prior year, or 23.8% of revenue compared to 18.9% in the same period in the prior year. |
• | Loss for the period was £(13.8) million in Q2 FY2020, resulting in a diluted EPS of £(0.25), compared to profit for the period of £7.4 million and diluted EPS of £0.14 in the same period in the prior year. |
• | Adjusted profit for the period (a non-IFRS measure) was £16.8 million in Q2 FY2020, resulting in adjusted diluted EPS (a non-IFRS measure) of £0.30 compared to adjusted profit for the period of £10.9 million and adjusted diluted EPS of £0.20 in the same period in the prior year. |
• | Net cash from operating activities was £11.1 million in Q2 FY2020 compared to £9.6 million in the same period in the prior year. |
• | Adjusted free cash flow (a non-IFRS measure) was £8.0 million in Q2 FY2020 compared to £9.2 million in the same period in the prior year. |
• | At December 31, 2019, Endava had cash and cash equivalents of £79.0 million, compared to £70.2 million at June 30, 2019. |
• | Headcount reached 6,267 at December 31, 2019, with 5,472 average operational employees in Q2 FY2020, compared to a headcount of 5,389 at December 31, 2018 and 4,845 average operational employees in the same quarter of the prior year. |
• | Number of clients with over £1 million in revenue was 65 on a rolling twelve months basis at December 31, 2019 compared to 60 at December 31, 2018. |
• | Top 10 clients accounted for 37% of revenue in Q2 FY2020, compared to 38% in the same period in the prior year. |
• | By geographic region, 29% of revenue was generated in North America, 23% was generated in Europe, 45% was generated in the United Kingdom and 3% was generated in the Rest of the World in Q2 FY2020. This compares to 27% in North America, 28% in Europe and 45% in the United Kingdom in the same period in the prior year. |
• | By industry vertical, 53% of revenue was generated from Payments and Financial Services, 24% from TMT and 23% from Other. This compares to 53% Payments and Financial Services, 27% TMT and 20% Other in the same period in the prior year. |
![]() | Q2 FY2020 |
![]() | Q2 FY2020 |
![]() | Q2 FY2020 |
![]() | Q2 FY2020 |
![]() | Q2 FY2020 |
![]() | Q2 FY2020 |
Six Months Ended December 31 | Three Months Ended December 31 | |||||||
2019 | 2018 | 2019 | 2018 | |||||
£’000 | £’000 | £’000 | £’000 | |||||
REVENUE | 168,252 | 138,248 | 85,900 | 71,834 | ||||
Cost of sales | ||||||||
Direct cost of sales | (122,592) | (83,026) | (73,828) | (42,668) | ||||
Allocated cost of sales | (8,311 | ) | (7,305 | ) | (4,391 | ) | (3,737 | ) |
Total cost of sales | (130,903 | ) | (90,331 | ) | (78,219 | ) | (46,405 | ) |
GROSS PROFIT | 37,349 | 47,917 | 7,681 | 25,429 | ||||
Selling, general and administrative expenses | (36,480 | ) | (31,008 | ) | (19,139 | ) | (16,345 | ) |
OPERATING PROFIT/ (LOSS) | 869 | 16,909 | (11,458 | ) | 9,084 | |||
Net finance (expense) / income | (2,871 | ) | (4,860 | ) | (5,799 | ) | 331 | |
Gain on sale of subsidiary | 2,215 | — | — | — | ||||
PROFIT/(LOSS) BEFORE TAX | 213 | 12,049 | (17,257 | ) | 9,415 | |||
Tax on profit/(loss) on ordinary activities | 483 | (2,584) | 3,441 | (1,998) | ||||
PROFIT/ (LOSS) FOR THE PERIOD | 696 | 9,465 | (13,816 | ) | 7,417 | |||
OTHER COMPREHENSIVE INCOME | ||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||
Exchange differences on translating foreign operations | (4,385) | 662 | (2,460) | 930 | ||||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF THE PARENT | (3,689 | ) | 10,127 | (16,276 | ) | 8,347 | ||
EARNINGS PER SHARE (EPS): | ||||||||
Weighted average number of shares outstanding - Basic | 52,848,507 | 48,859,382 | 53,140,682 | 49,454,195 | ||||
Weighted average number of shares outstanding - Diluted | 55,663,120 | 54,454,333 | 55,957,472 | 54,892,513 | ||||
Basic EPS (£) | 0.01 | 0.19 | (0.26 | ) | 0.15 | |||
Diluted EPS (£) | 0.01 | 0.17 | (0.25 | ) | 0.14 |
![]() | Q2 FY2020 |
December 31, 2019 | June 30, 2019 | December 31, 2018 | ||||
£’000 | £’000 | £’000 | ||||
ASSETS - NON-CURRENT | ||||||
Goodwill | 59,467 | 36,760 | 42,447 | |||
Intangible assets | 31,478 | 28,910 | 30,303 | |||
Property, plant and equipment | 11,776 | 10,579 | 9,989 | |||
Lease right-of-use assets | 49,109 | — | — | |||
Financial assets | 881 | — | — | |||
Deferred tax assets | 11,447 | 9,550 | 2,519 | |||
TOTAL | 164,158 | 85,799 | 85,258 | |||
ASSETS - CURRENT | ||||||
Trade and other receivables | 74,251 | 65,917 | 63,766 | |||
Corporation tax receivable | 4,171 | 790 | 546 | |||
Financial assets | 592 | — | — | |||
Cash and cash equivalents | 78,975 | 70,172 | 51,044 | |||
TOTAL | 157,989 | 136,879 | 115,356 | |||
TOTAL ASSETS | 322,147 | 222,678 | 200,614 | |||
LIABILITIES - CURRENT | ||||||
Borrowings | 954 | 21 | 39 | |||
Lease liabilities | 10,489 | — | — | |||
Trade and other payables | 72,511 | 48,502 | 41,892 | |||
Corporation tax payable | 983 | 2,920 | 1,270 | |||
Contingent consideration | 1,131 | 1,244 | 1,244 | |||
Deferred consideration | 1,707 | 1,516 | 4,691 | |||
TOTAL | 87,775 | 54,203 | 49,136 | |||
LIABILITIES - NON CURRENT | ||||||
Lease liabilities | 39,545 | — | — | |||
Borrowings | — | — | 3 | |||
Deferred consideration | 1,901 | — | — | |||
Deferred tax liabilities | 2,837 | 2,033 | 2,601 | |||
Other liabilities | 108 | 113 | 284 | |||
TOTAL | 44,391 | 2,146 | 2,888 | |||
EQUITY | ||||||
Share capital | 1,095 | 1,089 | 1,061 | |||
Share premium | 20,278 | 17,271 | 48,614 | |||
Merger relief reserve | 4,430 | 4,430 | 4,430 | |||
Retained earnings | 156,313 | 146,963 | 73,956 | |||
Other reserves | 9,548 | (1,577 | ) | 22,804 | ||
Investment in own shares | (1,683 | ) | (1,847 | ) | (2,275 | ) |
TOTAL | 189,981 | 166,329 | 148,590 | |||
TOTAL LIABILITIES AND EQUITY | 322,147 | 222,678 | 200,614 |
![]() | Q2 FY2020 |
Six Months Ended December 31 | Three Months Ended December 31 | |||||||
2019 | 2018 | 2019 | 2018 | |||||
£’000 | £’000 | £’000 | £’000 | |||||
OPERATING ACTIVITIES | ||||||||
Profit/ (Loss) for the period | 696 | 9,465 | (13,816 | ) | 7,417 | |||
Income tax charge/(credit) | (483 | ) | 2,584 | (3,441 | ) | 1,998 | ||
Non-cash adjustments | 15,886 | 13,305 | 13,930 | 4,808 | ||||
Tax paid | (3,535 | ) | (2,911 | ) | (2,703 | ) | (1,419 | ) |
Net changes in working capital | 13,936 | (10,778 | ) | 17,121 | (3,190 | ) | ||
Net cash from operating activities | 26,500 | 11,665 | 11,091 | 9,614 | ||||
INVESTING ACTIVITIES | ||||||||
Purchase of non-current assets (tangible and intangible) | (5,830 | ) | (3,964 | ) | (3,324 | ) | (2,070 | ) |
Proceeds from disposal of non-current assets | 120 | 25 | 107 | 25 | ||||
Acquisition of business / subsidiaries (net of cash acquired) | (27,061 | ) | — | (25,538 | ) | — | ||
Proceeds from sale of subsidiary net of cash disposed of | 2,744 | — | 166 | — | ||||
Cash and cash equivalents acquired with subsidiaries | 3,289 | — | 3,289 | — | ||||
Interest received | 353 | 126 | 154 | 52 | ||||
Net cash used in investing activities | (26,385 | ) | (3,813 | ) | (25,146 | ) | (1,993 | ) |
FINANCING ACTIVITIES | ||||||||
Proceeds from sublease | 302 | 3,500 | 148 | 3,500 | ||||
Repayment of borrowings | (9 | ) | (23,526 | ) | — | (3,511 | ) | |
Repayment of lease liabilities | (4,569 | ) | — | (2,413 | ) | — | ||
Interest paid | (375 | ) | (222 | ) | (209 | ) | (74 | ) |
Grant received | 661 | 1,784 | 97 | 1,679 | ||||
Net proceeds from initial public offering | — | 44,828 | — | — | ||||
Proceeds from sale of EBT shares | 14,797 | — | 14,797 | — | ||||
Issue of shares | 9 | — | — | — | ||||
Net cash from financing activities | 10,816 | 26,364 | 12,420 | 1,594 | ||||
Net change in cash and cash equivalents | 10,931 | 34,216 | (1,635 | ) | 9,215 | |||
Cash and cash equivalents at the beginning of the period | 70,172 | 15,048 | 83,628 | 41,765 | ||||
Exchange differences on cash and cash equivalents | (2,128 | ) | 1,780 | (3,018 | ) | 64 | ||
Cash and cash equivalents at the end of the period | 78,975 | 51,044 | 78,975 | 51,044 |
![]() | Q2 FY2020 |
Six Months ended December 31 | Three Months ended December 31 | |||||||
2019 | 2018 | 2019 | 2018 | |||||
REVENUE GROWTH RATE AS REPORTED UNDER IFRS | 21.7 | % | 41.7 | % | 19.6 | % | 43.6 | % |
Foreign exchange rates impact | (0.7 | %) | (0.6 | %) | 0.9 | % | (1.2 | %) |
REVENUE GROWTH RATE AT CONSTANT CURRENCY INCLUDING WORLDPAY CAPTIVE | 21.0 | % | 41.1 | % | 20.5 | % | 42.4 | % |
Impact of Worldpay Captive | 2.3 | % | — | 4.0 | % | — | ||
PROFORMA REVENUE GROWTH RATE AT CONSTANT CURRENCY EXCLUDING WORLDAY CAPTIVE | 23.3 | % | 41.1 | % | 24.5 | % | 42.4 | % |
Six Months Ended December 31 | Three Months Ended December 31 | |||||||
2019 | 2018 | 2019 | 2018 | |||||
£’000 | £’000 | £’000 | £’000 | |||||
PROFIT/(LOSS) BEFORE TAX | 213 | 12,049 | (17,257 | ) | 9,415 | |||
Adjustments: | ||||||||
Share-based compensation expense | 6,996 | 5,010 | 3,673 | 3,125 | ||||
Discretionary EBT bonus expense | 27,657 | — | 27,657 | — | ||||
Amortisation of acquired intangible assets | 1,809 | 1,752 | 913 | 873 | ||||
Foreign currency exchange (gains)/losses, net | 2,913 | (1,141 | ) | 5,466 | (436 | ) | ||
Initial public offering expenses incurred | — | 1,055 | — | 79 | ||||
Sarbanes-Oxley compliance readiness expenses incurred | — | 698 | — | 504 | ||||
Net gain on disposal of subsidiary | (2,215 | ) | — | — | — | |||
Fair value movement of contingent consideration | — | 5,805 | — | — | ||||
Total adjustments | 37,160 | 13,179 | 37,709 | 4,145 | ||||
ADJUSTED PROFIT BEFORE TAX | 37,373 | 25,228 | 20,452 | 13,560 | ||||
PROFIT/ (LOSS) FOR THE PERIOD | 696 | 9,465 | (13,816 | ) | 7,417 | |||
Adjustments: | ||||||||
Adjustments to profit before tax | 37,160 | 13,179 | 37,709 | 4,145 | ||||
Tax impact of adjustments | (7,508 | ) | (2,349 | ) | (7,115 | ) | (666 | ) |
ADJUSTED PROFIT FOR THE PERIOD | 30,348 | 20,295 | 16,778 | 10,896 | ||||
Diluted EPS (£) | 0.01 | 0.17 | (0.25 | ) | 0.14 | |||
Adjusted diluted EPS (£) | 0.55 | 0.37 | 0.30 | 0.20 |
![]() | Q2 FY2020 |
Six Months Ended December 31 | Three Months Ended December 31 | |||||||
2019 | 2018 | 2019 | 2018 | |||||
£’000 | £’000 | £’000 | £’000 | |||||
Net cash from operating activities | 26,500 | 11,665 | 11,091 | 9,614 | ||||
Adjustments: | ||||||||
Grant received | 661 | 1,784 | 97 | 1,679 | ||||
Net purchases of non-current assets (tangible and intangible) | (5,710 | ) | (3,939 | ) | (3,217 | ) | (2,045 | ) |
Adjusted Free cash flow | 21,451 | 9,510 | 7,971 | 9,248 |
![]() | Q2 FY2020 |
Six Months Ended December 31 | Three Months Ended December 31 | |||||||
2019 | 2018 | 2019 | 2018 | |||||
£’000 | £’000 | £’000 | £’000 | |||||
Direct cost of sales | 3,830 | 1,939 | 2,133 | 1,191 | ||||
Selling, general and administrative expenses | 3,166 | 3,071 | 1,540 | 1,934 | ||||
Total | 6,996 | 5,010 | 3,673 | 3,125 |
Six Months Ended December 31 | Three Months Ended December 31 | |||||||
2019 | 2018 | 2019 | 2018 | |||||
£’000 | £’000 | £’000 | £’000 | |||||
Direct cost of sales | 5,910 | 1,859 | 3,159 | 959 | ||||
Selling, general and administrative expenses | 2,833 | 2,058 | 1,457 | 1,029 | ||||
Total | 8,743 | 3,917 | 4,616 | 1,988 |
Six Months Ended December 31 | Three Months Ended December 31 | |||||
2019 | 2018 | 2019 | 2018 | |||
£’000 | £’000 | £’000 | £’000 | |||
Direct cost of sales | 25,182 | - | 25,182 | - | ||
Selling, general and administrative expenses | 2,475 | - | 2,475 | - | ||
Total | 27,657 | - | 27,657 | - |
![]() | Q2 FY2020 |
Six Months Ended December 31 | Six Months Ended December 31 | Three Months Ended December 31 | ||||||
2019 | 2018 | 2019 | 2018 | |||||
Closing number of total employees | 6,267 | 5,389 | 6,267 | 5,389 | ||||
Average operational employees | 5,405 | 4,726 | 5,472 | 4,845 | ||||
Top 10 customers % | 39 | % | 38 | % | 37 | % | 38 | % |
Number of clients with > £1m of revenue (rolling 12 months) | 65 | 60 | 65 | 60 | ||||
Geographic split of revenue % | ||||||||
North America | 28 | % | 27 | % | 29 | % | 27 | % |
Europe | 24 | % | 28 | % | 23 | % | 28 | % |
UK | 46 | % | 45 | % | 45 | % | 45 | % |
Rest of World (RoW) | 2 | % | - | 3 | % | - | ||
Industry vertical split of revenue % | ||||||||
Payments and Financial Services | 53 | % | 53 | % | 53 | % | 53 | % |
TMT | 25 | % | 27 | % | 24 | % | 27 | % |
Other | 22 | % | 20 | % | 23 | % | 20 | % |