In This Article:
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Revenue: GBP53 million, up 28% year-over-year.
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Organic Revenue Growth: 14%.
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Gross Profit: Up 21%.
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Adjusted EBITDA: GBP15.1 million, up 23%.
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Adjusted EBITDA Margin: 29%, slightly below the previous 30%.
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Profit Before Tax: GBP12 million, up 22%.
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Adjusted Diluted EPS: 21.5p, up 16%.
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Net Cash: GBP22.1 million.
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Free Cash Flow: GBP7 million, more than doubled from the prior year.
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New Client Growth: GBP6.4 million, up from GBP4.3 million in the previous year.
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Cross-Sell Revenue: GBP8 million, an 82% increase over the previous half.
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Revenue CAGR Since 2019: 37%.
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Forecasted Revenue for FY24: GBP104 million to GBP110 million.
Release Date: October 09, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Elixirr International PLC (ELXXF) reported a 28% revenue growth in the first half of 2024, with 14% being organic growth.
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The company has maintained a strong EBITDA margin, averaging between 29% and 32% since its IPO.
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Elixirr's leadership team holds a significant portion of the company's equity, indicating strong internal commitment and alignment with shareholder interests.
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The company has successfully diversified its client base across multiple industries, reducing client concentration risk.
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Elixirr has been recognized by Forbes as one of the world's best management consultancies, highlighting its strong market reputation and diversified capabilities.
Negative Points
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The company's gross margin is lower compared to many other professional services businesses, which may indicate higher cost structures.
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Elixirr faces challenges in maintaining long-term revenue visibility due to the nature of its consulting contracts, which are typically shorter in duration.
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The company experiences a staff churn rate of approximately 17%, which could impact continuity and client relationships.
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Despite strong growth, the company acknowledges the need to continuously manage and identify cross-selling opportunities to maximize client value.
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Elixirr operates in a highly competitive market where top clients often use multiple consulting firms, necessitating constant differentiation and value demonstration.
Q & A Highlights
Q: How are end markets looking at the moment compared to the last couple of years, better or worse? A: Stephen Newton, CEO, explained that many clients are facing difficulties and are seeking Elixirr's help to navigate these challenges, whether through cost reduction or focusing on critical areas. He emphasized that high-quality consulting firms can sustain or grow their positions in such markets, as clients will always seek consultancy services regardless of market conditions.