The PraxisIFM Group has reported a 7% increase in revenue but a net loss of £2.7m at the end of its financial year.
In its annual results for the year ending 30 April 2020, the financial services group analysed some of the main challenges from a "difficult 12-month period" and outlined the actions taken to "refocus" the business.
The key points from the financial period are:
Continuing revenue growth of 7% (2019: 45%)
Delivered gross margin on continuing operations of 51% (2019: 54.1%)
Net loss (£2.7m) (2019: profit £9.7m)
Underlying EBITDA of £11.5m (2019: £11.8m)
50% of Group owned by staff
Disposed of InAdmin RiskCo Group (IARG)
Chairman Andrew Haining said that a combination of factors had contributed to a challenging year, including the impact of Covid-19 during the final quarter.
This has led to changes to the group’s acquisition strategy and organisational structure which Mr Haining said "needed to be made".
"This strategy has come at a cost, but we believe it is a cost that will produce a more efficient and robust business, one that is fully equipped to adapt and grow in the coming years," he said.
"This year, extraordinary challenging times have revealed the true calibre and quality of the people who make up the Group. At every level, across our globally expanding business, everyone has stepped up to rethink, reorganise, and create a more efficient, more flexible and ultimately more resilient operation."
Chief Executive Officer Rob Fearis said that the group "continues to generate good organic revenue". The new executive team, which he joined in February, will continue to work "at pace" to bring about "positive and consistent change" across the group.
"As our brand grows on the global stage, it is vital that we present a unified and consistent shop window to the market," he said. ‘This presentation has to be driven by us becoming a single global team, fully integrated at every level. The pursuit of this is well under way and will continue at pace."
The TISE-listed Group employees nearly 500 people across 17 locations, with 76% of management invested in the business and 50% of the group owned by staff.
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