PraxisIFM Group has announced strong interim results for the six months ending 31 October 2021 with reported revenues of £29.5million.
That is in line with the prior period and adjusted EBITDA of £5.1m. and compares with £5.9m. a year earlier.
The global financial services business said its gross profit margin for the period increased to 56.1%, compared to 54.4% in H1 2021. In the same period, the Group reduced Net Debt to £6.2m from £10.9m in H1 2021, representing what it has called a further strengthening of the business.
The Group's Board said it is refocusing the business as the firm enters its 50th anniversary year and will be investing in technology and people, which will support 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 reduce the Group’s borrowing further as well as reinvesting in the business. It expects to resume payment of a regular dividend and anticipates declaring the first dividend in the interim results for the six months to 30 June 2022.
Robert Fearis, PraxisIFM Chief Executive, pictured top, said: “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 PraxisIFM for continuing to deliver excellent service to clients new and established.
"This commitment to client services has allowed us broadly to 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, PraxisIFM 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 has also announced that Richard Morris, the Group Chief Financial Officer (CFO), joined the Group Board as an Executive Director on 1 February. He has been with the business since 2016 and has been the CFO since 2020.
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