Indeed, I'd also expect it to be the type of environment that would suit a small consultancy down to the ground. You have the AI transition + tariff navigation to drive growth.
Forward P/E now just over 12x, so just a touch above it's lowest ever valuation. That doesn't tally with it's TU, nor track record.
Tiny sellers keep setting the bid back & it's so illiquid that I suspect the market makers are just playing a holding game until the results in 2 weeks time. |
Since the last trading update circa 7 weeks ago (mid-Feb) the shareprice has NOW declined by 33% to 590p. It is worth recalling the most salient points of that TU.
FY 24 results are expected to be above market expectations with:
· Revenue greater than £111m, above the guidance range of £108 - £111m.
· Adjusted EBITDA margin of approx 28%, in the middle of the guidance range of 27-29%
· Adjusted EBITDA of approximately £31m
· Cash balances of approximately £7.5m, having fully repaid the debt drawn under the Company's £45m revolving credit facility to finance the acquisition of Hypothesis Group.
In every year since Elixirr's IPO, the sum of its revenue growth and Adjusted EBITDA margin have exceeded 40%. Momentum has continued into 2025 with record revenue for January. The Group will announce its full year FY 24 results on 28 April 2025.
Very tempting to add further at this level. |
The price slide today is just part of the general market negative sentiment following Trump's ridiculous tarrif nonsense. We don't know how long this will last but in the meantime it is worth pointing out that circa 40% of ELIX business is in the USA. However this is conducted by American partners who live there and is not impacted by any tarrifs. In fact this might boost their business going forward as some of their clients seek ways of minimizing the impact of the retaliatory tarrifs that will be applied to US products in due course by countries where they have export customers. |
Today's further fall reminds me of the spike down to 420p in November 2023, by Christmas 2023 they were back to 600p. That low had shares valued at ~11.5x 2024 forecast earnings, whereas at today's 630p ELIX is valued at ~13x 2025 forecast earnings, vs the ~18x it traded it in the 2 weeks after the latest trading update.
What makes me laugh about selloffs like this is the number of small retail holders who chase the bid down. If you didn't sell you 365 shares at 860p a month ago why would you sell them today at 620.3p?
Will be very surprised if shares aren't trading well above £7 on 28th April when they release results. |
Worth remebering that consultancies are struggling and presumably Elixrr is not immune:
hxxps://www.goingconcern.com/accenture-warns-investors-things-will-be-sucky-until-they-can-overcharge-the-government-for-slides-again/ |
Worth re-reading the 2024 TU on 18 Feb - since then ELIX has fallen 18% - figure that out! |
Nice timing Alphabets, this is a quality outfit, i had a little top up too as i had not noticed the silly fall |
Way too cheap - just bought a nice opening position, RSI at 18 month low just after an upgrade! |
 More grist to Elixirr's mill, being lean and keen without the legacy overheads afflicting the big 4.
EY to axe 30 partners in biggest executive cull for decades
The big four accounting and consultancy firm is to shed senior roles amid a slowdown in corporate demand for professional services after the pandemic
EY is preparing for one of its biggest partner redundancy rounds in decades as its new boss seeks to protect the firm’s profits in the face of a prolonged slowdown in professional services. The big four firm is expected to axe 30 partners, mainly in its consulting division, according to those familiar with the matter. Anna Anthony, the firm’s managing partner for the UK and Ireland, announced the cull to partners earlier this month but did not elaborate on numbers. EY employs 20,000 people across the UK and provides a range of professional services, including auditing the UK’s biggest companies, advising on corporate deals, restructuring struggling businesses and tax advice. One big four rival claimed they had been contacted by ten EY partners in recent weeks, seeking work.
Complete article: |
"Masurenguy 25 Feb '25 - 15:00 - 103 of 103
Buyers paying 877p today - a 400% increase over the IPO price of 217p just four and a half years ago "
Someone tell him not to become a maths teacher. Shocking |
Buyers paying 877p today - a 400% increase over the IPO price of 217p just four and a half years ago ! |
Does not feel like the highest paid either in part relying on equity price increases to keep workers happy? It should probably be valued on adjusted eps but with the cost of share based payments included |
It strikes me as an ultra-rewarding but tough (even aggressive?) place to work. ie Not everyone's cup of tea! |
Cavendish has issued a note this morning with a new target price of of 1085p, which they point out still represents a 20% discount to Elixirr's closest peer Accenture on a calendar 2024 EV/EBIT basis. |
Shot through previous resistance of 800p at the open with buyers paying up to 839p and a few sellers taking profits @815p. We now have a new intraday ATH ! |
I read the news and it prompted me to have a look at glassdoor |
Funny how you choose to post glassdoor reviews and negativity on the same day as good full year results.
Very curious. |
Class act.
Well done to everyone at Elixirr for all their hard work.
Elixirr is one of the gems on the AIM market. |
Poor glassdoor reviews
2.8*
39% would recommend to a friend
(147 total reviews) |
Great Year End Update !
Trading Update
The Group finished the financial year ended 31 December 2024 ("FY 24") strongly.
Subject to audit, FY 24 results are expected to be above market expectations with:
· Revenue greater than £111m, above the guidance range of £108 - £111m.
· Adjusted EBITDA margin of approximately 28%, in the middle of the guidance range of 27-29%
· Adjusted EBITDA of approximately £31m.
· Cash balances of approximately £7.5m, having fully repaid the debt drawn under the Company's £45m revolving credit facility to finance the acquisition of Hypothesis Group, LLC
The Board is pleased to note that the unaudited FY 24 results continue Elixirr's track record of achievement of the Rule of 40. In every year since Elixirr's IPO, the sum of its revenue growth and Adjusted EBITDA margin have exceeded 40%. Momentum has continued into 2025 with record revenue for January. The Group will announce its full year FY 24 results on 28 April 2025. |
There should be a year end trading update anyday now. Meanwhile, the shareprice has risen by 16% since the share placing at 650p by a number of partners 4 months ago. The declared interim dividend of 6.3p is due to be paid out on Monday. |
Should be a 2024 year end Trading Update this month. |
Thanks for the insightful posts today.
There are few poster on this thread but those that are appear well informed.
Happy Xmas to all shareholders and everyone at Elixirr.
Onwards and upwards in 2025! |
Interesting post Simon. IMO EY is a dinosauer, with nearly 400,000 employees and they need to split their consultancy services from their accounting and audit operations. They did plan to do this through Project Everest, which would have involved the consulting business completing an IPO with the proceeds being used to compensate partners at the new and separated auditing company. However, last year they abandoned the split when a majority of existing partners voted against it.
ELIX on the other hand is a lean, fast growing company, with 450 employees and includes partners and senior managers who've defected from the big consultancies like Deloitte, PWC, Accenture, EY and KPMG. Elix creates an equity participation opportunity for all team members, which attracts talent from these organizations who are willing to take a financial risk to see significant returns from their organisation by generating value for their clients and consequently for the company. |
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