Elixirr Share Discussion Threads

[bhoddhisattva] 22/4/2024 09:16

Surely due a rerating on this good and continuing growth - I hold.

[mammyoko] 22/4/2024 07:57

Nic beat against consensus eps forecast 37.2p vs 32p

[masurenguy] 22/4/2024 07:20

Completely inline with the January y/e trading update !

Final Results for the Year Ended 31 December 2023

Elixirr International is pleased to announce its final results for the year ended 31 December 2023.

Financial Highlights

. Revenue increased by 20% to £85.9m (FY 22: £71.7m)
. Adjusted EBITDA* increased by 24% to £25.4m (FY 22: £20.5m)
. Adjusted EBITDA* margin of 30% (FY 22: 29%)
. Profit before tax increased by 40% to £22.1m (FY 22: £15.7​m)
. Adjusted diluted earnings per share* increased by 22% to 37.2p (FY 22: 30.5p)
. Year-end net cash of £18.1m (FY 22: £20.4m)
. Total dividend increased by 37% to 14.8p per Ordinary share (FY 22: 10.8p)

Current Trading & Outlook

· FY 23 momentum has continued into FY 24, with three record revenue months in Q1 2024 and a strong pipeline for the remainder of FY 24
· Momentum is expected to continue throughout the remainder of the year, with FY 24 revenue expected to be in the range of £104-110 million
· Adjusted EBITDA margin expected to be in the range of 27-29% after factoring in the impact of Insigniam's lower margins at acquisition

Operating Highlights

· Continued progress executing our four-pillar growth strategy, including:

1. Stretching Existing Partners - revenue per Partner increased by 7% during the year to £3.9m per Partner (FY 22: £3.6m). This continues the growth in this metric in each year since listing.

2. Hiring new Partners - we made three successful Partner hires in FY 23. These individuals have expanded the Group's presence in key markets and geographies and ensure that diversity of thought is maintained throughout the Partner grade.

3. Promoting Partners from Within - two experienced Principals were promoted to Partner in January 2023, with a further two Principals promoted to Partner in October 2023. January 2024 saw our first promotion to Partner in one of our acquired businesses, reflecting its successful integration within the Elixirr Group.

4. Inorganic Growth - the acquisition of the Artificial Intelligence firm, Responsum, in September 2023 has positioned the Group at the forefront of cutting-edge technology, whilst the acquisition of organisational change and transformation firm, Insigniam, in December 2023 enables us to support clients, innovate and drive large-scale change. Inorganic growth remains a key component of our strategy, and our internal M&A team continues to generate a pipeline of strong prospects that will help us further support clients with key boardroom issues and maximise the growth opportunity for the Group.

· Multiple accolades received including being named in the Financial Times' 2023 'UK Leading Management Consultants' list, earning a place on the Global Outsourcing 100® by the International Association of Outsourcing Professionals, being recognised as a Top Consulting Firm by Consultancy.UK and being shortlisted for the In-house Recruitment Awards 2023.

Commenting on the results, Founder & CEO, Stephen Newton said:"2023 highlighted Elixirr's ability to thrive, outperforming both competitors and the global Consulting market. Our continued growth is a testament to the quality of our team, and the value we deliver to our clients. This year we continued to invest in our four-pillar growth strategy, further diversifying our offering and enabling us to solve new and interesting challenges for our clients. Our equity incentive model continues to disrupt the market, solidifying our reputation as the Challenger Consultancy and setting us up for continued success."

[masurenguy] 19/4/2024 09:43

Results due on Monday. A reminder of the figures quoted in their y/e trading update on 8th January.
Subject to audit, FY23 results are expected to be in line with market expectations with revenue within the guidance range of £85m - £90m, adjusted EBITDA of approx £25.4m and year-end cash of approximately £17.9m.

[masurenguy] 08/4/2024 07:08

Elixirr International plc (AIM:ELIX) is pleased to announce that it will publish its full year results for the year ended 31 December 2023 on 22 April 2024.

[bhoddhisattva] 06/4/2024 18:05

Fingers crossed for clear growth!

[masurenguy] 04/4/2024 08:47

Results for the year ending 31 December 2023 should be published over the next few trading days. As a reminder, in the January trading update they stated that sales should be in the range of £85/£90m, with an EBITDA of around £25m and net cash on the balance sheet of circa £18m.

[masurenguy] 31/3/2024 00:39

Sector downturn could have some negative impact on sentiment amongst investors although in the January trading update Elixirr stated that their FY23 results are expected to be in line with market expectations with revenue achieving the guidance range of £85m - GBP90m, adjusted EBITDA of approximately £25.4m and year-end cash of approximately £17.9m.

Why McKinsey is paying staff to leave

McKinsey is offering to pay hundreds of its senior employees to leave the firm and look for work elsewhere, the latest attempt by the consulting giant to reduce staff amid a sector-wide downturn. If the employees have not found a new employer by the end of the nine months they have to leave the firm. Consulting firms enjoyed a boom during the pandemic, when companies sought their help on how to digitise their operations. However, companies that are facing tough economic circumstances have since cut back their spend on expensive corporate advice. The firm also said that it booked a record $16 billion in revenues last year.

[eagle eye] 04/3/2024 07:15

Masurenguy,
Thanks for the post. It's so well written you'd think it was AI.

[masurenguy] 07/2/2024 00:53

Ken Wotton of Gresham House on Elixirr yesterday.

[mginvestor] 23/1/2024 14:13

This is actually good for Elixirr and the pool of companies they engage with for M&A - more talent is leaving the larger consultancies and they are cutting significantly now.

Meanwhile Elixirr and the companies they have acquired are very actively recruiting - more than 30 job openings so far this year. They have positioned themselves in a niche that they know companies will require their expertise in. It is a win:win situation. Look at their larger acquisitions, starting with iOlap and then Insigniam, they are both in hot sectors right now.

[masurenguy] 23/1/2024 13:34

Looks like there are some specific sector issues that will have an impact 2024. Lets hope that Elixirr can manage to successfully navigate them without any meaningful setbacks.

McKinsey boss faces re-election revolt after job cuts

McKinsey’s boss is facing a revolt as he seeks re-election by the consultancy’s partners after pressing ahead with some of the largest job cuts in McKinsey’s history. McKinsey announced plans to cut up to 2,000 jobs last year, and the firm said in November that it would reduce the number of employees receiving promotions to become partners. McKinsey has about 46,000 employees around the world and 3,000 partners. The firm has seen a slowdown in contracts as consultancy firms struggle to win contracts from clients. Bankers, brokers and consultants have been knocked by a slowdown in deal activity in recent years amid economic uncertainty.

Staff at the consultancy have been drawing up plans for navigating a downturn in the sector as the firm pushed ahead with the restructuring. Consultants benefited from the pandemic as clients sought advice on how to navigate national lockdowns, and invested in IT systems and supply chain management. The sector also saw an increase in fees when corporate activity jumped as the pandemic restrictions tailed off in 2021. The industry saw revenues grow by 15% as clients sought advice on merger targets and how best to reorganise their businesses. However, companies have since been cutting non-essential spending as they struggle with cost rises in other parts of their businesses, and consultants face tougher competition to secure contracts. Clients that once had three firms bidding for a tender are now approached by ten possible suppliers.

McKinsey and Boston Consulting Group have reportedly offered their services free of charge to win contracts and maintain relationships with important clients, while other firms are offering two weeks of free work before starting to charge. EY has announced it will cut 300 jobs in the UK and will make 3,000 redundancies in the US. KPMG has put in place a pay freeze for about 12,000 workers across its services, including consultancy.

[masurenguy] 08/1/2024 12:48

Their broker Cavandish Capital Markets made the following comment after todays trading update.
"With closest peer Accenture on an FY 2023E EV/EBIT of 22x for average forecast EBIT growth of +7% p.a. and Elixirr valued at 11.6x (falling to 9.7x in 2024 including the full benefit of acquisitions made towards the end of 2023) for average forecast EBIT growth of +18% p.a. we reiterate our view that there is significant upside to the shares and our target price of 998p."

[rimau1] 08/1/2024 12:14

Up with events in my view after the recent rise

[masurenguy] 08/1/2024 07:16

Trading Update, Change to Dividend Policy and Interim Dividend

Elixirr International plc is pleased to provide an update on trading in the year ended 31 December 2023 ("FY23"), advise shareholders of a change in dividend policy and announce an interim dividend.

Trading

Subject to audit, FY23 results are expected to be in line with market expectations with:
- Revenue within the guidance range of £85m - £90m
- Adjusted EBITDA of approximately £25.4m
- Year-end cash of approximately £17.9m

Dividend Policy

In line with comparable companies, the Board has decided to declare two dividends per year, with an interim dividend payable shortly after the end of the year and a final dividend payable in August.

Interim Dividend

The Company is declaring an interim dividend (the "Dividend") of 5.3p per Ordinary Share. The Dividend will be payable to Shareholders on the register at 19 January 2024 and has an ex-dividend date of 18 January 2024. The Dividend of approximately £2.5m in total will be paid to Shareholders on 15 February 2024 and funded from the Company's existing cash reserves.

[masurenguy] 02/1/2024 09:13

Rising again this morning on miniscule trading volumes !

[eagle eye] 01/1/2024 12:47

Happy New Year to all shareholders.
ELIX sat around all year then gets the turbo chargers on in December.
Lots to like here, though would prefer an orderly climb rather than a price spike.
Upwards and onwards for 2024!

[mirabeau] 30/12/2023 12:25

This year I am recommending a riskier small company with experienced top management, excellent growth prospects and a number of blue-chip clients. The company is Elixirr International (Aim: ELIX), a consultancy with a market value of £220m and a 2022 turnover of £70.7m, up by 40% on 2021.

Elixirr was founded in 2009 by the current CEO, Stephen Newton, who had been a managing partner at Accenture. Newton says Elixxir’s ambition is to become the best digital, data, artificial intelligence (AI) and strategy consultancy in the world, with a globally recognised client base. It already numbers Diageo, HSBC, LVMH and Tesla among its clients.

Elixirr features in several categories of the Financial Times’ 2023 list of the leading UK management consultancies. Its emphasis on digital, data and AI should shield it from the recent turndown in general consultancy. Elixirr grows organically and through bolt-on acquisitions such as US generative AI firm Responsum, which has enhanced the group’s AI capabilities.

Revenue rose by 23% to £41.1m in the six months to 30 June, with pre-tax profits up 17% to £9.9m and net cash at £19.5m. Newton, who holds 28.7% of the shares (aligning his interests with other shareholders’), expects this strong performance to continue for the rest of the year, with full-year sales of £85m-£90m.

The trailing 12-month p/e is 17.5 and the forward dividend yield is 2.23% at the recent share price of 472p – well below analysts’ one-year price target of 868p.

[mginvestor] 29/12/2023 11:29

Funny world this investing is, no one wanted to buy ELIX when the PE was below 15 for quite some time. Now investors are paying more than the offer to get some. Someone just bought 2343 shares at 640p whilst the offer is still 625p. Strong level 2 despite several days of gains.

Expecting 2024 to take out our previous highs comfortably. If a company can deliver strongly since IPO despite the general market being gloomy it's all a matter of time before they get noticed.

[harry davis] 29/12/2023 11:26

Great move in the stock price. Happy to see this finding its feet again

[rimau1] 29/12/2023 07:31

Price direction and strong net cash position snippet in the recent acquisition rns suggests an H2 earnings beat IMO!

[masurenguy] 28/12/2023 16:23

rimau1 - it's already very close to your 600p target. Will it close there in 2023? 🙂

[rimau1] 23/12/2023 14:08

Nice re-rate, feels like the bottoms are in for advertising/consulting cyclicals. FY'23 i have 35p eps we should know soon enough, FY24 north of 40p is 13x or cash adjusted 12x and i would expect us to trade at 15x so share price target £6 for me. If we beat 2023 expectations then blue sky of course.