Panoply Holdings PLC (The) Trading Update and Notice of Results (5515T)

TIDMTPX

RNS Number : 5515T

Panoply Holdings PLC (The)

21 July 2020

This announcement contains inside information

21 July 2020

The Panoply Holdings PLC

("The Panoply", or the "Group")

Trading update

and

Notice of Results

The Panoply Holdings PLC, the technology-enabled services group focused on digital transformation, provides an update on its trading for the 12 months ended 31 March 2020 together with Q1 FY 2021 . This is to provide transparency at a time of market uncertainty.

Highlights:

Year ended 31 March 2020

 
      --   Revenue for 12 months ended 31 March 2020 of GBP31.5m (unaudited) 
            (FY19 GBP22.1m****) with Adjusted EBITDA in line with market 
            expectations 
      --   Cash as at 31 March 2020 of GBP4.5m (unaudited) (FY19 GBP5.7m). 
            This has since risen to GBP6.8m*** as at 30 June 2020 
      --   Preliminary unaudited results to be announced on 30 July 
            2020 
 

Q1 FY 2021

 
      --   Record performance for the Group in Q1 FY21, with unaudited 
            revenue and Adjusted EBITDA* at GBP10.1m and GBP1.7m respectively. 
            This compares with Q1 FY20 unaudited revenue and Adjusted 
            EBITDA on a statutory basis of GBP6.3m and GBP0.5m and a 
            like-for-like basis** of GBP9.2m and GBP1.1m respectively 
      --   Organic revenue growth of 10% on a like-for-like basis** 
      --   Organic Adjusted EBITDA growth of 55% on a like-for-like 
            basis ** 
      --   Significant new contract wins were secured in the quarter 
            with a value of GBP 14.0m 
      --   Arthurly integrating well into the Group and have already 
            participated in winning a significant group wide new client 
            contract 
      --   Strong balance sheet with GBP6.8m*** cash as at 30 June 
            2020 and net cash of GBP1.8m, representing a net cash inflow 
            of GBP2.3m 
      --   No use of the government furlough scheme and continuing 
            to recruit to reflect ongoing growth 
 

*Adjusted EBITDA is a non-IFRS measure that the Company uses to measure its performance and is defined as earnings before interest, taxation, depreciation and amortisation and after add back of exceptional items related to acquisitions made by the Group, fair value adjustments, share based payment charges and pre IFRS 16 adjustments.

**Like-for-like is a non-GAAP/IFRS measure that presents the first quarter of the prior year being restated to show the unaudited numbers of the existing and acquired businesses consolidated for the same months as in 2021.

*** Actual cash at GBP8.8m taking into account GBP2m of deferred tax (VAT and National Insurance) that is being paid down in the current quarter.

**** proforma and on a similar basis as reported in Panoply's Admission Document on the assumption that Manifesto Digital Limited, Not Binary Limited, Questers Global Group Limited and Bene Agere Norden AS were owned for the full period and Deeson Group Holdings Limited, iDisrupted Ltd and Greenshoot Labs from the date of acquisition. The information was prepared in this way in order to provide investors with a clearer picture of the performance of the entities on a combined basis.

This performance has been achieved through the Group's position as an alternative digital transformation provider to the UK public services sector at a time when the increased value provided by challengers has been acknowledged at senior ministerial level. Coming off the back of a very strong Q4 FY20 and with momentum continuing into Q2 FY21, the Board believes the results reflect a structural change in public sector procurement. As in previous years, the Group also expects the current fiscal year to be second-half weighted, reflecting the scheduling of public sector contract renewals.

As a result of the strong start to the new financial year, in addition to that momentum continuing into Q2, the Group now expects revenue and adjusted EBITDA for the year to be significantly above current market expectations .

Senior appointment

During Q1 FY21 the Group appointed Simon Wakeman, a business leader with more than 20 years' experience in the private and public sector, to the role of Chief Operating Officer. Simon brings a wealth of leadership and technical experience to the role . This is alongside a strong network and understanding of the sectors in which The Panoply operates, having been the Managing Director at Deeson Group Ltd and previously at Medway Council & East Sussex County Council. Simon has not been appointed to the Board of The Panoply.

Notice of results

The Panoply will announced its unaudited preliminary results for the year ended 31 March 2020 on Thursday 30 July 2020.

The Group will be hosting webinars for analysts and retail investors on Tuesday 30 July at 09:00am and 11:30am, respectively.

If you would like to register for the analyst webinar, please contact [e-mail]

Retail investors can sign up for free using the Investor Meet Company platform, and add to meet The Panoply via https://www.investormeetcompany.com/the-panoply-holdings-plc/register-investor . Investors who have already registered and added to meet the Company will be automatically invited.

Neal Gandhi, CEO of The Panoply commented:

"The Panoply finds itself in one of the few sweet spots in the economy; that of digital transformation in public services. Our strong start to the year, which comes off the back of a good performance in Q4 FY20, and has continued into Q2 shows that momentum and excitement around the Group is increasing.

This coincides with HM Government recognising that true innovation and transformation is more likely to happen if contracts are awarded to challenger companies that are 21st century cloud and agile native organisations and that are happy to embrace working alongside client teams. Indeed Michael Gove's Ditchley Lecture, delivered on June 27th, spoke directly to this. We have long forecast this structural change and now that we have begun to reach critical mass, this seems to be playing out in contract wins.

Our performance goes well beyond Covid-19 related contracts , which accounted for just 9% of signed deals in the quarter. With Covid-19 delayed projects now beginning to come back on stream, we continue into the rest of FY21 and beyond with increased confidence and continue to be excited about delivering better outcomes for service users along with better value for taxpayers.

The Board would like to acknowledge the incredible versatility and professionalism demonstrated by staff during this unprecedented period. Many have juggled childcare duties or have worked at home in less than ideal circumstances yet have continued to deliver at the highest levels. We thank them for their dedication and commitment."

Enquiries:

 
   The Panoply Holdings 
     Neal Gandhi (CEO)                 Via Alma PR 
     Oliver Rigby (CFO) 
 
     Stifel Nicolaus Europe Limited    [phone] 
     (Nomad and Broker) 
    Fred Walsh 
     Alex Price 
 
    Alma PR                           [e-mail] 
     (Financial PR)                    [phone] 
     Susie Hudson 
     Josh Royston 
     Harriet Jackson 
 
 

The person responsible for making this announcement is Oliver Rigby, CFO.

About The Panoply

The Panoply is a digitally native technology services company, built to service clients' digital transformation needs. Founded in 2016, with the aim of identifying and acquiring best-of-breed specialist information technology, design and innovation consulting businesses across Europe, the Group collaborates with its clients to deliver the technology outcomes they're looking for at the pace that they expect and demand.

More information is available at www.thepanoply.com

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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July 21, 2020 02:00 ET (06:00 GMT)