Praxis, a company listed on The International Stock Exchange, has reported organic growth of 4.2% for the 12-month period ended 31 December 2022.
The 12-month period saw the Group return to revenue growth in each of its key markets and continue to operate effectively during a period of global uncertainty, returning £40m of capital from the sale of its fund management division to shareholders, further reducing its net debt and paying its first shareholder dividend since 2019.
The Group took decisive steps on its strategy to grow revenue and achieve underlying EBITDA of £20m+ by 2025. Reporting an increase in profit margin, growth and revenue, the Board, led by Chairman Iain Torrens, has today declared a final dividend of 1.25p, which will be paid to shareholders in August 2023.
As the Group renewed its focus on private wealth and corporate services, each of the Group’s jurisdictional reporting lines showed stable or improved revenue and gross profit margin, which together with the focus on operating expenses, resulted in the Group increasing underlying EBITDA from £3m for the eight-month period to 31 December 2021 to £5.2m for 2022.
2022 was also a year of celebration as staff, clients and intermediaries marked the Group’s 50th anniversary with events across the network attended by 500 guests. The Group also launched a refreshed brand identity and its ‘Open Ideas’ proposition, to reinforce its position as a dynamic and unified professional services firm.
As part of the 2025 vision, the Group strategy is focused on four pillars of change covering strategic growth and innovation; organic growth and business effectiveness; reshaping and efficiencies; and governance, culture and behaviour.
CEO Rob Fearis (pictured), who marked 30 years with Praxis in 2022, said the transformation programme is designed to drive revenue growth and deliver the target operating model on which the Group will build its future success.
He said: “While 2022 was a year of consolidation, 2023 is pivotal as we embed the four pillars of our strategy, refine our processes and deliver material improvements to our growth trajectory.
“We will continue to focus on protecting our clients’ interests, deepening our relationships with our intermediaries, and rewarding our shareholders. We will also be dedicated to ensuring that our people continue to view Praxis as an employer who values them and their individual contributions.”
After the year end, the Group issued an unsecured £15m bond, the proceeds of which were used to repay loan facilities and finance the acquisition of the Sarnia Yachts (subject to external approvals), which was announced yesterday and adds the provision of superyacht ownership and operational services to its portfolio. Sarnia Yachts has built a client base that presents significant opportunities for both businesses.
“We are incredibly excited about this acquisition,” said Mr Fearis. “There is great synergy between our businesses in terms of culture and client base as well as geographic footprint, and this development reflects our confidence both in Sarnia Yachts and in the yacht services market.”
