In its Annual Results for the year ended 30 April 2020, the financial services group acknowledged the challenges of a difficult 12-month period and outlined the actions taken to refocus the business.
The key points from the financial period are:
- Continuing revenue growth of 7% (2019: 45%)
- Delivered gross margin on continuing operations of 51% (2019: 54.1%)
- Net loss (£2.7m) (2019: profit £9.7m)
- Underlying EBITDA of £11.5m (2019: £11.8m)
- 50% of Group owned by staff
- Disposed of InAdmin RiskCo Group (IARG)
Chairman Andrew Haining said that a combination of factors had contributed to a difficult year for the Group, including the impact of COVID-19 during the final quarter and recognition that changes to the Group’s acquisition strategy and organisational structure needed to be made.
Mr Haining said that the Group had recognised that some difficult decisions were necessary and had moved quickly to refocus on its core business strengths. ‘This strategy has come at a cost, but we believe it is a cost that will produce a more efficient and robust business, one that is fully equipped to adapt and grow in the coming years.
‘This year, extraordinary challenging times have revealed the true calibre and quality of the people who make up the Group,’ Mr Haining added. “At every level, across our globally expanding business, everyone has stepped up to rethink, reorganise, and create a more efficient, more flexible and ultimately more resilient operation.”
The Group continues to generate good organic revenue growth and is making good progress on reducing its cost base, with a number of changes implemented by the new senior management team in the fourth quarter.
Chief Executive Officer, Rob Fearis, who took up the role in February, said the new executive team is confident that actions taken to increase efficiencies will bring about positive and consistent change in future Group performance. “As our brand grows on the global stage, it is vital that we present a unified and consistent shop window to the market,’ he said. ‘This presentation has to be driven by us becoming a single global team, fully integrated at every level. The pursuit of this is well under way and will continue at pace.”
Mr Haining and Iain Stokes have decided to stand down as Chairman and Director respectively. Mr Haining will retire from his position when a successor has been appointed, it is envisaged that this process will be concluded by 30 April 2021. Mr Stokes’ retirement date is yet to be confirmed.
The TISE-listed Group employed nearly 500 people across 17 locations at the end of the financial year, with 76% of management invested in the business and 50% of the Group owned by staff.