Endava Announces Second Quarter Fiscal Year 2025 Results
Endava (NYSE: DAVA) reported Q2 FY2025 results with revenue reaching £195.6 million, representing a 6.6% year-over-year increase and 9.1% at constant currency. The company announced a $100 million share repurchase program, subject to shareholder approval in March 2025.
Key financial metrics include diluted EPS of £0.11 (down from £0.14), adjusted diluted EPS remaining stable at £0.30, and profit before tax of £2.5 million (down from £10.6 million). The company maintained strong cash position with £60.1 million in cash and cash equivalents.
Geographic revenue distribution showed North America at 39%, Europe at 24%, UK at 32%, and rest of world at 5%. The company serves 141 clients with over £1 million in revenue, with top 10 clients accounting for 36% of revenue. For Q3 FY2025, Endava expects revenue between £198.0-£200.0 million, representing 13-14% constant currency growth.
Endava (NYSE: DAVA) ha riportato i risultati del secondo trimestre dell'anno fiscale 2025, con un fatturato che ha raggiunto 195,6 milioni di sterline, rappresentando un incremento del 6,6% rispetto all'anno precedente e del 9,1% a valuta costante. L'azienda ha annunciato un programma di riacquisto di azioni da 100 milioni di dollari, soggetto all'approvazione degli azionisti a marzo 2025.
I principali indicatori finanziari includono un utile per azione diluito di £0,11 (in calo rispetto a £0,14), un utile per azione diluito rettificato stabile a £0,30 e un profitto ante imposte di £2,5 milioni (in calo rispetto a £10,6 milioni). L'azienda ha mantenuto una solida posizione di liquidità con 60,1 milioni di sterline in contante e equivalenti.
La distribuzione geografica del fatturato mostra il Nord America al 39%, l'Europa al 24%, il Regno Unito al 32% e il resto del mondo al 5%. L'azienda serve 141 clienti con oltre 1 milione di sterline di fatturato, con i primi 10 clienti che rappresentano il 36% del fatturato. Per il terzo trimestre dell'anno fiscale 2025, Endava prevede un fatturato compreso tra 198,0-200,0 milioni di sterline, rappresentando una crescita del 13-14% a valuta costante.
Endava (NYSE: DAVA) reportó los resultados del segundo trimestre del año fiscal 2025, con ingresos que alcanzaron 195,6 millones de libras esterlinas, lo que representa un aumento del 6,6% en comparación con el año anterior y del 9,1% a moneda constante. La compañía anunció un programa de recompra de acciones de 100 millones de dólares, sujeto a la aprobación de los accionistas en marzo de 2025.
Los principales indicadores financieros incluyen un EPS diluido de £0,11 (bajando de £0,14), un EPS diluido ajustado que se mantiene estable en £0,30, y una ganancia antes de impuestos de £2,5 millones (bajando de £10,6 millones). La compañía mantiene una sólida posición de efectivo con 60,1 millones de libras esterlinas en efectivo y equivalentes.
La distribución geográfica de los ingresos muestra a América del Norte en un 39%, Europa en un 24%, Reino Unido en un 32% y el resto del mundo en un 5%. La compañía atiende a 141 clientes con más de 1 millón de libras esterlinas en ingresos, siendo los 10 principales clientes responsables del 36% de los ingresos. Para el tercer trimestre del año fiscal 2025, Endava espera ingresos entre 198,0-200,0 millones de libras esterlinas, representando un crecimiento del 13-14% a moneda constante.
Endava (NYSE: DAVA)는 2025 회계연도 2분기 실적을 보고하며, 매출이 1억 9,560만 파운드에 도달했으며, 이는 전년 대비 6.6% 증가하고, 일정 환율 기준으로는 9.1% 증가한 수치입니다. 회사는 1억 달러 규모의 자사주매입 프로그램을 발표했으며, 이는 2025년 3월 주주 승인을 받아야 합니다.
주요 재무 지표로는 희석 주당순이익(EPS)이 £0.11(£0.14에서 감소), 조정된 희석 EPS는 £0.30으로 안정적이며, 세전 이익은 £250만(£1,060만에서 감소)입니다. 회사는 6,010만 파운드의 현금 및 현금성 자산으로 강력한 현금 위치를 유지하고 있습니다.
지리적 매출 분포는 북미 39%, 유럽 24%, 영국 32%, 기타 지역 5%를 나타냅니다. 이 회사는 141명의 고객에게 100만 파운드 이상의 매출을 제공하며, 상위 10명의 고객이 매출의 36%를 차지합니다. 2025 회계연도 3분기 동안 Endava는 1억 9,800만-2억 파운드의 매출을 예상하며, 이는 일정 환율 기준으로 13-14% 성장할 것으로 보입니다.
Endava (NYSE: DAVA) a publié les résultats du deuxième trimestre de l'exercice 2025, avec des revenus atteignant 195,6 millions de livres sterling, représentant une augmentation de 6,6% par rapport à l'année précédente et de 9,1% à taux de change constant. L'entreprise a annoncé un programme de rachat d'actions de 100 millions de dollars, soumis à l'approbation des actionnaires en mars 2025.
Les principaux indicateurs financiers comprennent un BPA dilué de £0,11 (en baisse par rapport à £0,14), un BPA dilué ajusté restant stable à £0,30, et un bénéfice avant impôts de £2,5 millions (en baisse par rapport à £10,6 millions). L'entreprise a maintenu une solide position de trésorerie avec 60,1 millions de livres sterling en espèces et équivalents.
La répartition géographique des revenus montre l'Amérique du Nord à 39%, l'Europe à 24%, le Royaume-Uni à 32% et le reste du monde à 5%. L'entreprise sert 141 clients avec plus de 1 million de livres sterling de revenus, les 10 principaux clients représentant 36% des revenus. Pour le troisième trimestre de l'exercice 2025, Endava s'attend à des revenus compris entre 198,0-200,0 millions de livres sterling, représentant une croissance de 13-14% à taux de change constant.
Endava (NYSE: DAVA) berichtete über die Ergebnisse des zweiten Quartals des Geschäftsjahres 2025, wobei der Umsatz 195,6 Millionen Pfund erreichte, was einem Anstieg von 6,6% im Vergleich zum Vorjahr und 9,1% bei konstanten Währungen entspricht. Das Unternehmen kündigte ein Aktienrückkaufprogramm über 100 Millionen Dollar an, das der Genehmigung der Aktionäre im März 2025 unterliegt.
Wichtige Finanzkennzahlen umfassen einen verwässerten Gewinn pro Aktie von £0,11 (rückläufig von £0,14), einen stabilen bereinigten verwässerten Gewinn pro Aktie von £0,30 und einen Gewinn vor Steuern von £2,5 Millionen (rückläufig von £10,6 Millionen). Das Unternehmen hielt eine starke Liquiditätsposition mit 60,1 Millionen Pfund in Bargeld und Barmitteln.
Die geografische Umsatzverteilung zeigt Nordamerika mit 39%, Europa mit 24%, das Vereinigte Königreich mit 32% und den Rest der Welt mit 5%. Das Unternehmen bedient 141 Kunden mit über 1 Million Pfund Umsatz, wobei die zehn größten Kunden 36% des Umsatzes ausmachen. Für das dritte Quartal des Geschäftsjahres 2025 erwartet Endava einen Umsatz zwischen 198,0-200,0 Millionen Pfund, was einem Wachstum von 13-14% bei konstanten Währungen entspricht.
- Revenue increased 6.6% YoY to £195.6 million
- Announced $100 million share repurchase program
- Strong Q3 guidance with 13-14% expected constant currency growth
- Maintained adjusted diluted EPS at £0.30
- Healthy cash position with £60.1 million in cash and cash equivalents
- Profit before tax declined to £2.5 million from £10.6 million YoY
- Diluted EPS decreased to £0.11 from £0.14 YoY
- Number of £1M+ revenue clients decreased to 141 from 150 YoY
- Adjusted profit before tax margin declined to 11.2% from 12.4% YoY
Insights
Endava's Q2 FY2025 results reveal a company navigating through a strategic transition phase. The 6.6% revenue growth (9.1% at constant currency) demonstrates resilience, but the more telling story lies in the evolving business mix and profitability dynamics.
The significant compression in profit before tax to
The newly announced
The revenue mix transformation reveals important strategic shifts:
- Healthcare vertical's growth from
4% to12% indicates successful diversification into more stable, recession-resistant sectors - The decline in Payments (from
26% to19% ) and TMT (from23% to19% ) suggests a deliberate rebalancing away from more volatile tech-dependent sectors - North American revenue contribution increase to
39% demonstrates successful geographic expansion in the world's largest tech market
The stable headcount of 11,668 despite revenue growth points to improved operational efficiency and higher revenue per employee. However, the slight decrease in million-pound clients (141 vs 150) and increased concentration among top 10 clients (
Looking forward, the company's guidance for Q3 FY2025 projects revenue of
Q2 FY2025
Diluted EPS
Adjusted Diluted EPS
Endava announces
"Our results for the second quarter of FY25 were solid with improved profitability. Gen AI adoption is becoming a key priority for clients. With our hands-on experience, coupled with deep industry expertise, we believe we are in a strong position to cut through the hype that our clients are exposed to regarding AI and to work with them to deliver real business value. Additionally, today, we announced our first share buyback program totaling
SECOND QUARTER FISCAL YEAR 2025 FINANCIAL HIGHLIGHTS:
-
Revenue for Q2 FY2025 was
£195.6 million , an increase of6.6% compared to£183.6 million in the same period in the prior year. -
Revenue increase at constant currency (a non-IFRS measure)* was
9.1% for Q2 FY2025. -
Profit before tax for Q2 FY2025 was
£2.5 million , compared to£10.6 million in the same period in the prior year. -
Adjusted profit before tax (a non-IFRS measure)* for Q2 FY2025 was
£21.8 million , or11.2% of revenue, compared to£22.7 million , or12.4% of revenue, in the same period in the prior year. -
Profit for the period was
£6.9 million , resulting in a diluted earnings per share ("EPS") of£0.11 , compared to profit of£8.3 million and diluted EPS of£0.14 in the same period in the prior year. -
Adjusted profit for the period (a non-IFRS measure)* was
£17.9 million , resulting in adjusted diluted EPS (a non-IFRS measure)* of£0.30 , compared to adjusted profit for the period of£17.5 million and adjusted diluted EPS of£0.30 in the same period in the prior year.
CASH FLOW:
-
Net cash from operating activities was
£32.0 million in Q2 FY2025, compared to net cash from operating activities of£35.0 million in the same period in the prior year. -
Adjusted free cash flow (a non-IFRS measure)* was
£31.6 million in Q2 FY2025, compared to£33.6 million in the same period in the prior year. -
At December 31, 2024, Endava had cash and cash equivalents of
£60.1 million , compared to£62.4 million at June 30, 2024.
* Definitions of the non-IFRS measures used by the Company and a reconciliation of such measures to the related IFRS financial measure can be found under the sections below titled “Non-IFRS Financial Information” and “Reconciliation of IFRS Financial Measures to Non-IFRS Financial Measures.”
OTHER METRICS FOR THE QUARTER ENDED DECEMBER 31, 2024:
- Headcount totaled 11,668 at December 31, 2024, with an average of 10,456 operational employees in Q2 FY2025, compared to a headcount of 11,539 at December 31, 2023 and an average of 10,461 operational employees in the same period in the prior year.
-
Number of clients with over
£1 million in revenue on a rolling twelve-month basis was 141 at December 31, 2024, compared to 150 clients at December 31, 2023. -
Top 10 clients accounted for
36% of revenue in Q2 FY2025, compared to34% in the same period in the prior year. -
By geographic region,
39% of revenue was generated inNorth America ,24% was generated inEurope ,32% was generated in theUnited Kingdom and5% was generated in the rest of the world in Q2 FY2025. This compares to31% inNorth America ,26% inEurope ,34% in theUnited Kingdom and9% in the Rest of the World in the same period in the prior year. -
By industry vertical,
19% of revenue was generated from Payments,19% from BCM,9% from Insurance,19% from TMT,9% from Mobility,12% from Healthcare, and13% from Other in Q2 FY2025. This compares to26% from Payments,14% from BCM,8% from Insurance,23% from TMT,11% from Mobility,4% from Healthcare, and14% from Other in the same period in the prior year.
OUTLOOK:
Third Quarter Fiscal Year 2025:
Endava expects revenue will be in the range of
Full Fiscal Year 2025:
Endava expects revenue will be in the range of
This above guidance for the third quarter and full fiscal year 2025 assumes the exchange rates on January 31, 2025 (when the exchange rate was
Endava is not able, at this time, to reconcile its expectations for the third quarter and full fiscal year 2025 for a rate of revenue growth or decline at constant currency or adjusted diluted EPS to their respective most directly comparable IFRS measures as a result of the uncertainty regarding, and the potential variability of, reconciling items such as share-based compensation expense, amortisation of acquired intangible assets, foreign currency exchange losses / (gains), net, and fair value movement of contingent consideration, as applicable. Accordingly, a reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Endava's results computed in accordance with IFRS.
The guidance provided above is forward-looking in nature. Actual results may differ materially. See “Forward-Looking Statements” below.
SHARE REPURCHASE PROGRAM:
Endava's Board of Directors has approved a share repurchase program authorizing the Company to repurchase up to
The Company intends to fund the share repurchases through a combination of cash generated from operations and drawing debt funding through its revolving credit facility. The exact number of shares to be repurchased by the Company under the share repurchase program, if any, is not guaranteed, including whether the Company utilizes the full
The Company may repurchase shares from time to time on the open market or in privately negotiated transactions, or otherwise in accordance with applicable federal securities laws, including Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The timing, manner, price and amount of any repurchases will be determined by the discretion of management, depending on market conditions and other factors.
CONFERENCE CALL DETAILS:
The Company will host a conference call at 8:00 am ET today, February 20, 2025, to review its Q2 FY2025 results. To participate in Endava’s Q2 FY2025 earnings conference call, please dial in at least five minutes prior to the scheduled start time (844) 481-2736 or (412) 317-0665 for international participants, Conference ID: Endava Call.
Investors may listen to the call on Endava’s Investor Relations website at http://investors.Endava.com. The webcast will be recorded and available for replay until Thursday March 20, 2025.
ABOUT ENDAVA PLC:
We are a leading provider of next-generation technology services, dedicated to enabling our customers to drive real impact and meaningful change. By combining world-class engineering, deep industry expertise and a customer-centric mindset, we consult and partner with our customers to create technological solutions that fuel transformation and empower businesses to succeed in the AI-driven digital shift. From ideation to production, we support our customers with tailor-made solutions at every stage of their digital transformation, regardless of industry, region or scale.
Endava’s clients span payments, insurance, finance and banking, technology, media, telecommunications, healthcare and life sciences, mobility, retail and consumer goods and more. As of December 31, 2024, 11,668 Endavans are helping clients break new ground across locations in
NON-IFRS FINANCIAL INFORMATION:
To supplement Endava’s Condensed Consolidated Statements of Comprehensive Income, Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows presented in accordance with IFRS, the Company uses non-IFRS measures of certain components of financial performance in this press release. These measures include revenue growth/(decline) rate at constant currency, adjusted profit before tax, adjusted profit for the period, adjusted diluted EPS and adjusted free cash flow.
Revenue growth/(decline) rate at constant currency is calculated by translating revenue from entities reporting in foreign currencies into British Pounds using the comparable foreign currency exchange rates from the prior period. For example, the average currency rates in effect for the fiscal quarter ended December 31, 2023 were used to convert revenue for the fiscal quarter ended December 31, 2024 and the revenue for the comparable prior period.
Adjusted profit before tax ("Adjusted PBT") is defined as the Company’s profit before tax adjusted to exclude the impact of share-based compensation expense, amortisation of acquired intangible assets, realised and unrealised foreign currency exchange (gains)/losses, net, restructuring costs, and fair value movement of contingent consideration, all of which are non-cash items except for realised foreign currency exchange (gains)/losses, net. Our Adjusted PBT margin is our Adjusted PBT as a percentage of our total revenue.
Adjusted profit for the period is defined as Adjusted PBT less the adjusted tax charge for the period. The adjusted tax charge is the tax charge adjusted for the tax impact of the adjustments to PBT and the release of the deferred tax liability relating to Romanian withholding tax.
Adjusted diluted EPS is defined as Adjusted profit for the period, divided by weighted average number of shares outstanding - diluted.
Adjusted free cash flow is the Company’s net cash from operating activities, plus grants received, less net purchases of non-current assets (tangible and intangible). Adjusted free cash flow is not intended to be a measure of residual cash available for management's discretionary use since it omits significant sources and uses of cash flow, including mandatory debt repayments and changes in working capital.
Management believes these measures help illustrate underlying trends in the Company's business and uses the measures to establish budgets and operational goals, communicated internally and externally, for managing the Company's business and evaluating its performance. Management also believes the presentation of its non-IFRS financial measures enhances an investor’s overall understanding of the Company’s historical financial performance. The presentation of the Company’s non-IFRS financial measures is not meant to be considered in isolation or as a substitute for the Company’s financial results prepared in accordance with IFRS, and its non-IFRS measures may be different from non-IFRS measures used by other companies. Investors should review the reconciliation of the Company’s non-IFRS financial measures to the comparable IFRS financial measures included below, and not rely on any single financial measure to evaluate the Company’s business.
FORWARD-LOOKING STATEMENTS:
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by the use of terms and phrases such as “believe,” “expect,” "intends," "outlook," “may,” “will,” and other similar terms and phrases. Such forward-looking statements include, but are not limited to, the statements regarding trends with respect to the adoption of generative AI, the share repurchase program, including Endava's anticipated receipt of shareholder approval for the share repurchase program, and management's financial outlook for the third quarter and full fiscal year 2025. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: Endava’s ability to achieve its revenue growth goals including as a result of a slower conversion of its pipeline; Endava's expectations of future operating results or financial performance; Endava’s ability to accurately forecast and achieve its announced guidance; Endava's ability to retain existing clients and attract new clients, including its ability to increase revenue from existing clients and diversify its revenue concentration; Endava’s ability to attract and retain highly-skilled IT professionals at cost-effective rates; Endava's ability to successfully identify acquisition targets, consummate acquisitions and successfully integrate acquired businesses and personnel; Endava's ability to penetrate new industry verticals and geographies and grow its revenue in current industry verticals and geographies; Endava’s ability to maintain favorable pricing and utilization rates to support its gross margin; the effects of increased competition as well as innovations by new and existing competitors in its market; the size of Endava's addressable market and market trends; Endava’s ability to adapt to technological change and industry trends and innovate solutions for its clients; Endava's plans for growth and future operations, including its ability to manage its growth; Endava's ability to effectively manage its international operations, including Endava's exposure to foreign currency exchange rate fluctuations; Endava's future financial performance, including trends in revenue, cost of sales, gross profit, selling, general and administrative expenses, finance income and expense and taxes; the impact of unstable market and economic conditions, including as a result of actual or anticipated changes in interest rates, economic inflation and the responses by central banking authorities to control such inflation; and the impact of political instability, natural disaster, events of terrorism and wars, including the military conflict between
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
Six Months Ended
|
Three Months Ended
|
||||||
|
2024 |
2023(1) |
2024 |
2023 |
||||
|
£’000 |
£’000 |
£’000 |
£’000 |
||||
REVENUE |
390,641 |
|
371,973 |
|
195,589 |
|
183,552 |
|
Cost of sales |
|
|
|
|
||||
Direct cost of sales |
(283,066 |
) |
(259,412 |
) |
(143,546 |
) |
(132,093 |
) |
Allocated cost of sales |
(13,898 |
) |
(13,218 |
) |
(7,025 |
) |
(6,586 |
) |
Total cost of sales |
(296,964 |
) |
(272,630 |
) |
(150,571 |
) |
(138,679 |
) |
GROSS PROFIT |
93,677 |
|
99,343 |
|
45,018 |
|
44,873 |
|
Selling, general and administrative expenses |
(87,314 |
) |
(78,618 |
) |
(43,345 |
) |
(40,255 |
) |
OPERATING PROFIT |
6,363 |
|
20,725 |
|
1,673 |
|
4,618 |
|
Net finance income/(expense) |
354 |
|
7,193 |
|
831 |
|
5,987 |
|
PROFIT BEFORE TAX |
6,717 |
|
27,918 |
|
2,504 |
|
10,605 |
|
Tax on profit on ordinary activities |
2,381 |
|
(7,205 |
) |
4,347 |
|
(2,258 |
) |
PROFIT FOR THE PERIOD |
9,098 |
|
20,713 |
|
6,851 |
|
8,347 |
|
OTHER COMPREHENSIVE INCOME |
|
|
|
|
||||
Items that may be reclassified subsequently to profit or loss: |
|
|
|
|
||||
Exchange differences on translating foreign operations and net investment hedge impact |
(13,813 |
) |
1,869 |
|
9,527 |
|
(2,873 |
) |
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF THE COMPANY |
(4,715 |
) |
22,582 |
|
16,378 |
|
5,474 |
|
|
|
|
|
|
||||
EARNINGS PER SHARE (EPS): |
|
|
|
|
||||
Weighted average number of shares outstanding - Basic |
59,269,752 |
|
58,101,072 |
|
59,488,389 |
|
58,300,691 |
|
Weighted average number of shares outstanding - Diluted |
59,472,250 |
|
58,367,296 |
|
59,628,436 |
|
58,602,535 |
|
Basic EPS (£) |
0.15 |
|
0.36 |
|
0.12 |
|
0.14 |
|
Diluted EPS (£) |
0.15 |
|
0.35 |
|
0.11 |
|
0.14 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
December 31, 2024 |
June 30, 2024 |
December 31, 2023 (1) |
|||
|
£’000 |
£’000 |
£’000 |
|||
ASSETS - NON-CURRENT |
|
|
|
|||
Goodwill |
511,647 |
|
515,724 |
|
254,180 |
|
Intangible assets |
114,100 |
|
127,797 |
|
60,818 |
|
Property, plant and equipment |
16,603 |
|
20,638 |
|
23,181 |
|
Lease right-of-use assets |
47,459 |
|
53,294 |
|
54,949 |
|
Deferred tax assets |
21,466 |
|
18,323 |
|
22,084 |
|
Financial assets and other receivables |
9,005 |
|
10,499 |
|
6,386 |
|
TOTAL |
720,280 |
|
746,275 |
|
421,598 |
|
ASSETS - CURRENT |
|
|
|
|||
Trade and other receivables |
190,059 |
|
193,673 |
|
172,002 |
|
Corporation tax receivable |
10,072 |
|
11,402 |
|
2,127 |
|
Financial assets |
118 |
|
183 |
|
186 |
|
Cash and cash equivalents |
60,065 |
|
62,358 |
|
198,602 |
|
TOTAL |
260,314 |
|
267,616 |
|
372,917 |
|
TOTAL ASSETS |
980,594 |
|
1,013,891 |
|
794,515 |
|
LIABILITIES - CURRENT |
|
|
|
|||
Lease liabilities |
14,457 |
|
14,450 |
|
13,782 |
|
Trade and other payables |
106,260 |
|
116,569 |
|
85,347 |
|
Corporation tax payable |
9,784 |
|
8,556 |
|
4,565 |
|
Contingent consideration |
3,577 |
|
8,444 |
|
5,335 |
|
Deferred consideration |
4,170 |
|
5,840 |
|
2,499 |
|
TOTAL |
138,248 |
|
153,859 |
|
111,528 |
|
LIABILITIES - NON CURRENT |
|
|
|
|||
Borrowings |
123,669 |
|
144,754 |
|
— |
|
Lease liabilities |
37,711 |
|
43,557 |
|
45,645 |
|
Deferred tax liabilities |
24,719 |
|
30,814 |
|
13,541 |
|
Contingent consideration |
1,155 |
|
— |
|
— |
|
Deferred consideration |
— |
|
943 |
|
3,280 |
|
Other liabilities |
377 |
|
509 |
|
543 |
|
TOTAL |
187,631 |
|
220,577 |
|
63,009 |
|
EQUITY |
|
|
|
|||
Share capital |
1,189 |
|
1,180 |
|
1,167 |
|
Share premium |
21,280 |
|
21,280 |
|
17,753 |
|
Merger relief reserve |
63,440 |
|
63,440 |
|
48,139 |
|
Retained earnings |
602,688 |
|
573,640 |
|
566,589 |
|
Other reserves |
(33,872 |
) |
(20,059 |
) |
(13,644 |
) |
Investment in own shares |
(10 |
) |
(26 |
) |
(26 |
) |
TOTAL |
654,715 |
|
639,455 |
|
619,978 |
|
TOTAL LIABILITIES AND EQUITY |
980,594 |
|
1,013,891 |
|
794,515 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Six Months Ended
|
Three Months Ended
|
||||||
|
2024 |
2023 |
2024 |
2023 |
||||
|
£’000 |
£’000 |
£’000 |
£’000 |
||||
OPERATING ACTIVITIES |
|
|
|
|
||||
Profit for the period |
9,098 |
|
20,713 |
|
6,851 |
|
8,347 |
|
Income tax charge |
(2,381 |
) |
7,205 |
|
(4,347 |
) |
2,258 |
|
Non-cash adjustments |
46,207 |
|
31,833 |
|
22,614 |
|
16,033 |
|
Tax paid |
(3,786 |
) |
(4,814 |
) |
(2,466 |
) |
(2,466 |
) |
Net changes in working capital |
(12,716 |
) |
(3,314 |
) |
9,396 |
|
10,864 |
|
Net cash from operating activities |
36,422 |
|
51,623 |
|
32,048 |
|
35,036 |
|
|
|
|
|
|
||||
INVESTING ACTIVITIES |
|
|
|
|
||||
Purchase of non-current assets (tangibles and intangibles) |
(1,571 |
) |
(2,200 |
) |
(436 |
) |
(1,393 |
) |
Proceeds/(Loss) from disposal of non-current assets |
36 |
|
(27 |
) |
— |
|
(30 |
) |
Payment for acquisition of subsidiary, net of cash acquired |
(5,900 |
) |
(6,710 |
) |
(5,832 |
) |
(2,528 |
) |
Other acquisition-related settlements |
— |
|
(6,680 |
) |
— |
|
— |
|
Interest received |
720 |
|
3,522 |
|
353 |
|
1,957 |
|
Net cash used in investing activities |
(6,715 |
) |
(12,095 |
) |
(5,915 |
) |
(1,994 |
) |
|
|
|
|
|
||||
FINANCING ACTIVITIES |
|
|
|
|
||||
Proceeds from sublease |
64 |
|
87 |
|
34 |
|
31 |
|
Proceeds from bank loans |
10,000 |
|
— |
|
10,000 |
|
— |
|
Repayment of borrowings |
(30,842 |
) |
— |
|
(23,842 |
) |
— |
|
Repayment of lease liabilities |
(6,159 |
) |
(6,295 |
) |
(3,066 |
) |
(2,947 |
) |
Repayment of lease interest |
(989 |
) |
(1,125 |
) |
(482 |
) |
(553 |
) |
Interest and debt financing costs paid |
(4,282 |
) |
(583 |
) |
(2,030 |
) |
(296 |
) |
Grant received |
274 |
|
230 |
|
— |
|
23 |
|
Proceeds from exercise of options |
— |
|
3,129 |
|
— |
|
3,118 |
|
Net cash used in financing activities |
(31,934 |
) |
(4,557 |
) |
(19,386 |
) |
(624 |
) |
Net change in cash and cash equivalents |
(2,227 |
) |
34,971 |
|
6,747 |
|
32,418 |
|
|
|
|
|
|
||||
Cash and cash equivalents at the beginning of the period |
62,358 |
|
164,703 |
|
52,811 |
|
168,191 |
|
Exchange differences on cash and cash equivalents |
(66 |
) |
(1,072 |
) |
507 |
|
(2,007 |
) |
Cash and cash equivalents at the end of the period |
60,065 |
|
198,602 |
|
60,065 |
|
198,602 |
|
RECONCILIATION OF IFRS FINANCIAL MEASURES TO NON-IFRS FINANCIAL MEASURES
RECONCILIATION OF REVENUE GROWTH/(DECLINE) RATE AS REPORTED UNDER IFRS TO REVENUE GROWTH/(DECLINE) RATE AT CONSTANT CURRENCY:
|
Six Months Ended
|
Three Months Ended
|
||||||
|
2024 |
2023 |
2024 |
2023 |
||||
REVENUE GROWTH/(DECLINE) RATE AS REPORTED UNDER IFRS |
5.0 |
% |
(7.3 |
%) |
6.6 |
% |
(10.6 |
%) |
Impact of Foreign exchange rate fluctuations |
2.0 |
% |
2.8 |
% |
2.5 |
% |
2.5 |
% |
REVENUE GROWTH/(DECLINE) RATE AT CONSTANT CURRENCY |
7.0 |
% |
(4.5 |
%) |
9.1 |
% |
(8.1 |
%) |
RECONCILIATION OF ADJUSTED PROFIT BEFORE TAX AND ADJUSTED PROFIT FOR THE PERIOD:
|
Six Months Ended
|
Three Months Ended
|
||||||
|
2024 |
2023 |
2024 |
2023 |
||||
|
£’000 |
£’000 |
£’000 |
£’000 |
||||
|
|
|
|
|
||||
PROFIT BEFORE TAX |
6,717 |
|
27,918 |
|
2,504 |
|
10,605 |
|
Adjustments: |
|
|
|
|
||||
Share-based compensation expense |
21,965 |
|
23,556 |
|
10,944 |
|
13,617 |
|
Amortisation of acquired intangible assets |
12,182 |
|
7,085 |
|
6,036 |
|
3,684 |
|
Foreign currency exchange (gains)/losses, net |
(3,420 |
) |
2,685 |
|
(2,574 |
) |
4,764 |
|
Restructuring costs |
5,494 |
|
— |
|
5,494 |
|
— |
|
Fair value movement of contingent consideration |
(1,871 |
) |
(8,706 |
) |
(569 |
) |
(9,942 |
) |
Total adjustments |
34,350 |
|
24,620 |
|
19,331 |
|
12,123 |
|
ADJUSTED PROFIT BEFORE TAX |
41,067 |
|
52,538 |
|
21,835 |
|
22,728 |
|
|
|
|
|
|
||||
PROFIT FOR THE PERIOD |
9,098 |
|
20,713 |
|
6,851 |
|
8,347 |
|
Adjustments: |
|
|
|
|
||||
Adjustments to profit before tax |
34,350 |
|
24,620 |
|
19,331 |
|
12,123 |
|
Release of Romanian withholding tax |
(3,800 |
) |
— |
|
(3,800 |
) |
— |
|
Tax impact of adjustments |
(6,682 |
) |
(4,916 |
) |
(4,511 |
) |
(2,977 |
) |
ADJUSTED PROFIT FOR THE PERIOD |
32,966 |
|
40,417 |
|
17,871 |
|
17,493 |
|
|
|
|
|
|
||||
RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE:
|
Six Months Ended
|
Three Months Ended
|
||||||
|
2024 |
2023 |
2024 |
2023 |
||||
|
£’000 |
£’000 |
£’000 |
£’000 |
||||
|
|
|
|
|
||||
DILUTED EARNINGS PER SHARE (£) |
0.15 |
|
0.35 |
|
0.11 |
|
0.14 |
|
Adjustments: |
|
|
|
|
||||
Share-based compensation expense |
0.37 |
|
0.40 |
|
0.18 |
|
0.23 |
|
Amortisation of acquired intangible assets |
0.20 |
|
0.12 |
|
0.10 |
|
0.06 |
|
Foreign currency exchange (gains)/losses, net |
(0.06 |
) |
0.05 |
|
(0.04 |
) |
0.08 |
|
Restructuring costs |
0.09 |
|
— |
|
0.09 |
|
— |
|
Fair value movement of contingent consideration |
(0.02 |
) |
(0.15 |
) |
— |
|
(0.16 |
) |
Release of Romanian withholding tax |
(0.06 |
) |
— |
|
(0.06 |
) |
— |
|
Tax impact of adjustments |
(0.12 |
) |
(0.08 |
) |
(0.08 |
) |
(0.05 |
) |
Total adjustments |
0.40 |
|
0.34 |
|
0.19 |
|
0.16 |
|
ADJUSTED DILUTED EARNINGS PER SHARE (£) |
0.55 |
|
0.69 |
|
0.30 |
|
0.30 |
|
RECONCILIATION OF NET CASH FROM OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW
|
Six Months Ended
|
Three Months Ended
|
||||||
|
2024 |
2023 |
2024 |
2023 |
||||
|
£’000 |
£’000 |
£’000 |
£’000 |
||||
|
|
|
|
|
||||
NET CASH FROM OPERATING ACTIVITIES |
36,422 |
|
51,623 |
|
32,048 |
|
35,036 |
|
Adjustments: |
|
|
|
|
||||
Grant received |
274 |
|
230 |
|
— |
|
23 |
|
Net purchase of non-current assets (tangibles and intangibles) |
(1,535 |
) |
(2,227 |
) |
(436 |
) |
(1,423 |
) |
ADJUSTED FREE CASH FLOW |
35,161 |
|
49,626 |
|
31,612 |
|
33,636 |
|
SUPPLEMENTARY INFORMATION
SHARE-BASED COMPENSATION EXPENSE
|
Six Months Ended
|
Three Months Ended
|
||
|
2024 |
2023 |
2024 |
2023 |
|
£’000 |
£’000 |
£’000 |
£’000 |
|
|
|
|
|
Direct cost of sales |
15,048 |
16,318 |
7,254 |
9,516 |
Selling, general and administrative expenses |
6,917 |
7,238 |
3,690 |
4,101 |
Total |
21,965 |
23,556 |
10,944 |
13,617 |
DEPRECIATION AND AMORTISATION
|
Six Months Ended
|
Three Months Ended
|
||
|
2024 |
2023 |
2024 |
2023 |
|
£’000 |
£’000 |
£’000 |
£’000 |
|
|
|
|
|
Direct cost of sales |
10,413 |
10,049 |
5,233 |
4,853 |
Selling, general and administrative expenses |
13,720 |
8,712 |
6,823 |
4,489 |
Total |
24,133 |
18,761 |
12,056 |
9,342 |
EMPLOYEES, TOP 10 CUSTOMERS AND REVENUE SPLIT
|
Six Months Ended
|
Three Months Ended
|
||||||
|
2024 |
2023 |
2024 |
2023 |
||||
|
|
|
|
|
||||
Closing number of total employees (including directors) |
11,668 |
|
11,539 |
|
11,668 |
|
11,539 |
|
Average operational employees |
10,541 |
|
10,606 |
|
10,456 |
|
10,461 |
|
|
|
|
|
|
||||
Top 10 customers % |
34 |
% |
34 |
% |
36 |
% |
34 |
% |
Number of clients with > (rolling 12 months) |
141 |
|
150 |
|
141 |
|
150 |
|
|
|
|
|
|
||||
Geographic split of revenue % |
|
|
|
|
||||
|
39 |
% |
31 |
% |
39 |
% |
31 |
% |
|
24 |
% |
25 |
% |
24 |
% |
26 |
% |
|
32 |
% |
35 |
% |
32 |
% |
34 |
% |
Rest of World (RoW) |
5 |
% |
9 |
% |
5 |
% |
9 |
% |
|
|
|
|
|
||||
Industry vertical split of revenue % |
|
|
|
|
||||
Payments |
19 |
% |
27 |
% |
19 |
% |
26 |
% |
Banking and Capital Markets |
18 |
% |
14 |
% |
19 |
% |
14 |
% |
Insurance |
9 |
% |
8 |
% |
9 |
% |
8 |
% |
TMT |
20 |
% |
23 |
% |
19 |
% |
23 |
% |
Mobility |
9 |
% |
11 |
% |
9 |
% |
11 |
% |
Healthcare |
12 |
% |
4 |
% |
12 |
% |
4 |
% |
Other |
13 |
% |
13 |
% |
13 |
% |
14 |
% |
FOOTNOTES
(1) Restated to include the effect of revisions arising from provisional to final acquisition accounting for DEK and Mudbath.
(2) The presentation of the Consolidated Statement of Cash Flows has been changed to separately present the repayment of lease interest from the total repayments of lease liabilities.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250219465522/en/
INVESTOR CONTACT:
Endava plc
Laurence Madsen, Head of Investor Relations
Investors@endava.com
Source: Endava plc
FAQ
What is the size of Endava's share repurchase program announced in Q2 FY2025?
How much did Endava's revenue grow in Q2 FY2025?
What is Endava's revenue guidance for Q3 FY2025?
How many clients did Endava have with over £1 million in revenue as of December 2024?
What was DAVA's geographical revenue distribution in Q2 FY2025?
