Interim Results for the six months ended 30 September 2017 November 2017 The content of this document may not be disclosed to third parties without prior consent from Alpha FMC 1 STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL The content of this document may not be disclosed to third parties without prior consent from Alpha FMC
Presentation team Euan Fraser Stuart McNulty Maria Stricker TBU UK Chief Executive Officer Chief Financial Officer Chief Executive Officer • • • Has led Alpha as CEO from UK CEO from 2015 Joined Alpha as CFO in May 2013 and during this period the 2017 • Has led the sale and delivery of business has increased many of Alpha’s most • 15 years of experience across EBITDA 4-fold and been significant programmes of work commercial finance, strategy, through two successful private infrastructure, international tax • Experienced across all key equity transactions and legal functions areas of the asset • Alpha UK CEO from 2011 to • management value chain Qualified as a chartered 2015 accountant with KPMG • Joined Alpha in 2007 from JP • Over 20 years financial • Morgan Investment Bank Whilst at KPMG, worked services experience in both across several departments • Prior to this worked within consulting and industry at including transaction services, Accenture’s Capital Markets Merrill Lynch strategy, business modeling Practice • Qualified as a Chartered and audit Accountant with KPMG STRICTLY CONFIDENTIAL The content of this document may not be disclosed to third parties without prior consent from Alpha FMC 2
Agenda Introduction & Highlights 3 STRICTLY CONFIDENTIAL The content of this document may not be disclosed to third parties without prior consent from Alpha FMC
Introduction & Highlights Financial Highlights H1 to 30 September 2017 Group revenue increased by 50% to £28.7 million (H1 2016/17: £19.1 million) Group Revenue Continued growth in all core markets growth of 50% Strong contributions from all Group business practices Gross profit up 59% to £10.5 million (H1 2016/17: £6.6 million) Adjusted EBITDA Group adjusted EBITDA increased by 71% to £5.8 million increase of 71% (H1 2016/17: £3.4 million) Uninterrupted growth during and following the IPO process Following the IPO, net debt has been entirely paid down, leaving a clean balance sheet (30 September 2017: £84.7 million) Interim Dividend of The Board has declared a 1.48p interim dividend for H1 2017/18 1.48p Initial dividend in line with policy of 50% pay-out ratio 4 STRICTLY CONFIDENTIAL The content of this document may not be disclosed to third parties without prior consent from Alpha FMC
Introduction & Highlights Operational Highlights H1 to 30 September 2017 Ongoing investment in hiring the highest calibre people Continued Promotion of two Directors and hiring of two Directors strengthening of global teams Number of consultants incl. contractors increased by 33% to 286 (H1 2016/17: 215) Alpha Switzerland office launched in Geneva Geographic footprint of group Alpha Singapore office launched extended Larger office space secured in Luxembourg and Paris A comprehensive range of services reflecting client demand Investment in Acquisition of TrackTwo GmbH completed capabilities to expand offering New Alpha Digital practice launched 5 STRICTLY CONFIDENTIAL The content of this document may not be disclosed to third parties without prior consent from Alpha FMC
Agenda Financial Review 6 STRICTLY CONFIDENTIAL The content of this document may not be disclosed to third parties without prior consent from Alpha FMC
Financial Review Group Income Statement For the period 1 April 2017 to 30 September 2017 Key highlights: • Strong growth in Group H1 2017/18 H1 2016/17 Unaudited interim results % Change (£’000) (£’000) Revenue and Adjusted EBITDA vs H1 2016/17 Revenue 28,746 19,066 50% • Full benefit to revenues of Cost of Sales (18,254) (12,505) growth in number of consultants Gross Profit 10,492 6,561 59% to be seen in H2 2017/18 Administration Expenses (7,495) (4,352) • The Group remains highly cash generative: the vast majority of Operating Profit 2,997 2,209 36% projects are invoiced monthly in full on a time and materials basis + Depreciation (143) (125) • Interim dividend of 1.48p, in line + Amortisation (1,115) (1,066) with policy of paying 50% of + Exceptional Items (1,583) - post-tax profits to shareholders each year Adjusted EBITDA 5,838 3,400 71% • Exceptional items relate Interim Dividend per Share 1.48p - - primarily to costs associated with the IPO and the restructuring of the US team 7 STRICTLY CONFIDENTIAL The content of this document may not be disclosed to third parties without prior consent from Alpha FMC
Financial Review Geographic Split of Revenues For the period 1 April 2017 to 30 September 2017 Key highlights: • UK continues to constitute the H1 2017/18 H1 2016/17 Unaudited interim results % Change (£’000) (£’000) Group’s largest geography • Continued growth in all core UK 17,759 12,750 39% geographic markets • European expansion Europe 6,750 4,380 55% strengthened by new Alpha office in Geneva and acquisition of TrackTwo GmbH (Germany) USA 3,840 1,936 100% • US Leadership team restructured during H1 2017/18, Asia 396 - - together with execution of successful secondment scheme • First Alpha office opened in Asia, with a core team fully deployed from Singapore 8 STRICTLY CONFIDENTIAL The content of this document may not be disclosed to third parties without prior consent from Alpha FMC
Financial Review Group Balance Sheet For the period 1 April 2017 to 30 September 2017 Key highlights: • Historic private equity balance H1 2017/18 H1 2016/17 Unaudited interim results (£’000) (£’000) sheet structure dominated by external and shareholder debt Non-current assets 76,882 76,323 • Group had net debt of £84.7m Current assets 22,647 15,968 as at 30 September 2017; and Total assets 99,529 92,291 interest expenses on borrowings totalled £3.9m for H1 2017/18 Non-current liabilities 94,026 89,540 • In October 2017, proceeds from Current liabilities 11,451 7,003 the IPO were used to pay down Total liabilities 105,477 96,543 all debt and, going forward, the unleveraged Group will no Total equity (5,948) (4,252) longer incur these expenses Total equity and liabilities 99,529 92,291 9 STRICTLY CONFIDENTIAL The content of this document may not be disclosed to third parties without prior consent from Alpha FMC
Financial Review Group Cash Flow Statement For the period 1 April 2017 to 30 September 2017 Key highlights: • Following the IPO, and H1 2017/18 H1 2016/17 Unaudited interim results (£’000) (£’000) repayment of Group debt, a new three-year revolving £5m credit Cash from operating activities 4,253 3,401 facility has been established Working capital adjustments (3,463) (2,182) • This facility, and the Group’s strong cash generation, strongly Taxes paid (691) (458) equip the Group for future working capital requirements Net cash from 99 761 operating activities Net cash used in (2,174) (95) investing activities Net Cash used in (1,547) (1,530) financing activities Net decrease in cash (3,622) (864) and cash equivalents Cash & cash equivalents 4,508 5,900 at end of period 10 STRICTLY CONFIDENTIAL The content of this document may not be disclosed to third parties without prior consent from Alpha FMC
Agenda Operational Review 11 STRICTLY CONFIDENTIAL The content of this document may not be disclosed to third parties without prior consent from Alpha FMC
Operational Review Overview of Alpha’s Global Footprint Existing offices Potential future locations Launch of Alpha Switzerland office in Geneva New York An office in four out of five of the top European markets Boston Edinburgh The Hague US offers most significant London opportunity for expansion Luxembourg Paris Broad range of clients and Hong Kong projects building in US Geneva Launch of Alpha Singapore Zurich office Opportunities for further Frankfurt geographical extension Singapore STRICTLY CONFIDENTIAL The content of this document may not be disclosed to third parties without prior consent from Alpha FMC 12
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