Porta Communications Plc Preliminary Results

24/05/2016

Preliminary results for the year ended 31 December 2015

Porta Communications Plc Preliminary Results

Porta Communications Plc

("Porta" or "the Company" or "the Group")

Financial Highlights 

 

Year to 31 Dec 2015

£

Year to 31 Dec 2014

£

Revenue

34,093,005

23,273,668

Gross profit

26,948,905

19,405,329

EBITDA

1,071,612

195,970

Headline EBITDA[1]

2,606,859

2,056,278

Headline EBITDA margin[2]

9.7%

10.6%

Headline profit before tax[3]

829,291

954,620

 

 

 

Highlights

  • Gross profit (fee income) up 39%
  • Organic growth in gross profit of 14% against a low single figure sector average
  • Reported EBITDA after all costs up 447%
  • Headline EBITDA 27% higher
  • Number of clients up by 231 to 836 in the year
  • Positive operating cash flow of £1.3m compared with negative £3.4m in 2014
  • Renewed debt arrangements

Outlook

  • Trading ahead of budget in first quarter of 2016
  • Organic growth expected to comfortably outperform sector in 2016
  • Exceptional costs expected to be significantly lower in the current year
  • Further senior hires planned 

Commenting on the results, David Wright, Chief Executive of Porta, said:

“The strong momentum shown in the first half of 2015 continued throughout the year with gross profit (fee income) nearly 40 percent higher and organic growth at 14 percent - considerably higher than the sector average of low single figures.  This strong trading performance together with a substantial reduction in exceptional costs has left reported EBITDA, after all costs, nearly 5.5 times higher than 2014.  More importantly, operating cash flow was £1.3m, the first positive contribution since the formation of the Group, compared with a £3.4m negative figure in 2014.

“The current year has started well and the Group is running ahead of budget for the first quarter.  New business throughout the whole of Newgate has been buoyant, although in the UK there has been some slowdown in project work ahead of the EU referendum.

“The Board remain confident that organic growth in fee income will remain strong, particularly as the planned recruitment of a number of high quality executives gains momentum, although these inevitably will have some impact on the bottom line in the short term.”


 [1] Headline EBITDA excludes start-up losses, acquisition and restructuring costs, exceptional legal and professional costs, share based payments, gain on acquisition and non-recurring property costs. From 1 January 2015 management took a decision  to no longer treat bad debt as an exceptional cost and therefore bad debt is ignored for the 2014 comparative period.

[2] Headline EBITDA margin is headline EBITDA as a percentage of gross profit

[3] Headline profit before tax is after adding back exceptional costs and amortisation of acquired intangibles 


 

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