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Endava Announces Third Quarter Fiscal Year 2019 Results
Q3 FY2019
24.7% Year on Year Revenue Growth to £73.1 million
23.2% Revenue Growth at Constant Currency
IFRS diluted EPS £0.11 compared to £0.08 in the prior year
comparative period
Adjusted diluted EPS £0.19 compared to £0.13 in the prior year
comparative period
LONDON–(BUSINESS WIRE)–Endava plc (NYSE: DAVA) (“Endava” or the “Company”) a global
provider of digital transformation, agile development and intelligent
automation services, today announced results for the three months ended
March 31, 2019, the third quarter of its 2019 fiscal year (“Q3 FY2019”).
“Endava continues to deliver strong results and I am pleased with our
performance. Our revenue for Q3 FY2019 was £73.1 million, an impressive
increase of 24.7% Year on Year on a reported basis from £58.6 million in
the same quarter in the prior year. We continue to expand in all of our
geographies and industry verticals.” said John Cotterell, Endava’s CEO.
FINANCIAL HIGHLIGHTS:
-
Revenue for Q3 FY2019 was £73.1 million, an increase of 24.7% compared
to £58.6 million in the same period in the prior year. -
Revenue growth rate at constant currency (a non-IFRS
measure) was 23.2% for Q3 FY2019 compared to 39.6% in the same period
in the prior year. -
Profit before tax for Q3 FY2019 was £7.6 million compared to £5.5
million in the same period in the prior year, or 10.4% of revenue
compared to 9.4% in the same period in the prior year. -
Adjusted profit before tax (a non-IFRS measure) for Q3 FY2019 was
£13.2 million compared to £8.5 million in the same period in the prior
year, or 18.1% of revenue compared to 14.5% in the same period in the
prior year. -
Profit for the period was £6.3 million in Q3 FY2019, resulting in a
diluted EPS of £0.11, compared to profit for the period of £4.2
million and diluted EPS of £0.08 in the same period in the prior year. -
Adjusted profit for the period (a non-IFRS measure) was £10.6 million
in Q3 FY2019, resulting in adjusted diluted EPS (a non-IFRS measure)
of £0.19 compared to adjusted profit for the period of £6.9 million
and adjusted diluted EPS of £0.13 in the same period in the prior year. -
Net cash from operating activities was £12.6 million in Q3 FY2019
compared to £7.9 million in the same period in the prior year. -
Free cash flow (a non-IFRS measure) was £11.4 million in Q3 FY2019
compared to £7.2 million in the same period in the prior year. -
At March 31, 2019, Endava had cash and cash equivalents of £59.3
million, compared to £15.0 million at June 30, 2018. Net cash at March
31, 2019 was £59.3 million compared to net borrowing of £4.7 million
at June 30, 2018.
OTHER METRICS:
-
Headcount reached 5,573 at March 31, 2019, with 5,012 average
operational employees in Q3 FY2019, compared to a headcount of 4,700
at March 31, 2018 and 4,246 average operational employees in the third
quarter of the prior year. -
Number of clients with over £1 million in spend grew to 67 on a
rolling twelve months basis at March 31, 2019 compared to 42 at March
31, 2018. -
Top 10 clients accounted for 40% of revenue in Q3 FY2019, unchanged
from the same period in the prior year. -
By geographic region, 27% of revenue was generated in North America,
27% was generated in Europe and 46% was generated in the United
Kingdom in Q3 FY2019. This compares to 25% in North America, 31% in
Europe and 44% in the United Kingdom in the same period in the prior
year. -
By industry vertical, 53% of revenue was generated from Payments and
Financial Services, 28% from TMT and 19% from Other. This compares to
54% Payments and Financial Services, 29% TMT and 17% Other in the same
period in the prior year.
OUTLOOK:
For Q4 FY2019:
We expect revenues will be in the range £75m to £76m, representing
constant currency growth of between 21% and 22%. We expect adjusted
diluted EPS to be in the range of £0.17 to £0.18 per share.
Full Fiscal Year 2019:
We expect revenues will be in the range £286m to £287m, representing
constant currency growth of 31%. We expect adjusted diluted EPS to be in
the range of £0.73 to £0.74 per share.
Endava is not able, at this time, to provide an outlook for IFRS diluted
EPS for Q4 FY2019 or FY2019 because of the unreasonable effort of
estimating certain items that are excluded from adjusted diluted EPS,
including, for example, share-based compensation expense, amortisation
of acquired intangible assets and foreign currency exchange (gains)
losses, the effect of which may be significant.
CONFERENCE CALL DETAILS:
The Company will host a conference call at 8:00 am EST today, May 21,
2019, to review its Q3 FY2019 results. To participate in Endava’s Q3
FY19 earnings conference call, please dial in at least five minutes
prior to the scheduled start time (877) 683-6368 or (647) 689-5450 for
international participants, Conference ID 4226669.
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 Friday, June
7, 2019.
ABOUT ENDAVA PLC:
Endava is a leading next-generation technology services provider and
helps accelerate disruption by delivering rapid evolution to
enterprises. Using distributed enterprise agile at scale, Endava
collaborates with its clients, seamlessly integrating with their teams,
catalysing ideation and delivering robust solutions. Endava helps its
clients become digital, experience-driven businesses by assisting them
in their journey from idea generation to development and deployment of
products, platforms and solutions. It services clients in the following
industries: Payments and Financial Services, TMT, Consumer Products,
Retail, Logistics and Healthcare. Endava had 5,573 employees as of March
31, 2019 located in offices in North America and Western Europe and
delivery centres in Romania, Moldova, Bulgaria, Serbia, Macedonia,
Argentina, Uruguay, Venezuela, and Colombia.
NON-IFRS FINANCIAL INFORMATION:
To supplement Endava’s Consolidated Statements of Comprehensive Income,
Consolidated Balance Sheets and Consolidated Statements of Cash Flow
presented in accordance with IFRS, the Company uses non-IFRS measures of
certain components of financial performance. These measures include:
revenue growth rate at constant currency, adjusted profit before tax,
adjusted profit for the period, adjusted diluted EPS and free cash flow.
Revenue growth 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 rates in effect for the fiscal
quarter ended March 31, 2018 were used to convert revenue for the fiscal
quarter ended March 31, 2019 and the revenue for the comparable prior
period.
Adjusted profit before tax is defined as the Company’s profit before tax
adjusted to exclude
the impact of share-based compensation expense, amortisation of acquired
intangible assets, realized and unrealized foreign currency exchange
gains and losses, initial public offering expenses incurred,
Sarbanes-Oxley compliance readiness expenses, fair value movement of
contingent consideration, secondary offering expenses incurred and stamp
duty on transfer of shares (all of which are non-cash other than
realized foreign currency exchange gains and losses, initial public
offering expenses, Sarbanes-Oxley compliance readiness expenses,
secondary offering expenses incurred and stamp duty on transfer of
shares). Adjusted PBT margin is adjusted profit before tax as a
percentage of total revenue.
Adjusted profit for the period is defined as the Company’s profit for
the period adjusted to exclude the impact of share-based compensation
expense, amortisation of acquired intangible assets, realized and
unrealized foreign currency exchange gains and losses, initial public
offering expenses incurred, Sarbanes-Oxley compliance readiness
expenses, fair value movement of contingent consideration, secondary
offering expenses incurred and stamp duty on transfer of shares (all of
which are non-cash other than realized foreign currency exchange gains
and losses, initial public offering expenses, Sarbanes-Oxley compliance
readiness expenses, secondary offering expenses incurred and stamp duty
on transfer of shares) together with the tax impact of these adjustments.
Adjusted diluted EPS is defined as the Company’s profit for the period
adjusted to exclude the impact of share-based compensation expense,
amortisation of acquired intangible assets, realized and unrealized
foreign currency exchange gains and losses, initial public offering
expenses incurred, Sarbanes-Oxley compliance readiness expenses, fair
value movement of contingent consideration, secondary offering expenses
incurred and stamp duty on transfer of shares (all of which are non-cash
other than realized foreign currency exchange gains and losses, initial
public offering expenses, Sarbanes-Oxley compliance readiness expenses,
secondary offering expenses incurred and stamp duty on transfer of
shares), divided by weighted average number of shares outstanding –
diluted.
Free cash flow is the Company’s net cash from/(used in) operating
activities, plus grants received, less net purchases of non-current
assets (tangible and intangible).
In order for Endava’s investors to be better able to compare its current
period results with those of previous periods, the Company has shown a
reconciliation of IFRS to non-IFRS financial measures. 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.
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,” “outlook,” and other similar terms
and phrases. Such forward-looking statements include, but are not
limited to, the statements regarding our projected financial performance
for our fourth fiscal quarter and full-fiscal year 2019. 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: our ability to sustain our revenue growth rate in the
future; our ability to retain existing clients and attract new
clients, including our ability to increase revenue from existing clients
and diversify our revenue concentration; our ability to attract and
retain highly-skilled IT professionals at cost-effective rates; our
ability to penetrate new industry verticals and geographies and grow our
revenue in current industry verticals and geographies; our ability to
maintain favorable pricing and utilization rates; our ability to
successfully identify acquisition targets, consummate acquisitions and
successfully integrate acquired businesses and personnel; the effects of
increased competition as well as innovations by new and existing
competitors in our market; the size of our addressable market and market
trends; our ability to adapt to technological change and innovate
solutions for our clients; our plans for growth and future operations,
including our ability to manage our growth; our expectations of future
operating results or financial performance; our ability to effectively
manage our international operations, including our exposure to foreign
currency exchange rate fluctuations; and our future financial
performance, including trends in revenue, cost of sales, gross profit,
selling, general and administrative expenses, finance income and expense
and taxes, as well as other risks and uncertainties discussed in the
“Risk Factors” section of our Annual Report on Form 20-F filed with the
Securities and Exchange Commission on October 11, 2018 and the final
prospectus relating to our recent public offering filed with the
Securities and Exchange Commission pursuant to Rule 424(b)(4) on April
18, 2019.
In addition, the forward-looking statements included in this press
release represent our views and expectations as of the date hereof and
are based on information currently available to us. We anticipate
that subsequent events and developments may cause our views to change.
However, while we may elect to update these forward-looking statements
at some point in the future, we specifically disclaim any obligation to
do so except as required by law. These forward-looking statements should
not be relied upon as representing our views as of any date subsequent
to the date hereof.
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
||||||||||||
| Nine Months Ended March 31 | Three Months Ended March 31 | |||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||
| £’000 | £’000 | £’000 | £’000 | |||||||||
| REVENUE | 211,312 | 156,140 | 73,064 | 58,598 | ||||||||
| Cost of sales | ||||||||||||
| Direct cost of sales | (127,356) | (96,104) | (44,330) | (35,783) | ||||||||
| Allocated cost of sales | (11,050 | ) | (9,281 | ) | (3,745 | ) | (3,235 | ) | ||||
| Total cost of sales | (138,406 | ) | (105,385 | ) | (48,075 | ) | (39,018 | ) | ||||
| GROSS PROFIT | 72,906 | 50,755 | 24,989 | 19,580 | ||||||||
| Selling, general and administrative expenses | (48,609 | ) | (31,755 | ) | (17,601 | ) | (13,705 | ) | ||||
| OPERATING PROFIT | 24,297 | 19,000 | 7,388 | 5,875 | ||||||||
| Net finance (expense) / income | (4,644 | ) | (1,030 | ) | 216 | (370 | ) | |||||
| PROFIT BEFORE TAX | 19,653 | 17,970 | 7,604 | 5,505 | ||||||||
| Tax on profit on ordinary activities | (3,874) | (3,893) | (1,290) | (1,286) | ||||||||
|
PROFIT FOR THE PERIOD AND PROFIT ATTRIBUTABLE TO OWNERS OF THE PARENT |
15,779 | 14,077 | 6,314 | 4,219 | ||||||||
| Other comprehensive income | ||||||||||||
| Items that may be reclassified subsequently to profit or loss: | ||||||||||||
| Exchange differences on translating foreign operations | (2,365) | (1,108) | (3,027) | (1,363) | ||||||||
|
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF THE PARENT |
13,414 | 12,969 | 3,287 | 2,856 | ||||||||
| EARNINGS PER SHARE: | ||||||||||||
| Weighted average number of shares outstanding – Basic | 49,072,773 | 45,100,165 | 49,500,875 | 45,100,165 | ||||||||
| Weighted average number of shares outstanding – Diluted | 54,648,204 | 50,050,447 | 54,912,822 | 51,142,347 | ||||||||
| Basic EPS (£) | 0.32 | 0.31 | 0.13 | 0.09 | ||||||||
| Diluted EPS (£) | 0.29 | 0.28 | 0.11 | 0.08 | ||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||||
| March 31, 2019 | June 30, 2018 | March 31, 2018 | |||||||
| £’000 | £’000 | £’000 | |||||||
| ASSETS – NON-CURRENT | |||||||||
| Goodwill | 41,197 | 41,062 | 39,267 | ||||||
| Intangible assets | 28,800 | 30,787 | 30,051 | ||||||
| Property, plant and equipment | 9,359 | 8,584 | 8,350 | ||||||
| Deferred tax assets | 4,731 | 2,488 | 926 | ||||||
| TOTAL | 84,087 | 82,921 | 78,594 | ||||||
| ASSETS – CURRENT | |||||||||
| Inventories |
– |
16 | 57 | ||||||
| Trade and other receivables | 63,041 | 52,352 | 50,190 | ||||||
| Corporation tax receivable | 649 | 677 |
– |
||||||
| Cash and cash equivalents | 59,339 | 15,048 | 9,462 | ||||||
| TOTAL | 123,029 | 68,093 | 59,709 | ||||||
| TOTAL ASSETS | 207,116 | 151,014 | 138,303 | ||||||
| LIABILITIES – CURRENT | |||||||||
| Borrowings | 29 | 19,744 | 23,612 | ||||||
| Trade and other payables | 43,983 | 40,243 | 32,843 | ||||||
| Corporation tax payable | 2,045 | 1,488 | 644 | ||||||
| Contingent consideration | 1,211 | 5,259 | 4,947 | ||||||
| Deferred consideration | 1,516 | 4,401 | 2,851 | ||||||
| Other liabilities | 248 |
– |
– |
||||||
| TOTAL | 49,032 | 71,135 | 64,897 | ||||||
| LIABILITIES – NON CURRENT | |||||||||
| Borrowings | 1 | 20 | 34 | ||||||
| Contingent consideration |
– |
7,251 | 6,751 | ||||||
| Deferred consideration |
– |
– |
1,238 | ||||||
| Deferred tax liabilities | 2,380 | 2,832 | 2,621 | ||||||
| Other liabilities | 67 | 277 | 267 | ||||||
| TOTAL | 2,448 | 10,380 | 10,911 | ||||||
| EQUITY | |||||||||
| Share capital | 1,085 | 996 | 996 | ||||||
| Share premium | 16,451 | 2,678 | 2,678 | ||||||
| Merger relief reserve | 4,430 | 4,430 | 4,430 | ||||||
| Retained earnings | 133,219 | 59,260 | 52,959 | ||||||
| Other reserves | 2,692 | 4,410 | 3,707 | ||||||
| Investment in own shares | (2,241 | ) | (2,275 | ) | (2,275 | ) | |||
| TOTAL | 155,636 | 69,499 | 62,495 | ||||||
| TOTAL LIABILITIES AND EQUITY | 207,116 | 151,014 | 138,303 | ||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||
| Nine Months Ended | Three Months Ended | |||||||||||
| March 31 | March 31 | |||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||
| £’000 | £’000 | £’000 | £’000 | |||||||||
| OPERATING ACTIVITIES | ||||||||||||
| Profit for the period | 15,779 | 14,077 | 6,314 | 4,219 | ||||||||
| Income tax charge | 3,874 | 3,893 | 1,290 | 1,286 | ||||||||
| Non-cash adjustments | 18,270 | 4,453 | 4,965 | 1,781 | ||||||||
| Tax paid | (3,641 | ) | (3,688 | ) | (730 | ) | (1,414 | ) | ||||
| UK research and development credit received | 1,278 | 1,854 | 1,278 |
– |
||||||||
| Net changes in working capital | (11,271 | ) | (215 | ) | (493 | ) | 2,074 | |||||
| Net cash from operating activities | 24,289 | 20,374 | 12,624 | 7,946 | ||||||||
| INVESTING ACTIVITIES | ||||||||||||
| Purchase of non-current assets (tangibles and intangibles) | (5,153 | ) | (3,680 | ) | (1,189 | ) | (919 | ) | ||||
| Proceeds from disposal of non-current assets | 33 | 2 | 8 | 8 | ||||||||
| Acquisition of business / subsidiaries (net of cash acquired) | (3,142 | ) | (25,423 | ) | (3,142 | ) | (8,031 | ) | ||||
| Interest received | 286 | 30 | 160 | 7 | ||||||||
| Net cash used in investing activities | (7,976 | ) | (29,071 | ) | (4,163 | ) | (8,935 | ) | ||||
| FINANCING ACTIVITIES | ||||||||||||
| Proceeds from borrowings | 3,500 | 22,979 |
– |
– |
||||||||
| Repayment of borrowings | (23,538 | ) | (28,094 | ) | (12 | ) | (14,451 | ) | ||||
| Interest paid | (280 | ) | (413 | ) | (58 | ) | (210 | ) | ||||
| Grant received | 1,784 | 147 |
– |
147 | ||||||||
| Net proceeds from initial public offering | 44,828 |
– |
– |
– |
||||||||
| Issue of shares | 85 |
– |
85 |
– |
||||||||
| Net cash from financing activities | 26,379 | (5,381 | ) | 15 | (14,514 | ) | ||||||
| Net change in cash and cash equivalents | 42,692 | (14,078 | ) | 8,476 | (15,503 | ) | ||||||
| Cash and cash equivalents at the beginning of the period | 15,048 | 23,571 | 51,044 | 25,066 | ||||||||
| Exchange differences on cash and cash equivalents | 1,599 | (31 | ) | (181 | ) | (101 | ) | |||||
| Cash and cash equivalents at the end of the period | 59,339 | 9,462 | 59,339 | 9,462 | ||||||||
|
RECONCILIATION OF ADJUSTED FINANCIAL MEASURES TO COMPARABLE IFRS FINANCIAL MEASURES |
||||||||||||
|
RECONCILIATION OF REVENUE GROWTH RATE AT CONSTANT CURRENCY TO REVENUE GROWTH RATE AS REPORTED UNDER IFRS: |
||||||||||||
| Nine Months ended | Three Months ended | |||||||||||
| March 31 | March 31 | |||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||
| REVENUE GROWTH RATE AT CONSTANT CURRENCY | 34.4 | % | 34.6 | % | 23.2 | % | 39.6 | % | ||||
| Foreign exchange rates impact | 0.9 | % | (0.4 | %) | 1.5 | % | (3.0 | %) | ||||
| REVENUE GROWTH RATE AS REPORTED UNDER IFRS | 35.3 | % | 34.2 | % | 24.7 | % | 36.6 | % | ||||
|
RECONCILIATION OF ADJUSTED PROFIT BEFORE TAX AND ADJUSTED |
||||||||||||
| Nine Months Ended | Three Months Ended | |||||||||||
| March 31 | Mar 31 | |||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||
| £’000 | £’000 | £’000 | £’000 | |||||||||
| PROFIT BEFORE TAX | 19,653 | 17,970 | 7,604 | 5,505 | ||||||||
| Adjustments: | ||||||||||||
| Share-based compensation expense | 8,690 | 1,026 | 3,680 | 306 | ||||||||
| Amortisation of acquired intangible assets | 2,609 | 1,804 | 857 | 844 | ||||||||
| Foreign currency exchange (gains) losses, net | (1,262 | ) | 545 | (121 | ) | 64 | ||||||
| Initial public offering expenses incurred | 1,055 | 2,472 |
– |
1,787 | ||||||||
| Sarbanes-Oxley compliance readiness expenses incurred | 1,227 |
– |
529 |
– |
||||||||
| Fair value movement of contingent consideration | 5,805 |
– |
– |
– |
||||||||
| Secondary offering expenses incurred | 306 |
– |
306 |
– |
||||||||
| Stamp duty on transfer of shares | 385 |
– |
385 |
– |
||||||||
| Total adjustments | 18,815 | 5,847 | 5,636 | 3,001 | ||||||||
| ADJUSTED PROFIT BEFORE TAX | 38,468 | 23,817 | 13,240 | 8,506 | ||||||||
| PROFIT FOR THE PERIOD | 15,779 | 14,077 | 6,314 | 4,219 | ||||||||
| Adjustments: | ||||||||||||
| Adjustments to profit before tax | 18,815 | 5,847 | 5,636 | 3,001 | ||||||||
| Tax impact of adjustments | (3,661 | ) | (745 | ) | (1,312 | ) | (359 | ) | ||||
| ADJUSTED PROFIT FOR THE PERIOD | 30,933 | 19,179 | 10,638 | 6,861 | ||||||||
| Diluted EPS (£) | 0.29 | 0.28 | 0.11 | 0.08 | ||||||||
| Adjusted diluted EPS (£) | 0.57 | 0.38 | 0.19 | 0.13 | ||||||||
|
RECONCILIATION OF NET CASH FROM OPERATING ACTIVITIES TO FREE |
||||||||||||
| Nine Months Ended | Three Months Ended | |||||||||||
| March 31 | March 31 | |||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||
| £’000 | £’000 | £’000 | £’000 | |||||||||
| Net cash from operating activities | 24,289 | 20,374 | 12,624 | 7,946 | ||||||||
| Adjustments: | ||||||||||||
| Grant received | 1,784 | 147 |
– |
147 | ||||||||
| Net purchases of non-current assets (tangible and intangible) | (5,120 | ) | (3,678 | ) | (1,181 | ) | (911 | ) | ||||
| Free cash flow | 20,953 | 16,843 | 11,443 | 7,182 | ||||||||
| SUPPLEMENTARY INFORMATION | |||||||||||
| SHARE-BASED COMPENSATION EXPENSE | |||||||||||
| Nine Months Ended | Three Months Ended | ||||||||||
| March 31 | March 31 | ||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||
| £’000 | £’000 | £’000 | £’000 | ||||||||
| Direct cost of sales | 3,587 | 686 | 1,648 | 205 | |||||||
| Selling, general and administrative expenses | 5,103 | 340 | 2,032 | 101 | |||||||
| Total | 8,690 | 1,026 | 3,680 | 306 | |||||||
|
DEPRECIATION AND AMORTIZATION |
|||||||||||
| Nine Months Ended | Three Months Ended | ||||||||||
| March 31 | March 31 | ||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||
| £’000 | £’000 | £’000 | £’000 | ||||||||
| Direct cost of sales | 2,870 | 2,371 | 1,011 | 821 | |||||||
| Selling, general and administrative expenses | 3,030 | 2,081 | 972 | 944 | |||||||
| Total | 5,900 | 4,452 | 1,983 | 1,765 | |||||||
|
EMPLOYEES, TOP 10 CUSTOMERS and REVENUE SPLIT |
||||||||||||
| Nine Months Ended | Three Months Ended | |||||||||||
| March 31 | March 31 | |||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||
| Closing number of total employees | 5,573 | 4,700 | 5,573 | 4,700 | ||||||||
| Average operational employees | 4,821 | 3,829 | 5,012 | 4,246 | ||||||||
| Top 10 customers % | 36 | % | 43 | % | 40 | % | 40 | % | ||||
|
Number of clients with > £1m of revenue (rolling 12 months) |
67 | 42 | 67 | 42 | ||||||||
| Geographic split of revenue % | ||||||||||||
| North America | 27 | % | 19 | % | 27 | % | 25 | % | ||||
| Europe | 28 | % | 35 | % | 27 | % | 31 | % | ||||
| UK | 45 | % | 46 | % | 46 | % | 44 | % | ||||
| Industry vertical split of revenue % | ||||||||||||
| Payments and Financial Services | 53 | % | 58 | % | 53 | % | 54 | % | ||||
| TMT | 27 | % | 28 | % | 28 | % | 29 | % | ||||
| Other | 20 | % | 14 | % | 19 | % | 17 | % | ||||
Contacts
INVESTOR CONTACT:
Endava Plc
Laurence Madsen, Investor
Relations Manager
Investors@endava.com
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Innocan
Innocan Pharma Submits Investigational New Animal Drug Application to FDA’s Veterinary Center
HERZLIYA, Israel and CALGARY, AB, July 26, 2024 /PRNewswire/ — Innocan Pharma Corporation (CSE: INNO) (FSE: IP4) (OTCQB: INNPF) (“Innocan” or the “Company”), a pioneer in the pharmaceutical and biotechnology industries, is pleased to announce that the FDA’s Center for Veterinary Medicine (CVM) has granted the Company a sponsor fee waiver and assigned an Investigational New Animal Drug (INAD) number for its LPT-CBD (Liposome Platform Technology-Cannabidiol) product. This represents a significant step for the Company, as an INAD designation facilitates correspondence and data exchange with CVM to support LPT-CBD development as a new veterinary drug.
The Company further announced that following the assessment of LPT-CBD’s scientific package, the CVM recognized Innocan’s contribution to pursuing innovative animal drug products and technology and granted the company a sponsor fee waiver for fiscal year 2024.
Innocan’s LPT-CBD is a proprietary drug delivery platform designed to provide prolonged-release CBD for chronic pain and well-being management in animals. Over the past year, repeated administration of LPT-CBD in dogs and other animals has demonstrated both efficacy and tolerability, providing sufficient evidence for the INAD application.
“We are thrilled by CVM’s response,” said Prof. Chezy Barenholz, CSO of Innocan Pharma. “The granted INAD will allow us to advance the investigational studies of LPT-CBD and share knowledge to support future discussions with CVM on LPT-CBD’s development plan. Moreover, the fee waiver, granted by CVM, supports our development and pursuit of innovative animal drug products and technology, further validating our approach and potential impact in veterinary medicine.”
Dr. Eyal Kalo, R&D Director at Innocan, added, “LPT-CBD is a unique technology that has proven itself worthy of the INAD fee waiver granted by CVM. This will streamline our efforts to deliver a unique solution for chronic pain management to the animal market.”
About Innocan Pharma:
Innocan is a pharmaceutical tech company that operates under two main segments: Pharmaceuticals and Consumer Wellness. In the Pharmaceuticals segment, Innocan focuses on developing innovative drug delivery platform technologies comprises with cannabinoids science, to treat various conditions to improve patients’ quality of life. This segment involves two drug delivery technologies: (i) LPT CBD-loaded liposome platform facilitating exact dosing and the prolonged and controlled release of CBD into the blood stream. The LPT delivery platform research is in the preclinical trial phase for two indications: Epilepsy and Pain Management. In the Consumer Wellness segment, Innocan develops and markets a wide portfolio of innovative and high-performance self-care products to promote a healthier lifestyle. Under this segment Innocan has established a Joint Venture by the name of BI Sky Global Ltd. that focuses developing on advanced targeted online sales. https://innocanpharma.com/
Contact Information:
For Innocan Pharma Corporation:
Iris Bincovich, CEO
+1 5162104025
+972-54-3012842
+442037699377
info@innocanpharma.com
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Caution Regarding Forward-Looking Information
Certain information set forth in this news release, including, without limitation, the Company’s plans for human trials of its LPT-CBD platform, is forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond Innocan’s control. . The forward-looking information contained in this news release is based on certain key expectations and assumptions made by Innocan, including expectations and assumptions concerning the anticipated benefits of the products, satisfaction of regulatory requirements in various jurisdictions and satisfactory completion of production and distribution arrangements.
Forward-looking information is subject to various risks and uncertainties that could cause actual results and experience to differ materially from the anticipated results or expectations expressed in this news release. The key risks and uncertainties include but are not limited to: global and local (national) economic, political, market and business conditions; governmental and regulatory requirements and actions by governmental authorities; and potential disruption of relationships with suppliers, manufacturers, customers, business partners and competitors. There are also risks that are inherent in the nature of product distribution, including import/export matters and the failure to obtain any required regulatory and other approvals (or to do so in a timely manner). The anticipated timeline for entry to markets may change for a number of reasons, including the inability to secure necessary regulatory requirements, or the need for additional time to conclude and/or satisfy the manufacturing and distribution arrangements. As a result of the foregoing, readers should not place undue reliance on the forward-looking information contained in this news release. A comprehensive discussion of other risks that impact Innocan can be found in Innocan’s public reports and filings which are available under Innocan’s profile at www.sedarplus.ca.
Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. Innocan does not undertake to update, correct or revise any forward-looking information as a result of any new information, future events or otherwise, except as may be required by applicable law.
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Cannabis
Verano Announces the Opening of Zen Leaf Fairless Hills, the Company’s Newest Affiliated Dispensary in Pennsylvania, in Prime New Location
- Zen Leaf Fairless Hills, the Company’s newest affiliated dispensary in Pennsylvania, relocated from its former home in Chester to 203 Lincoln Highway, a busy thoroughfare with daily traffic of over 17,000 vehicles per day1
- As the first medical cannabis dispensary in the city, Zen Leaf Fairless Hills will offer an elevated experience for area patients, including increased convenience and accessibility with numerous point-of-sale stations and kiosks for seamless in-store browsing and ordering
- Verano’s active operations span 13 states, comprised of 142 dispensaries and 13 cultivation and processing facilities with more than 1 million square feet of cultivation capacity
CHICAGO, July 26, 2024 (GLOBE NEWSWIRE) — Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF) (“Verano” or the “Company”), a leading multi-state cannabis company, today announced the opening of Zen Leaf Fairless Hills in Pennsylvania on Friday, July 26th, following a ceremonial ribbon cutting at 11 a.m. local time. Zen Leaf Fairless Hills is located at 203 Lincoln Highway and will be open Monday through Saturday from 9 a.m. to 8 p.m. and Sunday from 10 a.m. to 6 p.m. local time.
The dispensary is located in Bucks County, the fourth largest county in the Commonwealth with a total population of over 630,0002 residents. To increase accessibility and convenience, Zen Leaf Fairless Hills features large in-store kiosks and numerous point-of-sale stations to enhance the browsing and ordering experience for patients. To celebrate the grand opening of Zen Leaf Fairless Hills and following a ceremonial ribbon cutting, patients will be greeted with complimentary deals and doorbusters on featured branded products.
“We are excited to bring the Zen Leaf experience to local patients in Fairless Hills, where our talented team members will continue to deliver hospitality-driven care and top-quality products for local patients,” said George Archos, Verano Founder and Chief Executive Officer. “As the Pennsylvania medical cannabis patient population continues to grow, we are grateful for the opportunity to deepen our roots in Bucks County at our newest Zen Leaf location in the Commonwealth, and look forward to providing a warm and welcoming environment for current and future patients.”
Zen Leaf Fairless Hills adds another convenient outlet for Philadelphia area patients, and solidifies Verano’s footprint in the state as one of the Company’s 18 affiliated Pennsylvania dispensaries. Verano’s Pennsylvania operations also include a state-of-the-art 62,000 square foot cultivation and processing facility in Chester, where the Company produces its signature Verano Reserve flower and Troches, concentrates and vapes; (the) Essence and Savvy flower and extracts; and Avexia RSO cannabis oil and topicals. For additional convenience and accessibility, patients can choose to order ahead at ZenLeafDispensaries.com for express in-store pickup.
About Verano
Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF), one of the U.S. cannabis industry’s leading companies based on historical revenue, geographic scope and brand performance, is a vertically integrated, multi-state operator embracing a mission of saying Yes to plant progress and the bold exploration of cannabis. Verano provides a superior cannabis shopping experience in medical and adult use markets under the Zen Leaf™ and MÜV™ dispensary banners, including Cabbage Club™, an innovative annual membership program offering exclusive benefits for cannabis consumers. Verano produces a comprehensive suite of high-quality, regulated cannabis products sold under its diverse portfolio of trusted consumer brands including Verano™, (the) Essence™, MÜV™, Savvy™, BITS™, Encore™, and Avexia™. Verano’s active operations span 13 U.S. states, comprised of 13 production facilities with over 1,000,000 square feet of cultivation capacity. Learn more at Verano.com.
Contacts:
Media
Verano
Steve Mazeika
VP, Communications
Steve.Mazeika@verano.com
Investors
Verano
Julianna Paterra, CFA
VP, Investor Relations
Julianna.Paterra@verano.com
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans, strategies, or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “future”, “scheduled”, “estimates”, “forecasts”, “projects,” “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. Forward-looking statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking statements herein, including, without limitation, the risk factors described in the Company’s annual report on Form 10-K for the year ended December 31, 2023, its quarterly report on Form 10-Q for the quarter ended March 31, 2024 and any subsequent quarterly reports on Form 10-Q, in each case, filed with the U.S. Securities and Exchange Commission at www.sec.gov. The Company makes no assurances and cannot predict the outcome of all or any part of the on-going litigation with Goodness Growth referenced in this press release, including whether the Company will prevail on its Notice of Application and its counterclaim, or whether Goodness Growth will prevail on its claim for damages against the Company. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information or forward-looking statements that are contained or referenced herein, except as may be required in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice regarding forward-looking information and statements.
###
1 Pennsylvania Department of Transportation
2 United States Census Bureau
Cannabis
Unlocking New Horizons in Health: TNR, The Niche Research Reveals the Transformative Power of Minor Cannabinoids
Wilmington, Delaware, July 25, 2024 (GLOBE NEWSWIRE) — Minor cannabinoids refer to the lesser-known compounds found in the cannabis plant, distinct from the well-known THC (tetrahydrocannabinol) and CBD (cannabidiol). While THC and CBD dominate the market, minor cannabinoids such as CBG (cannabigerol), CBC (cannabichromene), and CBN (cannabinol) are gaining attention for their potential therapeutic benefits. These compounds are extracted from both marijuana and hemp plants, with varying legal restrictions depending on their THC content. The minor cannabinoids market is poised for significant growth, driven by increasing consumer awareness and demand for alternative health and wellness products. As regulatory environments around cannabis products evolve, companies are exploring the potential of minor cannabinoids in various applications, including pharmaceuticals, nutraceuticals, cosmetics, and food and beverages.
Minor cannabinoids are being researched for their potential therapeutic effects, including anti-inflammatory, analgesic, and neuroprotective properties. This versatility facilitates product diversification in various industries. Companies are investing in research and development to create novel formulations and delivery methods for minor cannabinoids. This includes nano-emulsions, encapsulation technologies, and controlled-release systems to enhance bioavailability and efficacy. For example, in January 2022, CBDA + CBGA Tincture a new product was launched by Hometown Hero CBD. This 30ml tincture contains 600mg each of CBGA, CBDA, CBG, and CBD. Derived from hemp, the cannabinoids in this tincture comply with legal requirements across all 50 states in the USA. There is an increasing consumer preference for natural as well as plant-based remedies, which in turn is driving the demand for cannabinoid-infused products. This trend is particularly strong among younger demographics seeking alternatives to traditional pharmaceuticals. Evolving regulatory frameworks, particularly in regions like North America and Europe, are creating opportunities for legal market expansion. Regulatory clarity is crucial for market participants to navigate compliance and market entry.
Global Minor Cannabinoids Market: Key Datapoints
|
Market Value in 2023 |
US$ 17.8 Bn |
|
Market Value Forecast by 2034 |
US$ 42.3 Bn |
|
Growth Rate
|
8.2% |
|
Historical Data
|
2016 – 2022 |
|
Base Year
|
2023 |
|
Forecast Data
|
2024 – 2034 |
Increasing consumer interest in health and wellness products, coupled with the perceived therapeutic benefits of cannabinoids, is a major driver of market growth. Progressive cannabis legalization in various parts of the world, including the United States and parts of Europe, is expanding the addressable market for minor cannabinoids. Significant investments in research and development by pharmaceutical and biotechnology companies are accelerating product innovation and clinical trials. The market remains fragmented with opportunities for new entrants and niche players to introduce specialized products catering to specific consumer needs.
The COVID-19 pandemic initially disrupted supply chains and retail channels for minor cannabinoids products. However, the crisis also underscored the importance of health and wellness, leading to increased interest in natural remedies, including cannabinoids. As economies recover, the market is expected to rebound stronger.
The geopolitical tensions, such as the Russia-Ukraine conflict, have also affected global markets, including the minor cannabinoids sector. Fluctuating currency values, supply chain disruptions, and geopolitical uncertainty have impacted production and distribution channels. However, the long-term impact will depend on geopolitical developments and their influence on global trade and regulatory environments.
The minor cannabinoids market presents significant opportunities for growth and innovation, driven by evolving consumer preferences, regulatory advancements, and expanding research initiatives. Companies that can navigate regulatory complexities, invest in research and development, and respond to shifting consumer trends are well-positioned to capitalize on this emerging market. As the market matures, collaboration across sectors and regions will be crucial in unlocking the full potential of minor cannabinoids in various industries worldwide.
Global Minor Cannabinoids Market: Key Takeaways of the Report
- Cannabigerol (CBG) segment by product type is expected to grow at a CAGR of 6.7% in the minor cannabinoids market due to increasing research highlighting its potential therapeutic benefits, including anti-inflammatory, antimicrobial, and neuroprotective properties. As consumer awareness grows and regulatory environments become more favorable, there is heightened interest in CBG-based products for their diverse health applications, ranging from skincare to pharmaceutical formulations, driving sustained market demand and expansion.
- Pharmaceutical segment by application, leads the minor cannabinoids market with a significant revenue share of 35.8% owing to growing recognition of cannabinoids’ potential in therapeutic applications. Cannabinoids like CBD, CBG, and others show promise in treating conditions such as epilepsy, chronic pain, and anxiety disorders, backed by increasing clinical research and favorable regulatory developments. Pharmaceutical companies are investing heavily in cannabinoid-based drug development, driving market growth as they seek to capitalize on these compounds’ efficacy and market potential in addressing unmet medical needs.
- In 2023, Latin America is anticipated as fastest growing region in the global minor cannabinoids market due to evolving regulatory landscapes favoring cannabis legalization and cultivation. This shift is fostering a burgeoning industry infrastructure for cannabis extraction and product development. Additionally, increasing consumer acceptance of cannabinoid-based products for medicinal and wellness purposes is driving market expansion. With a vast potential consumer base and supportive regulatory frameworks, Latin America presents significant growth opportunities for companies seeking to enter or expand within the minor cannabinoids market.
Key Development:
- In December 2023, Rare Cannabinoid Company introduced Uplift Gummies infused with THC and THCV. These gummies combine the relaxing properties of Delta-9-THC with the energizing and appetite-controlling effects of CBD and THCV.
- In October 2022, High Tide Inc., a cannabis retailer, announced that its Colorado-based subsidiary, NuLeaf Naturals, had launched plant-based softgels and full-spectrum multicannabinoid oil in Manitoba. The products feature CBC, CBD, CBG, Delta-9 tetrahydrocannabinol (Delta 9), and CBN.
Browse Related Category Reports
Global Minor Cannabinoids Market:
- Aurora Europe GmbH
- BulKanna
- CBD. INC.
- Fresh Bros Hemp Company
- GCM Holdings, LLC (Global Cannabinoids)
- GenCanna.
- High Purity Natural Products.
- Laurelcrest
- Mile High Labs
- PBG Global
- Rhizo Sciences
- ZERO POINT EXTRACTION, LLC
- Other Industry Participants
Global Minor Cannabinoids Market
By Product Type
- Cannabigerol (CBG)
- Cannabichromene (CBC)
- Cannabinol (CBN)
- Cannabidivarin (CBDV)
- Tetrahydrocannabutol (THCB)
- Tetrahydrocannabivarin (THCV)
- Tetrahydrocannabiphorol (THCP)
- Others
By Application
- Pharmaceutical
- Pain Management
- Mental Health
- Sleep Disorders
- Anti-inflammatory
- Others
- Nutraceuticals
- Cosmetics and Personal Care
- Food and Beverages
- Others
By Region
- North America (U.S., Canada, Mexico, Rest of North America)
- Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
- Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
- Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
- Latin America (Brazil, Argentina, Rest of Latin America)
Consult with Our Expert:
Jay Reynolds
The Niche Research
Japan (Toll-Free): +81 663-386-8111
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Saudi Arabia (Toll-Free): +966 800-850-1643
United Kingdom: +44 753-710-5080
United States: +1 302-232-5106
Email: askanexpert@thenicheresearch.com
Website: www.thenicheresearch.com
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