Endava(DAVA)2025-02-20 12:20Revenue Performance - Revenue for Q2 FY2025 was £195.6 million, an increase of 6.6% compared to £183.6 million in the same period in the prior year[4]. - Revenue increase at constant currency was 9.1% for Q2 FY2025[4]. - Revenue for the six months ended December 31, 2024, increased to £390,641,000, representing a growth of 5.0% compared to £371,973,000 in the same period of 2023[32]. - The revenue growth rate at constant currency for the six months ended December 31, 2024, was 7.0%, compared to a decline of 4.5% in the same period of 2023[37]. - Endava expects revenue for Q3 FY2025 to be in the range of £198.0 million to £200.0 million, representing a constant currency revenue increase of between 13.0% and 14.0% year over year[10]. - Full Fiscal Year 2025 revenue is expected to be in the range of £795.0 million to £800.0 million, representing a constant currency revenue increase of between 8.5% and 9.0% year over year[11]. Profitability - Profit before tax for Q2 FY2025 was £2.5 million, compared to £10.6 million in the same period in the prior year[4]. - Adjusted profit before tax for Q2 FY2025 was £21.8 million, or 11.2% of revenue, compared to £22.7 million, or 12.4% of revenue, in the same period in the prior year[4]. - Profit before tax for the six months ended December 31, 2024, decreased to £6,717,000 from £27,918,000 in the same period of 2023[38]. - Adjusted profit before tax for the six months ended December 31, 2024, was £41,067,000, down from £52,538,000 in the same period of 2023[38]. Earnings Per Share - Diluted EPS for Q2 FY2025 was £0.11, compared to £0.14 in the prior comparative period[4]. - Basic earnings per share (EPS) for the three months ended December 31, 2024, was £0.12, compared to £0.14 in the same period of 2023[33]. Client Metrics - As of December 31, 2024, the number of clients with over £1 million in revenue was 141, down from 150 clients at December 31, 2023[8]. - The number of clients generating over £1 million in revenue over the last 12 months decreased to 141 from 150, a decline of 6%[43]. - Top 10 clients accounted for 36% of revenue in Q2 FY2025, compared to 34% in the same period in the prior year[8]. Sector Performance - Revenue from North America increased to 39% of total revenue, up from 31% in the previous year, showing an 8 percentage point increase[43]. - The percentage of revenue from the Banking and Capital Markets sector rose to 18% in the six months ended December 31, 2024, compared to 14% in 2023, marking a 4 percentage point increase[43]. - Revenue from the Healthcare sector increased significantly to 12% in the six months ended December 31, 2024, compared to 4% in the same period last year, a growth of 8 percentage points[43]. - The percentage of revenue from the Payments sector decreased to 19% from 27% year-over-year, a decline of 8 percentage points[43]. - The geographic split of revenue from Europe remained relatively stable at 24% compared to 25% in the previous year[43]. Financial Position - Total assets as of December 31, 2024, were £980,594,000, a decrease from £1,013,891,000 as of June 30, 2024[35]. - Net cash from operating activities for the six months ended December 31, 2024, was £36,422,000, down from £51,623,000 in the same period of 2023[36]. - Adjusted free cash flow for the six months ended December 31, 2024, was £35,161,000, compared to £49,626,000 in the same period of 2023[40]. - The company reported a total comprehensive loss of £4,715,000 for the six months ended December 31, 2024, compared to a total comprehensive income of £22,582,000 in the same period of 2023[32]. Expenses - Selling, general and administrative expenses for the three months ended December 31, 2024, increased to £6,823,000 from £4,489,000 in 2023, reflecting a 52.0% increase[42]. - Total depreciation and amortisation expenses for the six months ended December 31, 2024, increased to £24,133,000 from £18,761,000 in 2023, representing a 28.5% increase[42]. Employee Metrics - The closing number of total employees as of December 31, 2024, was 11,668, up from 11,539 in 2023, indicating a growth of 1.1%[43]. Capital Allocation - Endava announced a $100 million share repurchase program to optimize capital allocation[2]. Financial Restatement - The company restated its financials to reflect the final acquisition accounting for DEK and Mudbath, impacting the overall financial presentation[44].