Endava(US:DAVA)2025-09-04 11:21Revenue Performance - Q4 FY2025 revenue decreased by 3.9% year on year to £186.8 million, with a constant currency decrease of 0.7%[6] - FY2025 revenue increased by 4.3% year on year to £772.3 million, with a constant currency increase of 6.3%[3] - Revenue for the twelve months ended June 30, 2025, increased to £772,255,000, representing a growth of 4.3% compared to £740,756,000 in 2024[34] - Endava expects Q1 FY2026 revenue to be between £181.0 million and £183.0 million, representing a constant currency decrease of 5.0% to 6.0% year on year[15] - For FY2026, revenue is expected to range from £750.0 million to £765.0 million, indicating a constant currency change of between (1.5)% and 0.5% year on year[16] Earnings and Profitability - Diluted EPS for Q4 FY2025 was £0.02, compared to a loss of £(0.03) in the prior year[10] - Adjusted diluted EPS for FY2025 was £1.13, slightly up from £1.12 in the prior year[10] - Operating profit rose significantly to £31,507,000 from £20,140,000, reflecting a 56% increase year-over-year[34] - Adjusted profit before tax for the twelve months ended June 30, 2025, was £82,121,000, slightly down from £82,955,000 in 2024[39] - Basic earnings per share (EPS) improved to £0.36 for the twelve months ended June 30, 2025, compared to £0.29 in 2024[35] Client and Customer Metrics - The number of clients generating over £1 million in revenue decreased to 133 from 146 year on year[13] - Top 10 clients accounted for 37% of Q4 FY2025 revenue, up from 34% in the same period last year[13] - The percentage of revenue from the top 10 customers increased to 36% for the twelve months ended June 30, 2025, compared to 32% in 2024[44] - North America accounted for 38% of total revenue for the twelve months ended June 30, 2025, up from 33% in 2024[44] - Revenue from the Banking and Capital Markets sector increased to 20% in 2025, compared to 15% in 2024[44] Cash and Assets - As of June 30, 2025, cash and cash equivalents were £59.3 million, down from £62.4 million a year earlier[11] - Cash and cash equivalents at the end of the period were £59,345,000, a decrease from £62,358,000 in the previous year[37] - Total assets decreased to £935,771,000 as of June 30, 2025, from £1,008,956,000 in 2024, primarily due to a reduction in goodwill and intangible assets[36] Expenses and Compensation - Total share-based compensation expense for the twelve months ended June 30, 2025, was £32,045,000, a decrease of 7.4% from £34,678,000 in 2024[42] - Selling, general and administrative expenses related to share-based compensation rose to £9,261,000 in 2025, an increase of 5.5% from £8,776,000 in 2024[42] - Depreciation and amortization for the twelve months ended June 30, 2025, totaled £44,941,000, an increase of 15.2% from £38,941,000 in 2024[43] - Direct cost of sales for depreciation and amortization was £20,381,000 for the twelve months ended June 30, 2025, slightly down from £20,532,000 in 2024[43] Employee Metrics - The company had a closing number of total employees of 11,479 as of June 30, 2025, down from 12,085 in 2024, reflecting a reduction of 5.0%[44] - The average operational employees decreased to 10,403 for the twelve months ended June 30, 2025, from 10,587 in 2024[44] Other Financial Metrics - The company reported a net cash from operating activities of £52,773,000 for the twelve months ended June 30, 2025, down from £54,392,000 in 2024[41] - The company reported a total comprehensive expense of £19,164,000 for the year attributable to equity holders, compared to a comprehensive income of £14,081,000 in 2024[34] - The company experienced a foreign exchange impact of 2.0% on revenue growth, leading to a constant currency revenue growth rate of 6.3%[38] - The company repurchased 6,722,491 American Depositary Shares for $111.2 million as of August 29, 2025[19]