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== Appendix == === Alternative absolute valuation approach === === Relative valuation approach === ==== What's the expected return of an investment in the company using the relative valuation approach? ==== ==== What are the assumptions used to estimate the return figure? ==== ====What are the assumptions used to estimate the return figure?==== {| class="wikitable" |+Key inputs !Description !Value !Commentary |- |Which type of multiple do you want to use? |Price/earnings to growth |Mainly given the relatively low amount of fixed capital expenditure (as a proportion of revenue) of companies within the consultancy industry (for example, currently, Alpha's fixed capital expenditure as a proportion of revenue is around 0.5%), we suggest valuing the company using the price/earnings ratio. However, we feel that to take into account the different business lifecycle stages of its peers (and, therefore, the different growth stages of its peers), the most suitable valuation multiple to use is the price/earnings to (earnings) growth multiple (or the PEG multiple, for short), rather than the price/earnings multiple. Another multiple which we think it's worth looking at is the (sales) growth-adjusted EV/sales, mainly because the multiple takes into account the different leverage levels of the peers (whereas the PEG does not, at least not directly; one is able to argue that the leverage levels are reflected indirectly in the earnings growth rates). |- |In regards to the PEG multiple, for the earnings figure, which year to you want to use? |Year 1 |Research suggests that when using the relative valuation approach, it's best to use a time period of 12 months or less. Accordingly, for the earnings figure, we suggest using Year 1, which is 22 pence per share. |- |In regards to the PEG multiple, for the earnings growth figure, which year(s) do you want to use? |Year 2 to 4, from now |We suggest that for the earnings growth figure, it's best to use Year 2 to 4, which equates to a compound annual growth rate (CAGR) of 30%. |- |In regards to the PEG multiple, what multiple figure do you want to use? |1.04x |Here, we suggest using a multiple of 1.04x, which we believe is in-line with the multiples of Alpha's peers. |- |Which financial forecasts to use? |Proactive Investors | The only available forecasts are the ones that are supplied by us (the forecasts can be found in the financials section of this report), so we suggest using those. |- |What's the current value of the company? |$659 million |As at 26th January 2023, the current value of the Alpha FMC company is $659 million (or £554 million). |- |Which time period do you want to use to estimate the expected return? |Between now and one year time |Research suggests that when using the relative valuation approach, it's best to estimate the expected return of the company between now and one year time. |} {| class="wikitable" |+Key inputs !Description !Value !Commentary |- |Which type of multiple do you want to use? |Growth-adjusted EV/sales |For the numerator, we believe that to account for the different financial leverage levels of its peers, it's best to use enterprise value (EV), rather than price. For the denominator, we believe that because we expect Alpha FMC to reinvest almost all of its revenue back into the business over the five year forecast period and, therefore, its earnings are expected to be abnormally low over the period, it's best to use sales. Accordingly, we suggest valuing the company using the EV/sales ratio. However, we feel that to take into account the different business lifecycle stages of its peers, the most suitable valuation multiple to use is the (sales) growth-adjusted EV/sales multiple, rather than the EV/sales multiple. |- |In regards to the growth-adjusted EV/sales multiple, for the sales figure, which year to you want to use? |Year 1 |Research suggests that when using the relative valuation approach, it's best to use a time period of 12 months or less. Accordingly, for the sales figure, we suggest using Year 1, which is ccc pence per share. |- |In regards to the PEG multiple, for the earnings growth figure, which year(s) do you want to use? |Year 2 to 4, from now |We suggest that for the sales growth figure, it's best to use Year 2 to 4, which equates to a compound annual growth rate (CAGR) of 30%. |- |In regards to the PEG multiple, what multiple figure do you want to use? |0.43x |Here, we suggest using a multiple of 0.43x, which we believe is in-line with the multiples of Alpha's peers. |- |Which financial forecasts to use? |Proactive Investors | The only available forecasts are the ones that are supplied by us (the forecasts can be found in the financials section of this report), so we suggest using those. |- |What's the current value of the company? |$659 million |As at 26th January 2023, the current value of the Alpha FMC company is $659 million (or £554 million). |- |Which time period do you want to use to estimate the expected return? |Between now and one year time |Research suggests that when using the relative valuation approach, it's best to estimate the expected return of the company between now and one year time. |} {| class="wikitable" |+ !Name !Bloomberg ticker !Market capitalisation (USD,billion) !Primary exchange !Adjusted EV/sales !PEG !P/E !Earnings growth rate (%) !Sales growth rate !Adjusted beta |- |Alpha Financial Markets Consulting |AFM LN |659 |London |7.49 | | | |29% |1.07 |- ! colspan="10" |UK professional services |- |JTC |JTC LN |1,346 |London |23.19 | | | |24% |1.11 |- |XPS Pensions |XPS LN |425 |London | 30.16 | | | |8% | 0.73 |- |Gateley |GTLY LN |293 | London |15.73 | | | |10% |0.61 |- |Keystone Law |KEYS LN |166 |London |9.01 | | | |18% |0.63 |- | Elixirr International |ELIX LN |294 |London |6.54 | | | |45% |1.07 |- |Kin and Carta |KCT LN |493 |London | 10.47 | | | |14% | 0.90 |- |MJ Hudson |MJH LN |N/A |London | | | | |26% | |- |'''Median''' | |424.53 | London |10.47 | | | |21% |0.90 |- ! colspan="10" |Global consultancies |- |Accenture | ACN US |181,070 | New York |19.99 | | | |13% |1.19 |- | Cognizant Technology Solutions |CTSH US |33,091 |NASDAQ GS |32.76 | | | |5% |0.99 |- |CGI Inc. |GIB US |20,307 |New York |102.10 | | | |2% | 0.80 |- |Genpact |G US |8,857 |New York |20.74 | | | |10% |0.86 |- | Capgemini |CAP FP |32,648 | EN Paris | | | | |11% |1.17 |- |Reply SpA | REY IM |4,941 |BrsaItaliana |16.54 | | | |12% |0.91 |- |DXC Technology |DXC US |6,520 |New York |(8.99) | | | | -8% |1.12 |- |GFT Technologies |GFT GY |1,147 |Xetra |10.94 | | | |12% |1.26 |- |Atos SE |ATO FP |1,436 |EN Paris |51.54 | | | |1% |1.59 |- |Tata Consultancy Services |TCS IN |153,821 |Natl India |51.05 | | | |10% |0.89 |- |Infosys |INFO IN |78,994 |Natl India |27.75 | | | |14% |0.91 |- |Wipro |WPRO IN |27,006 |Natl India |18.26 | | | |11% |0.94 |- |HCL Technologies |HCLT IN |37,344 |Natl India |25.42 | | | |10% |0.92 |- |'''Median''' | |27,006 | |23.08 | | | |10% |0.94 |} {| class="wikitable" |+Discount/premium to peers !Name !Market capitalisation (USD,billion) !Adjusted EV/sales !Adjusted EV/EBITDA !Adjusted EV/EBIT !Adjusted P/E !Sales growth rate !Adjusted beta |- |UK professional services |55% |(28%) |(61%) |(68%) |(34%) |40% |19% |- |Global consultancies |(98%) |(68%) |(76%) |(76%) |(65%) |184% |14% |} {| class="wikitable" |+ !Name !2Y Corr !Mkt Cap (USD) !BF P/E !BF EV/EBITDA !BF EV/EBIT !BF EV/Rev !LF P/BV |- |Alpha Financial Markets Consul | |658.12M |21.0x |11.3x |13.0x |2.2x |3.6x |- |Current Premium to Comps Mean | | |19% |3% | -5% |4% | -15% |- |Mean (Including AFM LN) | |41.96B |17.6x |11.0x |13.7x |2.2x |4.2x |- | | | | | | | | |- |Capgemini SE |0.3 |32.63B |14.8x |9.6x |12.1x |1.5x |3.3x |- |GFT Technologies SE |0.24 |1.11B |18.7x |10.9x |13.8x |1.2x |5.3x |- |Tata Consultancy Services Ltd |0.24 |153.05B |26.4x |18.2x |19.8x |4.9x |11.5x |- |Atos SE |0.23 |1.45B |11.0x |4.9x |44.1x |0.4x |0.3x |- |Infosys Ltd |0.21 |77.81B |22.8x |15.6x |17.6x |3.9x |8.5x |- |CGI Inc |0.21 |20.23B |16.4x |10.9x |13.2x |2.2x |3.7x |- |Reply SpA |0.2 |4.93B |21.9x |12.7x |15.2x |2.0x |5.3x |- |Cognizant Technology Solutions |0.18 |33.77B |14.0x |8.5x |10.1x |1.6x |2.8x |- |Wipro Ltd |0.18 |26.78B |16.9x |10.6x |12.9x |2.0x |2.9x |- |Accenture PLC |0.17 |182.82B |23.3x |14.5x |17.4x |2.7x |7.6x |- |HCL Technologies Ltd |0.17 |37.12B |18.6x |11.4x |14.0x |2.6x |4.7x |- |DXC Technology Co |0.14 |6.50B |6.4x |3.7x |7.0x |0.7x |1.4x |- |Genpact Ltd |0.13 |8.59B |15.5x |11.6x |12.6x |2.1x |5.0x |} {| class="wikitable" |+ !Name !Rev - 1 !EPS - 1 !P/E !ROE !Dvd 12M |- |Alpha Financial Markets Consul |61.11% |5.96% |29.38 |9.44% |2.41% |- |Accenture PLC |21.89% |22.99% |24.91 |32.90% |1.51% |- |Cognizant Technology Solutions |11.14% |38.06% |14.6 |19.95% |1.64% |- |CGI Inc |6.11% |12.82% |18.43 |20.87% | -- |- |Genpact Ltd |8.43% |7.41% |25.19 |19.11% |1.07% |- |Capgemini SE |14.59% |24.89% |21.25 |19.60% |1.39% |- |Reply SpA |16.87% |19.16% |29.18 |18.12% |0.66% |- |DXC Technology Co | -8.26% |155.46% |14.27 |10.30% | -- |- |GFT Technologies SE |27.28% |82.77% |23.97 | -- |0.90% |- |Atos SE | -3.06% | -- | -- | -14.49% | -- |- |Tata Consultancy Services Ltd |16.80% |16.23% |30.76 |37.83% |3.31% |- |Infosys Ltd |21.07% |14.98% |26.93 |32.98% |2.14% |- |Wipro Ltd |27.69% |16.49% |19.17 |16.02% |1.51% |- |HCL Technologies Ltd |12.84% |2.13% |21.35 |22.27% |4.30% |- |'''Medium''' |'''15.69%''' |'''16.49%''' |'''23.97''' |'''19.60%''' |'''1.51%''' |} {| class="wikitable" |+ !Name !Net debt/EBIT !Total debt/EBIT !Net debt/Equity !Total debt/Total assets !EBITDA/Interest expense |- ! !(x) !(x) !(%) !(%) !(x) |- |Median | -0.27 |0.77 | -10.13 |12.79% |44.42 |- |Alpha Financial Markets Consul | -- | -- | -- |1.05% |64.72 |- |Accenture PLC | -0.21 |0.27 | -11 |7.04% |258 |- |Cognizant Technology Solutions | -0.34 |0.42 | -10.13 |9.27% |411.44 |- |CGI Inc |1.17 |1.55 |41.38 |26.20% |44.42 |- |Genpact Ltd |1.86 |2.65 |70.93 |40.20% |13.04 |- |Capgemini SE | -- | -- | -- |31.80% |24.65 |- |Reply SpA | -- | -- | -- |9.08% |51.59 |- |DXC Technology Co |1.58 |2.68 |65.92 |30.63% |10.07 |- |GFT Technologies SE | -- | -- |20.93 |25.15% |42.01 |- |Atos SE | -- | -- | -- |34.80% |26.25 |- |Tata Consultancy Services Ltd | -0.86 |0.13 | -45.4 |5.52% |200.19 |- |Infosys Ltd | -0.33 |0.26 | -15.34 |4.64% | -- |- |Wipro Ltd | -1.19 |1.11 | -25.95 |16.30% |30.86 |- |HCL Technologies Ltd | -- | -- | -- |7.12% |83.33 |} {| class="wikitable" |+ !Name !Sales growth !EBITDA growth !EBITDA margin !Operating income margin !Net income growth !Net profit margin !Capex/Sales (%) !Return on invested capital !Return on assets !Return on equity |- |Median |16.08% |10.10% |18.70% |15.27% |8.06% |10.02% |1.49% |12.95% |9.85% |19.60% |- |Alpha Financial Markets Consul |65.31% |105.08% |18.82% |15.37% |28.07% |6.55% |0.43% |12.24% |5.90% |9.44% |- |Accenture PLC |16.08% |16.58% |19.56% |15.27% |17.52% |11.43% |1.17% |32.40% |15.70% |32.90% |- |Cognizant Technology Solutions |8.11% |12.48% |18.52% |15.56% |22.45% |12.11% |1.51% |17.51% |13.56% |19.95% |- |CGI Inc |6.11% |4.31% |19.94% |16.25% |8.22% |11.56% |1.21% |13.65% |9.85% |20.87% |- |Genpact Ltd |11.29% | -4.50% |15.18% |11.92% |2.10% |8.11% |1.33% |10.22% |7.34% |19.11% |- |Capgemini SE |18.61% |16.26% |14.84% |11.37% |25.84% |7.60% |1.46% |10.51% |6.52% |19.60% |- |Reply SpA |21.46% |13.39% |16.22% |13.23% |1.59% |8.61% |2.50% |14.33% |8.70% |18.12% |- |DXC Technology Co | -8.73% | -36.05% |13.41% | -1.59% | -38.91% |3.14% |1.56% | -10.30% |2.55% |10.30% |- |GFT Technologies SE | -- | -- | -- | -- | -- |6.09% |1.22% | -- | -- | -- |- |Atos SE |0.00% | -30.86% |7.47% | -0.04% | -- | -7.52% |2.51% | -17.95% | -4.74% | -14.49% |- |Tata Consultancy Services Ltd |17.32% |10.44% |26.43% |24.15% |7.90% |18.68% |1.30% |32.05% |25.89% |37.83% |- |Infosys Ltd |22.41% |10.10% |24.16% |21.34% |10.09% |16.74% |1.78% |26.95% |20.16% |32.98% |- |Wipro Ltd |18.37% | -0.27% |18.70% |15.04% | -5.44% |12.80% |2.55% |11.40% |10.34% |16.02% |- |HCL Technologies Ltd |7.99% | -1.77% |22.30% |17.99% |2.90% |14.84% |1.92% | -- |15.57% |22.27% |} {| class="wikitable" |+ !Name !Raw Beta !Adj Beta (2/3*Raw Beta+1/3*1) !Alpha !R Squared !Standard deviation of error !Relative Index |- |Median |0.95 |0.96 |0.04 |0.3 |3.02 | |- |Alpha Financial Markets Consul |1.11 |1.07 |0.47 |0.15 |4.43 |UKX Index |- |Accenture PLC |1.27 |1.18 |0.05 |0.69 |2.19 |SPX Index |- |Cognizant Technology Solutions |0.99 |0.99 | -0.21 |0.45 |2.81 |SPX Index |- |CGI Inc |0.53 |0.68 |0.03 |0.16 |2.28 |SPTSX Index |- |Genpact Ltd |0.77 |0.85 |0.15 |0.43 |2.28 |SPX Index |- |Capgemini SE |1.25 |1.17 |0.08 |0.53 |2.87 |CAC Index |- |Reply SpA |0.87 |0.91 |0.1 |0.2 |4.6 |FTSEMIB Index |- |DXC Technology Co |1.16 |1.11 |0.05 |0.23 |5.43 |SPX Index |- |GFT Technologies SE |1.31 |1.21 |1.17 |0.2 |6.12 |DAX Index |- |Atos SE |1.88 |1.59 | -1.78 |0.3 |6.93 |CAC Index |- |Tata Consultancy Services Ltd |0.83 |0.89 | -0.09 |0.33 |2.64 |SENSEX Index |- |Infosys Ltd |0.87 |0.91 |0.01 |0.33 |2.78 |SENSEX Index |- |Wipro Ltd |0.91 |0.94 | -0.22 |0.3 |3.17 |SENSEX Index |- |HCL Technologies Ltd |0.88 |0.92 |0.02 |0.27 |3.23 |SENSEX Index |} {| class="wikitable" |+ !Name !2Y Corr !Mkt Cap (USD) !BF P/E !BF EV/EBITDA !BF EV/EBIT !BF EV/Rev !LF P/BV |- |Alpha Financial Markets Consulting | |646.52M |20.6x |11.1x |12.8x |2.2x | 3.5x |- |Randstad NV |0.27 |11.84B | 14.0x |8.3x |10.8x |0.4x |2.3x |- |Coor Service Management Holdin |0.25 |635.89M |13.3x | 9.1x |15.6x |0.7x |3.1x |- |Bure Equity AB |0.25 |1.82B | -- | -- | -- | -- |1.5x |- |GFT Technologies SE | 0.24 | 1.10B |18.7x |10.9x |13.8x | 1.2x |5.3x |- |Rejlers AB |0.21 |287.34M |14.8x |8.4x |13.9x |0.9x |2.1x |- |XPS Pensions Group PLC |0.17 |414.52M |14.2x |9.7x |11.4x |2.4x |2.3x |- |Science Group PLC |0.16 |219.09M | -- | -- | -- | -- |2.5x |- |Fintel Plc |0.13 | 266.34M |16.9x |10.7x | 12.7x |3.2x |2.3x |- |RPS Group PLC |0.12 |762.27M |24.9x |11.8x |17.5x |1.2x |1.7x |- |Alan Allman Associates |0.04 |442.12M |19.5x |13.2x |15.6x | 1.4x |2.9x |- | | | | | | | | |- |Current Premium to Comps Mean | | |21% |11% | -6% |43% |32% |- |Mean (Including AFM LN) | |1.68B |17.0x |10.0x |13.5x |1.5x |2.7x |} ====Sensitive analysis==== The three main inputs that result in the greatest change in the expected return of the Alpha investment are, in order of importance (from highest to lowest): #The PEG multiple (the default multiple is 1.04x); # The Year-one earnings forecast (the default forecast is $ccc million); and #The Year 2 to 4 earnings growth forecast (the default forecast isccc%) The impact of a 10% change in those main inputs to the expected return of the Alpha investment is shown in the table below. {| class="wikitable sortable" |+Sirius investment expected return sensitive analysis !Main input !10% worse !Unchanged !10% better |- |The growth-adjusted EV/sales multiple |To be added |To be added |To be added |- |The Year-one sales forecast |To be added |To be added |To be added |- |The Year 2 to Year 4 sales growth forecast |To be added |To be added |To be added |} ===Dividend=== Since the company's listing (i.e. around five years ago), the median dividend growth rate is 16%, and the mean is 48%. The constant/fixed rate dividend rate is 11.97%; in other words, if the company had grown its dividend during that period at a rate that is constant (rather than variable), then the rate would be 11.97%. {| class="wikitable" |+Dividend !Financial year !Interim !Full-year !Total !Growth |- |2023 |3.70 |7.60 |11.30 |9% |- |2022 |2.90 |7.50 |10.40 |50% |- |2021 |2.10 |4.85 |6.95 |231% |- |2020 |2.10 |0.00 |2.10 | -65% |- |2019 |1.91 |4.09 |6.00 |16% |- |2018 | 1.48 |3.69 |5.17 |N/A |} {| class="wikitable" |+Significant Shareholders ! Shareholders !% of issued share capital with voting rights |- |Abrdn |10.69 |- |Invesco |9.06 |- |Janus Henderson Investors |7.51 |- |BlackRock |5.45 |- | Investec Wealth & Investment |4.65 |- |NFU Mutual |3.98 |- |M&G Investment Management |3.84 |} Last updated 17th January 2023. The percentage of the company’s issued share capital not in public hands is 6.4%. *The company's medium term goal is to double it size over the four years to November 2024 (from November 2020). *The asset management, wealth management and insurance markets are influenced by powerful long-term trends, notably the drive for efficiency, fee compression, regulatory change and the growing focus on ESG and responsible investment. *These trends represent a strong tailwind for the Group and are steadily increasing the relevance and value of its proposition: to provide the best specialist consultancy services for clients wherever in the world they need us. *The group’s strategic aim to be recognised as the leading global consultancy to the asset management, wealth management and insurance industries. *The three most significant growth opportunities that would enable Alpha to achieve our growth target of doubling the business - rapid expansion in insurance consulting, continued strong growth in North America and acquisitions. *One of the company's beliefs that the insurance industry offers an opportunity for Alpha of comparable scale to its core asset and wealth management market is being rapidly vindicated. *Our technology services business has also been significantly strengthened over the past year thanks to major investments in Axxsys, the software implementation specialist that we acquired in FY 20. Over the past 12 months, Axxsys has broadened its proposition with the launch of technology consulting practices focussed on data and cloud services, front office projects and wealth management. *Our current trading and project pipeline to date is very strong, and our revenue visibility is better than ever as our clients commit to longer and more complex business change projects. These factors, coupled with Alpha's robust balance sheet, give us considerable confidence that even if we are heading into more difficult markets, we are doing so from a position of real strength. {| class="wikitable" |+Consolidated statement of comprehensive income ! !Year ended 31st March 2017 ('''£'000''') !Year ended 31st March 2018 ('''£'000''') !Year ended 31st March 2019 ('''£'000''') !Year ended 31st March 2020 ('''£'000''') !Year ended 31st March 2021 ('''£'000''') !Year ended 31st March 2022 ('''£'000''') |- |Continuing operations | | | | | | |- |'''Revenue''' |'''49,240''' |'''66,009''' |'''77,661''' |'''90,901''' |'''98,066''' |'''158,005''' |- |Rechargeable expenses | - | - |(1,701) |(1,977) |(112) | (196) |- |Net fee income | - | - |75,960 |88,924 |97,954 |157,809 |- |Cost of sales |(32,515) |(40,748) |(46,878) |(54,521) |(63,130) |(98,452) |- |'''Gross profit''' |'''16,725''' |'''25,261''' |'''29,082''' |'''34,403''' |'''34,824''' |'''59,357''' |- | Administration expenses |(12,721) |(16,703) |(16,510) |(23,977) |(24,648) |(41,582) |- |'''Operating profit''' |'''4,004''' |'''8,558''' |'''12,572''' |'''10,426''' | '''10,176''' |'''17,775 ''' |- |Depreciation | 289 |297 |263 |1,022 |1,085 |1,155 |- |Amortisation of capitalised development costs | - | - | - |428 |613 |556 |- | Adjusting items |3,951 |5,114 |3,643 |8,372 |9,833 |14,382 |- |'''Adjusted EBITDA''' |'''8,244''' | '''13,969''' |'''16,478''' |'''20,248''' |'''21,707''' |'''33,868''' |- |Finance income |5 | - | - |1 | - |1 |- |Finance expense |(7,880) |(7,059) |(52) |(1,133) |(1,207) |(2,894) |- |'''Profit before tax''' |'''(3,871)''' |'''1,499''' |'''12,520''' |'''9,294''' |'''8,969''' |'''14,882''' |- |Taxation |(537) |(1,941) |(3,321) |(3,127) |(3,142) |(6,370) |- |'''Profit for the year''' |'''(4,408)''' |'''(442)''' |'''9,199''' |'''6,167''' |'''5,827''' |'''8,512''' |- |Exchange differences on translation of foreign operations | (224) |(186) |2,505 |1,311 | (3,104) |3,180 |- |'''Total comprehensive income for the year''' |'''(4,632)''' |'''(628)''' | '''11,704''' |'''7,478''' |'''2,723''' |'''11,692 ''' |- |Basic earnings per ordinary share (p) |(5.52) |(0.49) |9.05 |6.11 |5.75 |7.69 |- |'''Diluted earnings per ordinary share (p)''' |'''(5.52)''' |'''(0.49)''' |'''8.84''' |'''5.85''' |'''5.50''' |'''7.25''' |} {| class="wikitable" |+Consolidated statement of financial position ! !As at 31st March 2017 ('''£'000)''' ! As at 31st March 2018 ('''£'000)''' !As at 31st March 2019 ('''£'000)''' !As at 31st March 2020 ('''£'000)''' !As at 31st March 2021 ('''£'000)''' !As at 31st March 2022 ('''£'000)''' |- |'''Assets''' | | | | | | |- |'''Non-current assets''' | | | | | | |- |Goodwill |51,529 | 52,626 |55,162 |64,642 | 63,067 |100,991 |- |Intangible fixed assets |23,213 |22,913 |20,768 |25,774 |21,648 |31,333 |- | Property, plant and equipment |451 | 397 |414 |530 |415 |806 |- | Right-of-use asset | - | - | - |2,611 |1,816 |2,304 |- |Deferred tax asset | - | - | - | - |<nowiki>-</nowiki> |671 |- |Capitalised contract fulfilment costs | - | - | - | - |154 |131 |- |'''Total non-current assets''' |'''75,193''' |'''75,936''' |'''76,344''' |'''93,557''' |'''87,100''' |'''136,236''' |- |'''Current assets''' | | | | | | |- |Trade and other receivables |12,087 |21,242 |19,680 |21,212 |17,938 |29,569 |- |Cash and cash equivalents |8,023 |9,774 |18,581 | 25,996 |34,012 |63,516 |- |'''Total current assets''' |'''20,110''' |'''31,016''' |'''38,261''' |'''47,208''' |'''51,950''' |'''93,085''' |- |'''Current liabilities''' | | | | | | |- |Trade and other payables |(10,024) | (20,621) |(18,427) |(26,018) |(27,241) |(56,671) |- |Provisions | - | - |(3,359) |(4,150) | - |(3,277) |- |Corporation tax | - | - | - |(791) |(1,792) |(4,788) |- |Lease liabilities | - | - | - |(5,000) |(514) | (1,134) |- |'''Total current liabilities''' |'''(10,024)''' |'''(20,621)''' |'''(21,786)''' |'''(35,959)''' |'''(29,547)''' |'''(65,870)''' |- |'''Net current assets''' |'''10,086''' |'''10,395''' | '''16,475''' |'''11,249''' |'''22,403''' |'''27,215''' |- |'''Non-current liabilities''' | | | | | | |- |Borrowings |(85,879) | - | - | - | | - |- |Deferred tax provision |(3,946) |(3,401) |(3,193) |(4,438) |(3,022) |(4,331) |- |Other non-current liabilities | - |(277) |(486) | (7,104) |(10,737) |(25,100) |- |Lease liabilities | - | - | - |(1,878) |(1,379) |(1,275) |- |'''Total non-current liabilities''' |'''(89,825)''' | '''(3,678)''' |'''(3,679)''' |'''(13,420)''' |'''(15,138)''' | '''(30,706)''' |- |'''Net assets''' |'''(4,546)''' |'''82,653''' |'''89,140''' |'''91,386''' |'''94,365''' |'''132,745''' |- |Equity | | | | | | |- |Issued share capital | - |77 |76 |78 |80 |89 |- |Share premium |86 |89,396 |89,396 |89,396 |89,396 | 119,438 |- |Capital redemption reserve | - | - |1 | - | - | - |- |Foreign exchange reserve |(224) |(410) |2,095 |3,406 |302 |3,482 |- |Other reserves | - |267 |737 |1,652 |4,044 | 9,361 |- |Retained earnings |(4,408) | (6,677) | (3,165) |(3,146) |543 |375 |- |'''Total shareholders' equity''' |'''(4,546)''' |'''82,653''' |'''89,140''' |'''91,386''' |'''94,365''' |'''132,745''' |} {| class="wikitable" |+Consolidated statement of cash flows ! !Year ended 31st March 2017 ('''£'000''') !Year ended 31st March 2018 ('''£'000''') !Year ended 31st March 2019 ('''£'000''') !Year ended 31st March 2020 ('''£'000''') !Restated<ref>The Group has re-presented the consolidated statement of cash flows in the comparative year to reconcile from "profit for the year" rather than "operating profit" to align with the requirements of IAS 7.</ref> year ended 31 March 2021 ('''£'000''') !Year ended 31 March 2022 ('''£'000''') |- |'''Cash flows from operating activities:''' | | | | | | |- |Profit for the year | | | | |5,827 |8,512 |- |Taxation | | | | |3,142 |6,370 |- |Finance income | | | | |<nowiki>-</nowiki> |(1) |- |Finance expense | | | | |1,207 |2,894 |- |Depreciation of property, plant and equipment |289 |297 |263 |1,022 |1,085 |1,155 |- |Loss on disposal of fixed assets |2,488 | - |6 |11 |13 |32 |- |Amortisation of intangible fixed assets |2,488 |2,383 |2,586 |3,804 |4,130 |5,272 |- |Share-based payment charge | - |191 |436 |917 |1,693 |4,075 |- |Acquisition related costs | 1,463 |241 |61 | - | - | - |- |Costs relating to AIM admission | - | 1,621 | - | - | - | - |- |Increase in provisions | - | - | - |<nowiki>-</nowiki> |<nowiki>-</nowiki> |1,302 |- |Operating cash flows before movements in working capital |8,244 |13,291 |15,924 |16,180 |17,097 |29,611 |- | '''Working capital adjustments:''' | | | | | | |- |(Increase)/decrease in trade and other receivables |(1,644) |(8,839) |1,562 |30 |3,221 |(7,066) |- |Increase in trade and other payables |970 |8,107 | 878 |4,444 |6,424 |15,729 |- |Tax paid |(1,707) |(1,222) |(1,996) |(2,446) |(5,707) |(4,767) |- |'''Net cash generated from operating activities''' |'''5,863''' |'''11,337''' |'''16,368''' |'''18,208''' |'''21,035''' | '''33,507''' |- |'''Cash flows from investing activities:''' | | | | | | |- |Interest received |5 | - | - |1 |<nowiki>-</nowiki> |1 |- |Acquisition of subsidiaries, net of acquired cash |(77,790) |(1,941) |(1,113) |(7,339) |(2,752) |(23,796) |- |Costs relating to AIM admission | - |(892) | - | - | - | - |- |Costs relating to acquisitions |(1,463) |(242) | - | - | - | - |- |Capitalised development costs | - | - | - | (1,387) | - | - |- | Purchase of property, plant and equipment, net of disposals |(199) |(243) |(728) |(349) |(151) |(684) |- |'''Net cash used in investing activities''' |'''(79,447)''' |'''(3,318)''' |'''(1,841)''' |'''(9,074)''' |'''(2,903)''' |'''(24,479)''' |- |'''Cash flows from financing activities:''' | | | | | | |- |Issue of ordinary share capital |86 | 34,348 | - |(1) |<nowiki>-</nowiki> |31,102 |- |Share issuance costs | - | - | - | - |<nowiki>-</nowiki> |(1,053) |- |EBT purchase of Company's own shares | - | - | - | - |<nowiki>-</nowiki> |(205) |- |Repayment of bank borrowings |(1,540) | (33,602) | - |5,000 |(5,000) |<nowiki>-</nowiki> |- |New borrowings |83,829 | - | - | - | - | - |- | Interest and bank loan fees | - | - | - | - |(486) |(285) |- |Principal lease liability payments |(1,431) |(5,469) |(45) |(706) |(809) |(814) |- |Interest on lease liabilities | - | - | - |(129) |(102) |(111) |- |Repayment of preference shares |(95) | - | - | - | - | - |- |Dividends paid | |(1,508) |(5,687) |(6,256) |(2,136) |(8,678) |- |'''Net cash generated from/(used in) financing activities''' |80,849 |(6,231) |(5,732) |(2,139) |'''(8,533)''' |'''19,956''' |- |'''Net increase in cash and cash equivalents''' |7,265 |1,788 |8,795 |6,995 |'''9,599''' |'''28,984''' |- |Cash and cash equivalents at beginning of the year | - |8,023 |9,774 |18,581 |25,996 |34,012 |- |Effect of exchange rate fluctuations on cash held |758 |(37) |12 |420 |(1,583) |520 |- |'''Cash and cash equivalents at end of the year''' |8,023 |9,774 |18,581 |25,996 |'''34,012''' |'''63,516''' |} {| class="wikitable" |+ ! !2017 !2018 !2019 !2020 !2021 !2022 |- |Cash Flow from Operations | style="background: green; color: white;" |+ | style="background: green; color: white;" |+ | style="background: green; color: white;" |+ | style="background: green; color: white;" |+ | style="background: green; color: white;" |+ | style="background: green; color: white;" |+ |- |Cash Flow from Investing | style="background: red; color: white;" |- | style="background: red; color: white;" |- | style="background: red; color: white;" |- | style="background: red; color: white;" |- | style="background: red; color: white;" |- | style="background: red; color: white;" |- |- |Cash Flow from Financing | style="background: green; color: white;" |+ | style="background: red; color: white;" |- | style="background: red; color: white;" |- | style="background: red; color: white;" |- | style="background: red; color: white;" |- | style="background: green; color: white;" |+ |} {| class="wikitable" |+Interim condensed consolidated statement of comprehensive income ! !Unaudited six months ended 30 Sep 2022 !Unaudited six months ended 30 Sep 2021 |- | |'''£'000''' |'''£'000''' |- |'''Continuing operations''' | | |- |'''Revenue''' |'''107,599''' |'''68,421''' |- |Rechargeable expenses |(583) |(31) |- |'''Net fee income''' |'''107,016''' |'''68,390''' |- |Cost of sales |(68,573) |(41,930) |- |'''Gross profit''' |'''38,443''' |'''26,460''' |- |Administration expenses |(22,679) |(20,992) |- |'''Operating profit''' |'''15,764''' |'''5,468''' |- |Depreciation |898 |497 |- |Amortisation of capitalised development costs |151 |301 |- |Adjusting items |5,668 |9,171 |- |'''Adjusted EBITDA''' |'''22,481''' |'''15,437''' |- |Finance income |65 |1 |- |Finance expense |(1,630) |(1,238) |- | '''Profit before tax''' |'''14,199''' |'''4,231''' |- |Taxation |(3,922) |(3,278) |- |'''Profit for the period''' |'''10,277''' |'''953''' |- |Exchange differences on translation of foreign operations |9,963 |2,100 |- |'''Total comprehensive income for the period''' |'''20,240''' |'''3,053''' |- |Basic earnings per ordinary share (p) |9.10 |0.87 |- |Diluted earnings per ordinary share (p) |8.55 |0.83 |} {| class="wikitable" |+Interim condensed consolidated statement of financial position ! !Unaudited as at 30th September 2022 !Unaudited as at 30th September 2021 !Audited as at 31st March 2022 |- | |'''£'000''' |'''£'000''' |'''<nowiki/>'000''' |- |'''Non-current assets''' | | | |- |Goodwill |107,310 |100,307 |100,991 |- |Intangible fixed assets |30,936 |33,661 |31,333 |- |Property, plant and equipment |1,109 |576 |806 |- |Right-of-use asset |1,904 |2,032 |2,304 |- |Deferred tax asset |1,088 |<nowiki>-</nowiki> |671 |- |Capitalised contract fulfilment costs |119 |168 |131 |- |'''Total non-current assets''' |'''142,466''' |'''136,744''' |'''136,236''' |- |'''Current assets''' | | | |- |Trade and other receivables |41,695 |27,644 |29,569 |- |Cash and cash equivalents |47,764 |40,032 |63,516 |- |Total current assets |89,459 |67,676 |93,085 |- |Current liabilities | | | |- |Trade and other payables |(55,709) |(47,579) |(56,671) |- |Provisions |(3,433) |<nowiki>-</nowiki> |(3,277) |- |Corporation tax |(3,226) |(2,307) |(4,788) |- |Lease liabilities |(1,072) |(745) |(1,134) |- |Interest bearing loans and borrowings |(7,477) |<nowiki>-</nowiki> |<nowiki>-</nowiki> |- |'''Total current liabilities''' |'''(70,917)''' |'''(50,631)''' |'''(65,870)''' |- |'''Net current assets''' |'''18,542''' |'''17,045''' |'''27,215''' |- |'''Non-current liabilities''' | | | |- |Deferred tax liability |(3,765) |(5,598) |(4,331) |- |Other non-current liabilities |(8,357) |(22,279) |(25,100) |- |Lease liabilities |(941) |(1,375) |(1,275) |- |'''Total non-current liabilities''' |'''(13,063)''' |'''(29,252)''' |'''(30,706)''' |- |'''Net assets''' |'''147,945''' |'''124,537''' |'''132,745''' |- |'''Equity''' | | | |- |Issued share capital |90 |89 |89 |- |Share premium |119,438 |119,438 |119,438 |- |Foreign exchange reserve |13,445 |2,402 |3,482 |- |Other reserves |12,867 |6,545 |9,361 |- |Retained earnings |2,105 |(3,937) |375 |- |'''Total shareholders' equity''' |'''147,945''' |'''124,537''' |'''132,745''' |} {| class="wikitable" |+Interim condensed consolidated statement of cash flows ! !Unaudited six months ended 30 Sep 2022 !Restated<sup>10</sup> unaudited six months ended 30 Sep 2021 ! Audited year ended 31 Mar 2022 |- | |'''£'000''' |'''£'000''' |'''£'000''' |- |'''Cash flows from operating activities:''' | | | |- |Profit for the period |10,277 |953 |8,512 |- |Taxation |3,922 |3,278 |6,370 |- |Finance income |(65) |(1) |(1) |- |Finance expenses |1,630 |1,238 |2,894 |- |Depreciation of property, plant and equipment |898 |497 |1,155 |- |Loss on disposal of fixed assets |<nowiki>-</nowiki> |21 |32 |- |Amortisation of intangible fixed assets |2,507 |2,559 |5,272 |- |Share-based payment charge |3,588 |1,672 |4,075 |- |Increase in provisions |<nowiki>-</nowiki> |<nowiki>-</nowiki> |1,302 |- |Foreign exchange gain on cash and cash equivalents |(4,764) |<nowiki>-</nowiki> |<nowiki>-</nowiki> |- |'''Operating cash flows before movements in working capital''' |'''17,993''' |'''10,217''' |'''29,611''' |- |'''Working capital adjustments:''' | | | |- |Increase in trade and other receivables |(9,065) |(5,160) |(7,066) |- |(Decrease)/increase in trade and other payables |(676) |3,573 |15,729 |- |Tax paid |(6,062) |(2,660) |(4,767) |- |'''Net cash generated from operating activities''' |'''2,190''' |'''5,970''' |'''33,507''' |- |Cash flows from investing activities: | | | |- |Interest received |65 |1 |1 |- |Consideration paid on acquisitions, net of cash acquired |(20,716) |(23,796) |(23,796) |- |Purchase of intangible assets |(319) |<nowiki>-</nowiki> |<nowiki>-</nowiki> |- |Purchase of property, plant and equipment, net of disposals |(564) |(204) |(684) |- |'''Net cash used in investing activities''' |'''(21,534)''' |'''(23,999)''' |'''(24,479)''' |- |'''Cash flows from financing activities:''' | | | |- |Issue of ordinary share capital |<nowiki>-</nowiki> |31,102 |31,102 |- |Share issuance costs |<nowiki>-</nowiki> |(1,053) |(1,053) |- |Net settlement of vested share options |(322) |<nowiki>-</nowiki> |<nowiki>-</nowiki> |- |EBT purchase of Company's own shares |(1,129) |(187) |(205) |- |Drawdown of bank borrowings |7,477 |<nowiki>-</nowiki> |<nowiki>-</nowiki> |- |Interest and bank loan fees |(110) |(199) |(285) |- |Principal lease liability payments |(650) |(348) |(814) |- |Interest on lease liabilities |(53) |(52) |(111) |- |Dividends paid |(8,547) |(5,431) |(8,678) |- |'''Net cash (used in)/generated from financing activities''' |'''(3,334)''' |'''23,832''' |'''19,956''' |- |'''Net (decrease)/increase in cash and cash equivalents''' |'''(22,678)''' |'''5,803''' |'''28,984''' |- |Cash and cash equivalents at beginning of the period |63,516 |34,012 |34,012 |- |Effect of exchange rate fluctuations on cash held |6,926 |217 |520 |- |'''Cash and cash equivalents at end of the period''' |'''47,764''' |'''40,032''' |'''63,516''' |} 0.61% of GDP is spent on management consultancy services. {| class="wikitable" |+GDP-weighted spending on consultancy in 2005<ref>Source: Datamonitor (2008).</ref> !Country !Consulting revenue (billion) !GDP (billion)<ref>World Bank Figures. 2005 Available at: <nowiki>http://data.worldbank.org/indicator/NY.GDP.PCAP.CD?page</nowiki> = 1</ref> !Consulting spend/GDP (%) |- |USA |112.50 |13,094.79 |0.86% |- |United Kingdom |19.40 |2,321.84 |0.84% |- |Germany |18.50 |2,767.30 |0.67% |- |Japan |20.40 |4,572.81 |0.45% |- |France |8.40 |2,137.36 |0.39% |- |Italy |2.60 |1,786.07 |0.15% |- |China |2.34 |2,256.70 |0.10% |- |India |1.49 |834.05 |0.18% |- |South Korea |1.64 |844.20 |0.19% |} ===Economic links to cash flow patterns === {| class="wikitable" |+Economic links to cash flow patterns |- !Cash flow type!!Introduction!!Growth!!Shake out!!Mature!!Decline |- |Operating|| style="background: red; color: white;" |-|| style="background: green; color: white;" |+ | style="background: orange; color: white;" | +/-|| style="background: green; color: white;" |+|| style="background: red; color: white;" |- |- |Investing|| style="background: red; color: white;" |-|| style="background: red; color: white;" |-|| style="background: orange; color: white;" |+/-|| style="background: red; color: white;" |- | style="background: green; color: white;" | + |- |Financing|| style="background: green; color: white;" |+|| style="background: green; color: white;" |+|| style="background: orange; color: white;" |+/-|| style="background: red; color: white;" |-|| style="background: orange; color: white;" |+/- |}
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