Praxis reports positive results and innovation at the half-year point

Praxis has published its 2024 interim results, with increases shown in both revenue and gross profit margin.

The first half of the year saw net revenue increase by 8.9% from £24.8 to £27.0m, and gross profit margin improve from 58% to 62% reflecting the enhanced productivity and increased efficiencies that have been a key focus of the Group’s transformation programme.

The six months to 30 June also saw continued improvement in the organisation’s new business pipeline with ‘won’ work on track to deliver an uplift of 10% year on year following the investment into its business development function and the subsequent boost to organic growth.

Highlights

• Revenue £27m representing net organic revenue growth of 4.2%
• Gross profit margin 62%
• Underlying EBITDA up to £4.0m from £2.9m in the previous year
• New business pipeline (weighted*) up 19% to £3.2m
• Interim dividend of 1.25p per share declared

Its yacht services division turned in a strong performance with new business pipeline increasing by more than double since the start of the financial year and more than quadruple since the acquisition of Sarnia Yachts in July 2023.

To date, the yachts services team has rolled out a best-in-class EU-hosted online safety management system, announced an alliance with specialist yacht agency Insignia Crew to deliver streamlined recruitment solutions to the industry, and launched Praxis Select - a packaged suite of ownership, management and crew services for private and commercial yachts under 500 gross tons.

Innovation is also in evidence in the expansion of the Group’s corporate services division, which was announced to the market in March with the launch of two off-the-shelf company secretarial solutions: CoSec LITE, which provides essential compliance and governance assistance; and CoSec Classic, which delivers a broader range of services to companies and structures requiring a higher level of support.

With an initial focus on the UK and Jersey, the corporate services drive is also on the development of the Group’s fund administration offering in the UAE, working with its strong network of institutional, private equity and venture capital clients.

Having established a market presence in the Middle East in 2013, the team on the ground is well-placed to leverage its expertise in this sector, and during the first half of the year has set in place some key hires and technology to capitalise on the opportunity. 

Group CEO, Rob Fearis, highlighted the amount of progress made during the first half of the year, reporting that: “As we reach the end of our transformation programme, we are taking positive strides in 2024 and moving the focus from working smarter to enhancing client satisfaction and reducing attrition.”

The Group has today announced the imminent start of a shareholder consultation period regarding the possibility of taking the company private.

View the full Interim Report 2024.

*The weighted pipeline represents the annualised revenues that are expected to be delivered within the next 12 months from the business development pipeline at 30 June. These transactions are in the latter stages of conversion and therefore considered likely to move to won business.