Full Year results for the year ending 31 December 2019
TP Group (AIM: TPG), the providers of mission-critical consulting, software and bespoke engineering solutions for a more secure world, announces its audited results for the year ended 31 December 2019.
Financial and operational highlights
Revenue up 49% to £58.2m (2018: £39.0m)
- Organic growth of 16% (£6.2m), with Technology & Engineering up 10%, and Consulting & Programme Services up 29%
- Added £13.0m revenues, or 33% growth, from the acquisition of Westek1 and Sapienza2
Adjusted operating profit3 up 48% to £5.9m (2018: £4.0m)
- Organic growth of £1.1m (c. 28%)
- Additional £0.8m of profit contributed by acquired companies, Westek and Sapienza
Operating losses3 £1.7m (2018: nil), include:
- Acquisition-related expenses of £1.5m (2018: £0.7m)
- Earn-out provision of £1.6m (2018: £0.6m) relating to Westek and Sapienza
Closing cash of £6.6m (2018: £22.4m)
- £7.7m cash used in the acquisition of Sapienza
- Settlement of final earn-out payments, £2.0m for Polaris4 and Westek
- £1.5m invested in AI technologies, business systems and infrastructure
Order intake £73.8m (2018: £43.2m)
- Organic growth of £8.4m (c. 20%)
- Opening order book of £15.0m acquired with Sapienza
- Additional £7.2m new orders post- acquisition from Westek and Sapienza
Group closing order book up 32% to £63.8m (2018: £48.3m)
- Organic growth of £5.5m
- Includes additional £10.0m from Sapienza
Throughout the COVID-19 outbreak we have continued to operate at a sustainable level across the whole business. Our approach has focused on:
- protecting the health and wellbeing of staff and their families
- sustaining the level of business activity on customer projects
- working with customers on renewals, extensions and new business opportunities
- managing investment in operating expenses and capital equipment where necessary
- maintaining a healthy cash balance supplemented by a new £7m banking facility
- protecting the long-term value of the business for investors
We participate in global multi-year strategic programmes with government and institutional customers committed to supporting this work. This provides assurance of our business continuity. For further details, please refer to the CFO's report below.
Despite the resilience of the business, it was deemed prudent to withdraw market forecasts given the highly uncertain impacts of COVID-19.
Phil Cartmell, Chief Executive Officer of TP Group, commented:
"I am very pleased with TP Group's performance in 2019, in which we continued to deliver excellent service to our growing global customer base, achieving our financial and strategic objectives and investing in future growth. The core business demonstrated its strength with good organic growth and we welcomed the Sapienza team to the Group to cement our role in the space industry and build our presence across Europe.
"More recently, I have been especially impressed by the resilience and commitment of our team at all levels of the business in response to the COVID-19 outbreak. The safety and wellbeing of our staff and their families is of prime importance, and the team has adapted quickly, constructively and creatively to the challenges of new working arrangements whilst keeping safe, their projects on track and supporting our customers, wherever they are in the world.
"TP Group's diverse, resilient business model and financial strength places us in a very strong position to navigate through this period of uncertainty. The Group continues to have the value streams, opportunities and capability for further development as a global services and technologies business."
Additional narrative to the results will be published in the Group's Annual Report and Accounts that will be available in due course on the Company website at:
1 Westek Technology Ltd. acquired November 2018
2 Sapienza Consulting Holdings B.V. acquired April 2019
3 Refer to the CFO Report section "Adjusted operating profit" for the bridge from operating loss to adjusted operating profit
4 Polaris Consulting Holdings Ltd. acquired December 2017
For further information, please contact:
TP Group plc
Phil Cartmell, Chief Executive Officer
Derren Stroud, Chief Financial Officer
Tel: 01753 285 810
Cenkos Securities plc
Stephen Keys / Callum Davidson / Mark Connelly
Tel: 020 7397 8980
Jeremy Garcia / Charlie Neish
Tel: 020 7390 0230
Notes to Editors
TP Group is a global leader in consulting, digital solutions and engineering services across the full lifecycle of defence, space and energy programmes. With world class innovation, expertise and experience, TP Group employs approximately 450 people in six countries, with customers in more than 30 countries. The Company's shares have been traded on AIM since July 2001.