Wednesday 15 February 2023

*UKHotViewsExtra* Endava delivers its first £200+m quarter

LogoEndava’s sprightly start to FY23 continued through the second quarter. Revenue at UK-HQ’d digital SI for the three months ended increased by 23.4% yoy at constant currency to £205.2m, all but reaching the level of the firm’s annual turnover just five years ago. Adjusted profit before tax for the period rose by 27% yoy to £41.9m with the associated margin improving sequentially by 30 bps.

Double-digit expansion was again achieved by all facets of Endava’s industry segment and regional portfolio. From a sector perspective, demand from the firm’s payments and financial services clients continued to prove robust in the most recently completed quarter with sales up by some 35% yoy to account for 53% of total revenue. In terms of geographic growth, the company’s operations in Asia-Pacific delivered the strongest top line growth performance in Q2. Turnover in this unit more than doubled yoy to over £10m, boosted by the acquisition of Melbourne-based Lexicon Digital Pty Ltd at the start of the period. Endava UK, which generates around two fifths of global revenue, kept pace with the overall business by delivering a 23% yoy increase in second quarter sales to c.£80m.

Looking ahead, Endava is anticipating a slight deceleration in the pace of expansion. At constant currency, Q3 revenue is expected to improve by between 14.0% and 15.0% yoy to land with the £201-203m range. Top line growth in FY23 is now projected to reach between 19.0% and 20.0%.

We recently caught up with Endava CEO, John Cotterell. All TechMarketView subscription clients, including UKHotViews Premium subscribers, can read more about this company’s performance and plans here: Endava delivers its first £200+m quarter

Posted by Duncan Aitchison at '08:41' - Tagged: results   systemsintegration   digital