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Thursday 18 February 2021

Endava exceeds guidance

LogoLondon HQ'd digital SI Endava picked up the pace of top line growth in the second quarter of FY21. Revenue for the three months to 31st December increased by 21.4% yoy on a constant currency basis to £105.2m exceeding the top end of the guidance issued last November (see here). Adjusted profit before tax for the period was £20.6 million. This equates to a margin of 19.6%, up 40 bps sequentially but some distance below the 23.8% figure achieved in Q220.

All facets of the business delivered substantial improvements in sales during the quarter. The most eye-catching performances, however, came from the Telecommunications, Media and Technology vertical and the European region. Both of these units saw their turnovers increase by in excess of 40% yoy. In the case of the latter, the acquisition by Endava last August of Comtrade Digital Services (CDS), a Balkan near-shore software engineering services business which generates 85% of its revenues from EU clients, was a major contributor to the Q2 result. The company’s UK sales were up c.10% to £44.2m for the period.

Looking ahead, Endava is confident that it will sustain 20%+ growth through the next two quarters. FY21 revenue is expected to land between £423m and £426m. Another impressive year for this UK tech success story appears to be on the cards.

Posted by: Duncan Aitchison at 09:13

Tags: results   systemsintegration   digital  

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