6-K
Endava plc (DAVA)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the Month of September 2022
Commission File Number: 001-38607
ENDAVA PLC
(Name of Registrant)
125 Old Broad Street
London EC2N 1AR
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
x Form 20-F ¨ Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
EXHIBIT LIST
| Exhibit | Description |
|---|---|
| 99.1 | Press Release September 27, 2022 |
| 99.2 | Investor Presentation Q4FY22 |
Exhibit 99.1, other than the portions of Exhibit 99.1 under the caption "Outlook", is hereby expressly incorporated by reference into the registrant’s registration statement on Form S-8 filed with the Securities and Exchange Commission on December 7, 2018 (File no. 333-228717), the registrant’s registration statement on Form S-8 filed with the SEC on September 18, 2020 (File No. 333-248904), the registrant’s registration statement on Form S-8 filed with the SEC on September 30, 2021 (File No. 333-259900) and the registrant's registration statement on Form F-3 filed with the SEC on October 18, 2019 (File No. 333-229213).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| ENDAVA PLC | ||
|---|---|---|
| Date: September 27, 2022 | By: | /s/ John Cotterell |
| Name: John Cotterell | ||
| Title: Chief Executive Officer |
Document
| Q4 FY2022 & FY2022 |
|---|
ENDAVA ANNOUNCES FOURTH QUARTER FISCAL YEAR 2022 & FISCAL YEAR 2022 RESULTS
Q4 FY2022
35.0% Year on Year Revenue Growth to £180.4 million
30.9% Revenue Growth at Constant Currency
IFRS diluted EPS £0.47 compared to £0.28 in the prior year comparative period
Adjusted diluted EPS £0.51 compared to £0.41 in the prior year comparative period
FY2022
46.7%Year on Year Revenue Growth to £654.8 million
47.6% Revenue Growth at Constant Currency
IFRS diluted EPS £1.43 compared to £0.76 in the prior year comparative period
Adjusted diluted EPS £1.93 compared to £1.30 in the prior year comparative period
London, U.K. – Endava plc (NYSE: DAVA) ("Endava" or the "Company") a global provider of digital transformation, agile development and intelligent automation services, today announced results for the three months ended June 30, 2022, the fourth quarter of its 2022 fiscal year ("Q4 FY2022"), and for the fiscal year ended June 30, 2022 ("FY2022").
“Endava's strong results for Q4FY2022 and for the full FY2022 are the result of continued solid demand for our digital acceleration services across all regions and verticals, despite headwinds from continued global macro uncertainty and volatility,” said John Cotterell, Endava's CEO. “This continued customer demand flows from Endava's delivery of leading-edge innovation and trusted experience to help clients apply technology solutions to drive new strategic direction, growth and differentiated customer experiences for their businesses. Endava's revenue growth was again driven by demand from existing clients and the acquisition of new ones during the quarter, leading to a revenue increase of 30.9% in constant currency for Q4 FY2022 and 47.6% for the full fiscal year.”
FOURTH QUARTER FISCAL YEAR 2022 FINANCIAL HIGHLIGHTS:
•Revenue for Q4 FY2022 was £180.4 million, an increase of 35.0% compared to £133.6 million in the same period in the prior year.
•Revenue growth rate at constant currency (a non-IFRS measure)* was 30.9% for Q4 FY2022, compared to 54.9% in the same period in the prior year.
•Profit before tax for Q4 FY2022 was £32.5 million, compared to £18.5 million in the same period in the prior year.
| Q4 FY2022 & FY2022 |
|---|
•Adjusted profit before tax (a non-IFRS measure)* for Q4 FY2022 was £36.2 million, compared to £29.3 million in the same period in the prior year, or 20.1% of revenue, compared to 22.0% of revenue in the same period in the prior year.
•Profit for the period was £27.0 million in Q4 FY2022, resulting in a diluted EPS of £0.47, compared to profit of £16.0 million and diluted EPS of £0.28 in the same period in the prior year.
•Adjusted profit for the period (a non-IFRS measure)* was £29.3 million in Q4 FY2022, resulting in adjusted diluted EPS (a non-IFRS measure)* of £0.51, compared to adjusted profit for the period of £23.6 million and adjusted diluted EPS of £0.41 in the same period in the prior year.
FISCAL YEAR 2022 FINANCIAL HIGHLIGHTS:
•Revenue for FY2022 was £654.8 million, an increase of 46.7% compared to £446.3 million in the same period in the prior year.
•Revenue growth rate at constant currency (a non-IFRS measure)* was 47.6% for FY2022, compared to 30.4% in the same period in the prior year.
•Profit before tax for FY2022 was £102.4 million, compared to £54.4 million in the same period in the prior year.
•Adjusted profit before tax (a non-IFRS measure)* for FY2022 was £138.3 million, compared to £92.1 million in the same period in the prior year, or 21.1% of revenue, compared to 20.6% of revenue in the same period in the prior year.
•Profit for the period was £83.1 million in FY2022, resulting in a diluted EPS of £1.43, compared to profit of £43.5 million and diluted EPS of £0.76 in the same period in the prior year.
•Adjusted profit for the period (a non-IFRS measure)* was £112.0 million in FY2022, resulting in adjusted diluted EPS (a non-IFRS measure)* of £1.93, compared to adjusted profit for the period of £73.9 million and adjusted diluted EPS of £1.30 in the same period in the prior year.
CASH FLOW:
•Net cash from operating activities was £47.1 million in Q4 FY2022, compared to £34.2 million in the same period in the prior year.
| Q4 FY2022 & FY2022 |
|---|
•Adjusted free cash flow (a non-IFRS measure)* was £43.4 million in Q4 FY2022, compared to £32.6 million in the same period in the prior year.
•Net cash from operating activities was £120.7 million in FY2022, compared to £87.7 million in the same period in the prior year.
•Adjusted free cash flow (a non-IFRS measure)* was £107.2 million in FY2022, compared to £82.7 million in the same period in the prior year.
•At June 30, 2022, Endava had cash and cash equivalents of £162.8 million, compared to £69.9 million at June 30, 2021.
* Definitions of the non-IFRS measures used by the Company and a reconciliation of such measures to the related IFRS financial measure can be found under the sections below titled “Non-IFRS Financial Information” and “Reconciliation of IFRS Financial Measures to Non-IFRS Financial Measures.”
OTHER METRICS FOR THE QUARTER ENDED JUNE 30, 2022:
•Headcount reached 11,853 at June 30, 2022, with 10,468 average operational employees in Q4 FY2022, compared to a headcount of 8,883 at June 30, 2021 and 7,872 average operational employees in the same quarter of the prior year.
•Number of clients with over £1 million in revenue on a rolling twelve months basis was 134 at June 30, 2022, compared to 85 at June 30, 2021.
•Top 10 clients accounted for 32% of revenue in Q4 FY2022, compared to 36% in the same period in the prior year.
•By geographic region, 35% of revenue was generated in North America, 22% was generated in Europe, 40% was generated in the United Kingdom and 3% was generated in the rest of the world in Q4 FY2022. This compares to 37% in North America, 21% in Europe, 40% in the United Kingdom and 2% in the rest of the world in the same period in the prior year.
•By industry vertical, 51% of revenue was generated from Payments and Financial Services, 25% from TMT and 24% from Other in Q4 FY2022. This compares to 51% from Payments and Financial Services, 25% from TMT and 24% from Other in the same period in the prior year.
OTHER METRICS FOR THE FISCAL YEAR ENDED JUNE 30, 2022:
•Top 10 clients accounted for 34% of revenue in FY2022, compared to 35% in the same period in the prior year.
| Q4 FY2022 & FY2022 |
|---|
•By geographic region, 35% of revenue was generated in North America, 21% was generated in Europe, 41% was generated in the United Kingdom and 3% was generated in the rest of the world in FY2022. This compares to 31% in North America, 24% in Europe, 42% in the United Kingdom and 3% in the rest of the world in the same period in the prior year.
•By industry vertical, 51% of revenue was generated from Payments and Financial Services, 25% from TMT and 24% from Other in FY2022. This compares to 51% from Payments and Financial Services, 27% from TMT and 22% from Other in the same period in the prior year.
OUTLOOK:
First Quarter Fiscal Year 2023:
Endava expects revenues will be in the range £191.0 million to £193.0 million, representing constant currency revenue growth of between 22.0% and 24.0%. Endava expects adjusted diluted EPS to be in the range of £0.50 to £0.51 per share.
Full Fiscal Year 2023:
Endava expects revenues will be in the range of £840.0 million to £850.0 million, representing constant currency growth of between 23.0% and 24.0%. Endava expects adjusted diluted EPS to be in the range of £2.35 to £2.38 per share.
This above guidance for Q1 Fiscal Year 2023 and the Full Fiscal Year 2023 assumes the exchange rates at the end of August 2022 (when the exchange rate was 1 British Pound to 1.17 US Dollar and 1.16 Euro).
Endava is not able, at this time, to provide an outlook for IFRS diluted EPS for Q1 FY2023 or FY2023 because of the unreasonable effort of estimating on a forward-looking basis certain items that are excluded from adjusted diluted EPS, including, for example, share-based compensation expense, amortisation of acquired intangible assets and foreign currency exchange (gains)/losses, the effect of which may be significant. Endava is also not able, at this time, to reconcile to an outlook for revenue growth not at constant currency because of the unreasonable effort of estimating foreign currency exchange (gains)/losses, the effect of which may be significant, on a forward-looking basis.
| Q4 FY2022 & FY2022 |
|---|
The guidance provided above is forward-looking in nature. Actual results may differ materially. See the cautionary note regarding “Forward-Looking Statements” below.
ANNUAL REPORT ON FORM 20-F:
As at the date of this release, the audit of the Company is not yet complete and therefore the Company has not filed its Annual Report on Form 20-F (“Annual Report”). The delay in completion is due to additional audit work being performed by our auditors, KPMG LLP, to address a PCAOB registration issue in respect of KPMG Audit SRL, a KPMG member firm in Romania, which played a substantial role in KPMG LLP’s audit of the Company’s annual report in fiscal year 2020. As the fiscal year 2020 figures are included in the Annual Report, it will be filed upon completion of this work, which is anticipated to be by the filing deadline of October 31, 2022. Neither the Company nor KPMG LLP has any reason to believe that the performance of additional procedures would result in any material adjustments to the previously issued financial statements.
CONFERENCE CALL DETAILS:
The Company will host a conference call at 8:00 am EST today, September 27, 2022, to review its Q4 FY2022 & FY2022 results. To participate in Endava’s Q4 FY2022 & FY2022 earnings conference call, please dial in at least five minutes prior to the scheduled start time (877) 270-2148 or (412) 902-6510 for international participants, Conference ID: Endava Call
Investors may listen to the call on Endava’s Investor Relations website at http://investors.Endava.com. The webcast will be recorded and available for replay until Tuesday, October 25, 2022.
| Q4 FY2022 & FY2022 |
|---|
ABOUT ENDAVA PLC:
Endava is reimagining the relationship between people and technology. By leveraging next-generation technologies, our agile, multi-disciplinary teams provide a combination of product & technology strategies, intelligent experiences, and world class engineering to help clients become digital, experience-driven businesses by assisting them in their journey from idea generation to development and deployment of products, platforms and solutions. Endava collaborates with its clients, seamlessly integrating with their teams, catalysing ideation and delivering robust solutions.
Endava services clients in Payments and Financial Services, TMT, Consumer Products, Retail, Mobility and Healthcare. As of June 30, 2022, 11,853 Endavans served clients from locations in Asia-Pacific, Middle East, North America and Western Europe and delivery locations in Argentina, Bosnia & Herzegovina, Bulgaria, Colombia, Croatia, Malaysia, Mexico, Moldova, North Macedonia, Poland, Romania, Serbia, Slovenia and Uruguay.
NON-IFRS FINANCIAL INFORMATION:
To supplement Endava’s Consolidated Statements of Comprehensive Income, Consolidated Balance Sheets and Consolidated Statements of Cash Flow presented in accordance with IFRS, the Company uses non-IFRS measures of certain components of financial performance. These measures include: revenue growth rate at constant currency, revenue growth at constant currency adjusted for the sale of Endava Technology SRL, also referred to as “the Worldpay Captive,” to Worldpay on August 31, 2019, adjusted profit before tax, adjusted profit for the period, adjusted diluted EPS and adjusted free cash flow.
Revenue growth rate at constant currency is calculated by translating revenue from entities reporting in foreign currencies into British Pounds using the comparable foreign currency exchange rates from the prior period. For example, the average rates in effect for the fiscal quarter ended June 30, 2021 were used to convert revenue for the fiscal quarter ended June 30, 2022 and the revenue for the comparable prior period.
Revenue growth at constant currency adjusted for the sale of the Worldpay Captive is revenue growth at constant currency adjusted to exclude the impact of the sale of the Worldpay Captive.
| Q4 FY2022 & FY2022 |
|---|
Adjusted profit before tax ("Adjusted PBT") is defined as the Company’s profit before tax adjusted to exclude the impact of share-based compensation expense, amortisation of acquired intangible assets and, realised and unrealised foreign currency exchange (gains)/losses, all of which are non-cash items. Adjusted PBT margin is Adjusted PBT as a percentage of total revenue.
Adjusted profit for the period is defined as Adjusted PBT together with the tax impact of these adjustments.
Adjusted diluted EPS is defined as Adjusted profit for the period, divided by weighted average number of shares outstanding - diluted.
Adjusted free cash flow is the Company’s net cash from operating activities, plus grants received, less net purchases of non-current assets (tangible and intangible).
Management believes these measures help illustrate underlying trends in the Company's business and uses the measures to establish budgets and operational goals, communicated internally and externally, for managing the Company's business and evaluating its performance. Management also believes the presentation of its non-IFRS financial measures enhances an investor’s overall understanding of the Company’s historical financial performance. The presentation of the Company’s non-IFRS financial measures is not meant to be considered in isolation or as a substitute for the Company’s financial results prepared in accordance with IFRS, and its non-IFRS measures may be different from non-IFRS measures used by other companies. Investors should review the reconciliation of the Company’s non-IFRS financial measures to the comparable IFRS financial measures included below, and not rely on any single financial measure to evaluate the Company’s business.
U.K. STATUTORY ACCOUNTS:
The financial information set out in this press release does not constitute the Company's statutory accounts as defined in section 434 of the Companies Act 2006 for the years ended June 30, 2022 or June 30, 2021. Statutory accounts for the year ended June 30, 2021 have been delivered to the Registrar of Companies and statutory accounts for the year ended June 30, 2022 will be delivered to the Registrar of Companies after the annual general meeting of the Company to be held in 2022. The auditor has reported on the statutory accounts for the year
| Q4 FY2022 & FY2022 |
|---|
ended June 30, 2021; their report was (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006. All financial information contained in this announcement in respect of the year ended June 30, 2022 is unaudited.
FORWARD-LOOKING STATEMENTS:
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by the use of terms and phrases such as “believe,” “expect,” "outlook," “may,” “will,” and other similar terms and phrases. Such forward-looking statements include, but are not limited to, the statements regarding Endava’s projected financial performance for the first fiscal quarter of fiscal year 2023 and the full fiscal year 2023, the anticipated timing of the filing of its Annual Report with the U.S. Securities and Exchange Commission ("SEC") and the potential impact any additional audit procedures on current and prior fiscal year results. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: Endava’s business, results of operations and financial condition may be negatively impacted by the COVID-19 pandemic and the Russia-Ukraine armed conflict or if general economic conditions in Europe, the United States or the global economy worsen; Endava’s ability to manage its rapid growth or achieve anticipated growth; Endava’s ability to retain existing clients and attract new clients, including its ability to increase revenue from existing clients and diversify its revenue concentration; Endava’s ability to attract and retain highly-skilled IT professionals at cost-effective rates; Endava's ability to penetrate new industry verticals and geographies and grow its revenue in current industry verticals and geographies; Endava’s ability to maintain favorable pricing and utilization rates; Endava’s ability to successfully identify acquisition targets, consummate acquisitions and successfully integrate acquired businesses and personnel; the effects of increased competition as well as innovations by new and existing competitors in its market; Endava’s ability to adapt to technological change and innovate solutions for its clients; Endava’s ability to collect on billed and unbilled receivables from clients; Endava’s ability to effectively manage its international operations, including Endava's exposure to foreign currency exchange rate fluctuations; Endava’s ability to maintain an effective system of disclosure controls and internal control over financial reporting; and Endava’s future financial performance, including trends in revenue, cost of sales, gross profit,
| Q4 FY2022 & FY2022 |
|---|
selling, general and administrative expenses, finance income and expense and taxes, as well as other risks and uncertainties discussed in the “Risk Factors” section of our Annual Report filed with the SEC on September 28, 2021, as well as in any subsequent filings Endava may make with the SEC. In addition, the forward-looking statements included in this press release represent Endava’s views and expectations as of the date hereof and are based on information currently available to Endava. Endava anticipates that subsequent events and developments may cause its views to change. Endava specifically disclaims any obligation to update the forward-looking statements in this press release except as required by law. These forward-looking statements should not be relied upon as representing Endava’s views as of any date subsequent to the date hereof.
INVESTOR CONTACT:
Endava Plc
Laurence Madsen, Investor Relations Manager
Investors@endava.com
| Q4 FY2022 & FY2022 |
|---|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
| Twelve Months Ended June 30 | Three Months Ended June 30 | |||
|---|---|---|---|---|
| 2022 | 2021(1) | 2022 | 2021(1) | |
| £’000 | £’000 | £’000 | £’000 | |
| REVENUE | 654,757 | 446,298 | 180,404 | 133,622 |
| Cost of sales | ||||
| Direct cost of sales | (414,411) | (271,707) | (117,027) | (82,052) |
| Allocated cost of sales | (22,415) | (20,412) | (5,618) | (5,879) |
| Total cost of sales | (436,826) | (292,119) | (122,645) | (87,931) |
| GROSS PROFIT | 217,931 | 154,179 | 57,759 | 45,691 |
| Selling, general and administrative expenses | (121,808) | (90,623) | (32,195) | (27,207) |
| Net impairment (losses) / gains on financial assets | (739) | (4) | 1,087 | 1,317 |
| OPERATING PROFIT | 95,384 | 63,552 | 26,651 | 19,801 |
| Net Finance income / (expense) | 6,995 | (9,184) | 5,840 | (1,263) |
| PROFIT BEFORE TAX | 102,379 | 54,368 | 32,491 | 18,538 |
| Tax on profit on ordinary activities | (19,286) | (10,918) | (5,452) | (2,581) |
| PROFIT FOR THE PERIOD | 83,093 | 43,450 | 27,039 | 15,957 |
| OTHER COMPREHENSIVE INCOME | ||||
| Items that may be reclassified subsequently to profit or loss: | ||||
| Exchange differences on translating foreign operations | 6,580 | (9,782) | 5,392 | (270) |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF THE PARENT | 89,673 | 33,668 | 32,431 | 15,687 |
| EARNINGS PER SHARE (EPS): | ||||
| Weighted average number of shares outstanding - Basic | 56,272,036 | 55,220,298 | 56,680,204 | 55,637,037 |
| Weighted average number of shares outstanding - Diluted | 58,018,200 | 57,050,613 | 57,974,389 | 57,549,709 |
| Basic EPS (£) | 1.48 | 0.79 | 0.48 | 0.29 |
| Diluted EPS (£) | 1.43 | 0.76 | 0.47 | 0.28 |
| Q4 FY2022 & FY2022 | ||||
| --- |
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
| June 30, 2022 | June 30, 2021(2) | |
|---|---|---|
| £’000 | £’000 | |
| ASSETS - NON-CURRENT | ||
| Goodwill | 145,916 | 126,142 |
| Intangible assets | 56,189 | 62,256 |
| Property, plant and equipment | 21,260 | 13,324 |
| Lease right-of-use assets | 50,818 | 57,193 |
| Deferred tax assets | 17,218 | 20,080 |
| Financial assets | 2,276 | 363 |
| TOTAL | 293,677 | 279,358 |
| ASSETS - CURRENT | ||
| Trade and other receivables | 162,671 | 118,303 |
| Corporation tax receivable | 2,309 | 938 |
| Financial assets | 392 | 563 |
| Cash and cash equivalents | 162,806 | 69,884 |
| TOTAL | 328,178 | 189,688 |
| TOTAL ASSETS | 621,855 | 469,046 |
| LIABILITIES - CURRENT | ||
| Lease liabilities | 11,898 | 13,543 |
| Trade and other payables | 98,252 | 78,528 |
| Corporation tax payable | 3,477 | 4,294 |
| Contingent consideration | 4,183 | 5,718 |
| Deferred consideration | 10,604 | 673 |
| TOTAL | 128,414 | 102,756 |
| LIABILITIES - NON CURRENT | ||
| Lease liabilities | 43,999 | 50,142 |
| Contingent consideration | 4,331 | — |
| Deferred tax liabilities | 10,826 | 10,124 |
| Deferred consideration | 1,062 | 9,370 |
| Other liabilities | 500 | 205 |
| TOTAL | 60,718 | 69,841 |
| EQUITY | ||
| Share capital | 1,135 | 1,114 |
| Share premium | 9,152 | 247 |
| Merger relief reserve | 30,003 | 30,003 |
| Retained earnings | 398,102 | 278,839 |
| Other reserves | (5,514) | (13,599) |
| Investment in own shares | (155) | (155) |
| TOTAL | 432,723 | 296,449 |
| TOTAL LIABILITIES AND EQUITY | 621,855 | 469,046 |
| Q4 FY2022 & FY2022 | ||
| --- |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
| Twelve Months Ended June 30 | Three Months Ended June 30 | |||
|---|---|---|---|---|
| 2022 | 2021(3) | 2022 | 2021(3) | |
| £’000 | £’000 | £’000 | £’000 | |
| OPERATING ACTIVITIES | ||||
| Profit for the period | 83,093 | 43,450 | 27,039 | 15,957 |
| Income tax charge | 19,286 | 10,918 | 5,452 | 2,581 |
| Non-cash adjustments | 53,799 | 54,850 | 7,571 | 15,762 |
| Tax paid | (14,033) | (3,120) | (4,846) | (2,332) |
| UK research and development credit received | 344 | 2,930 | 344 | — |
| Net changes in working capital | (21,770) | (21,360) | 11,552 | 2,266 |
| Net cash from operating activities | 120,719 | 87,668 | 47,112 | 34,234 |
| INVESTING ACTIVITIES | ||||
| Purchase of non-current assets (tangibles and intangibles) | (13,967) | (5,429) | (3,772) | (1,677) |
| Proceeds from disposal of non-current assets | 272 | 193 | 31 | 43 |
| Payment for acquisition of subsidiary, net of cash acquired | (10,364) | (101,258) | (229) | (38,038) |
| Interest received | 184 | 84 | 119 | 8 |
| Net cash used in investing activities | (23,875) | (106,410) | (3,851) | (39,664) |
| FINANCING ACTIVITIES | ||||
| Proceeds from sublease | 560 | 565 | 142 | 141 |
| Repayment of lease liabilities | (13,805) | (11,828) | (3,337) | (3,386) |
| Interest paid | (885) | (911) | (190) | (237) |
| Grant received/(paid) | 139 | 228 | 49 | (39) |
| Issue of shares | 8,913 | 26 | 1,547 | 17 |
| Net cash (used in)/from financing activities | (5,078) | (11,920) | (1,789) | (3,504) |
| Net change in cash and cash equivalents | 91,766 | (30,662) | 41,472 | (8,934) |
| Cash and cash equivalents at the beginning of the period | 69,884 | 101,327 | 120,407 | 78,836 |
| Exchange differences on cash and cash equivalents | 1,156 | (781) | 927 | (18) |
| Cash and cash equivalents at the end of the period | 162,806 | 69,884 | 162,806 | 69,884 |
| Q4 FY2022 & FY2022 | ||||
| --- |
RECONCILIATION OF IFRS FINANCIAL MEASURES TO NON-IFRS FINANCIAL MEASURES (unaudited)
RECONCILIATION OF REVENUE GROWTH RATE AS REPORTED UNDER IFRS TO REVENUE GROWTH RATE AT CONSTANT CURRENCY:
| Twelve Months ended June 30 | Three Months ended June 30 | |||||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||
| REVENUE GROWTH RATE AS REPORTED UNDER IFRS | 46.7 | % | 27.2 | % | 35.0 | % | 47.7 | % |
| Foreign exchange rates impact | 0.9 | % | 2.4 | % | (4.1 | %) | 7.2 | % |
| REVENUE GROWTH RATE AT CONSTANT CURRENCY INCLUDING WORLDPAY CAPTIVE | 47.6 | % | 29.6 | % | 30.9 | % | 54.9 | % |
| Impact of Worldpay Captive | — | 0.8 | % | — | — | |||
| PRO-FORMA REVENUE GROWTH RATE AT CONSTANT CURRENCY ADJUSTED FOR THE SALE OF THE WORLDPAY CAPTIVE | 47.6 | % | 30.4 | % | 30.9 | % | 54.9 | % |
RECONCILIATION OF ADJUSTED PROFIT BEFORE TAX AND ADJUSTED PROFIT FOR THE PERIOD:
| Twelve Months Ended June 30 | Three Months Ended June 30 | |||
|---|---|---|---|---|
| 2022 | 2021(4) | 2022 | 2021(4) | |
| £’000 | £’000 | £’000 | £’000 | |
| PROFIT BEFORE TAX | 102,379 | 54,368 | 32,491 | 18,538 |
| Adjustments: | ||||
| Share-based compensation expense | 35,005 | 24,427 | 7,463 | 6,909 |
| Amortisation of acquired intangible assets | 10,823 | 6,725 | 3,077 | 3,380 |
| Foreign currency exchange (gains) / losses, net | (9,944) | 6,546 | (6,785) | 515 |
| Total adjustments | 35,884 | 37,698 | 3,755 | 10,804 |
| ADJUSTED PROFIT BEFORE TAX | 138,263 | 92,066 | 36,246 | 29,342 |
| PROFIT FOR THE PERIOD | 83,093 | 43,450 | 27,039 | 15,957 |
| Adjustments: | ||||
| Adjustments to profit before tax | 35,884 | 37,698 | 3,755 | 10,804 |
| Tax impact of adjustments | (6,933) | (7,241) | (1,448) | (3,158) |
| ADJUSTED PROFIT FOR THE PERIOD | 112,044 | 73,907 | 29,346 | 23,603 |
| Diluted EPS (£) | 1.43 | 0.76 | 0.47 | 0.28 |
| Adjusted diluted EPS (£) | 1.93 | 1.30 | 0.51 | 0.41 |
| Q4 FY2022 & FY2022 | ||||
| --- |
RECONCILIATION OF NET CASH FROM OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW
| Twelve Months Ended June 30 | Three Months Ended June 30 | |||
|---|---|---|---|---|
| 2022 | 2021(5) | 2022 | 2021(5) | |
| £’000 | £’000 | £’000 | £’000 | |
| Net cash from operating activities | 120,719 | 87,668 | 47,112 | 34,234 |
| Adjustments: | ||||
| Grant received | 139 | 228 | 49 | (39) |
| Purchases of non-current assets (tangibles and intangibles) | (13,695) | (5,236) | (3,741) | (1,634) |
| Adjusted Free cash flow | 107,163 | 82,660 | 43,420 | 32,561 |
| Q4 FY2022 & FY2022 | ||||
| --- |
SUPPLEMENTARY INFORMATION (unaudited)
SHARE-BASED COMPENSATION EXPENSE
| Twelve Months Ended June 30 | Three Months Ended June 30 | |||
|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |
| £’000 | £’000 | £’000 | £’000 | |
| Direct cost of sales | 21,899 | 14,760 | 4,878 | 4,246 |
| Selling, general and administrative expenses | 13,106 | 9,667 | 2,585 | 2,663 |
| Total | 35,005 | 24,427 | 7,463 | 6,909 |
DEPRECIATION AND AMORTISATION
| Twelve Months Ended June 30 | Three Months Ended June 30 | |||
|---|---|---|---|---|
| 2022 | 2021(6) | 2022 | 2021(6) | |
| £’000 | £’000 | £’000 | £’000 | |
| Direct cost of sales | 16,142 | 15,575 | 3,971 | 4,234 |
| Selling, general and administrative expenses | 12,827 | 8,872 | 3,273 | 3,725 |
| Total | 28,969 | 24,447 | 7,244 | 7,959 |
EMPLOYEES, TOP 10 CUSTOMERS AND REVENUE SPLIT
| Six Months Ended December 31 | Twelve Months Ended June 30 | Three Months Ended June 30 | ||
|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |
| Closing number of total employees (including directors) | 11,853 | 8,883 | 11,853 | 8,883 |
| Average operational employees | 9,492 | 6,943 | 10,468 | 7,872 |
| Top 10 customers % | 34% | 35% | 32% | 36% |
| Number of clients with > £1m of revenue<br>(rolling 12 months) | 134 | 85 | 134 | 85 |
| Geographic split of revenue % | ||||
| North America | 35% | 31% | 35% | 37% |
| Europe | 21% | 24% | 22% | 21% |
| UK | 41% | 42% | 40% | 40% |
| Rest of World (RoW) | 3% | 3% | 3% | 2% |
| Industry vertical split of revenue % | ||||
| Payments and Financial Services | 51% | 51% | 51% | 51% |
| TMT | 25% | 27% | 25% | 25% |
| Other | 24% | 22% | 24% | 24% |
| Q4 FY2022 & FY2022 | ||||
| --- |
FOOTNOTES
(1) (3) (4) (5) (6) The Condensed Consolidated Statements of Comprehensive Income, Condensed Consolidated Statement of Cash Flows, Reconciliation of Adjusted Profit before Tax, Adjusted Profit and Reconciliation of Net Cash from Operating Activities to Adjusted Free Cash Flow as of 30 June 2021 have been restated to include the effect of IFRIC agenda decision on cloud configuration and customisation costs.
In 2021, IFRIC issued an agenda decision on configuration and customisation costs in a cloud-computing arrangement. In response, Endava's accounting policy on intangible assets has been updated, specifically to expense costs incurred in the implementation of business systems built upon software that is contracted on a SaaS basis and hosted in a public cloud where these do not give rise to an identifiable intangible asset that Endava controls. This change in accounting policy is applied retrospectively. Endava's most significant configuration and customisation costs were incurred in the fiscal years 2017 to 2020, when Oracle ERP system was implemented.
(2) The Condensed Consolidated Balance Sheet as of 30 June 2021 has been restated to include the effects of IFRIC agenda decision on cloud configuration and customisation costs and to include the effect of revisions arising from provisional to final acquisition accounting for Five and Levvel.
16
ir_q4fy22x22sep22
Q4 FY2022 INVESTOR PRESENTATION
2 This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation, other than statements of historical facts, are forward-looking statements. The words “believe,” “estimate,” “expect,” “may,” “will” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, the statements regarding our business strategy and our plans and objectives for future operations, our addressable market, potential technological disruptions, and client demand for our services. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: our business, results of operations and financial condition may be negatively impacted by the COVID-19 pandemic and the conflict between Russia and Ukraine or if general economic conditions in Europe, the United States or the global economy worsen; our ability to manage our rapid growth or achieve anticipated growth; our ability to retain existing clients and attract new clients, including our ability to increase revenue from existing clients and diversify our revenue concentration; our ability to attract and retain highly-skilled IT professionals at cost-effective rates; our ability to penetrate new industry verticals and geographies and grow our revenue in current industry verticals and geographies; our ability to maintain favourable pricing and utilisation rates; our ability to successfully identify acquisition targets, consummate acquisitions and successfully integrate acquired businesses and personnel; the effects of increased competition as well as innovations by new and existing competitors in our market; our ability to adapt to technological change and innovate solutions for our clients; our ability to collect on billed and unbilled receivables from clients; our ability to effectively manage our international operations, including our exposure to foreign currency exchange rate fluctuations; our ability to remediate the identified material weaknesses and maintain an effective system of disclosure controls and internal control over financial reporting and our future financial performance, including trends in revenue, cost of sales, gross profit, selling, general and administrative expenses, finance income and expense and taxes, as well as other risks and uncertainties discussed in the “Risk Factors” sections of our Annual Report filed with the Securities and Exchange Commission (the “SEC”) on September 28, 2021, as well as in any subsequent filings we may make with the SEC. Except as required by law, we assume no duty to update any of these forward-looking statements after the date of this presentation to conform these statements to actual results or revised expectations. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this presentation. Moreover, except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements contained in this presentation. This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Neither we nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to update such data after the date of this presentation. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk. By attending or receiving this presentation you acknowledge that you will be solely responsible for your own assessment of the market and our market position and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of our business. This presentation includes non-IFRS financial measures which have certain limitations and should not be considered in isolation, or as alternatives to or substitutes for, financial measures determined in accordance with IFRS. The non-IFRS measures as defined by us may not be comparable to similar non-IFRS measures presented by other companies. Our presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that our future results will be unaffected by these or other unusual or non-recurring items. See the IFRS to Non-IFRS Reconciliation section for a reconciliation of these non-IFRS financial measures to the most directly comparable IFRS financial measures. Disclaimer
REIMAGINING THE RELATIONSHIP BETWEEN PEOPLE & TECHNOLOGY 3
We accelerate our clients’ ability to take advantage of new business models and market opportunities by ideating and delivering dynamic platforms and intelligent digital experiences that are designed to fuel rapid, ongoing transformation of their businesses. By leveraging next-generation technologies, our agile, multi-disciplinary teams provide a combination of Product & Technology Strategies, Intelligent Experiences, and World Class Engineering to help our clients become more engaging, responsive, and efficient. REIMAGINING THE RELATIONSHIP BETWEEN PEOPLE & TECHNOLOGY 4
5 1 Opportunity & Approach Q4 FY2022
6 WE ARE A LEADING NEXT-GEN TECHNOLOGY SERVICES PROVIDER AND HELP ACCELERATE DISRUPTION BY DELIVERING RAPID EVOLUTION TO ENTERPRISES. OUR PEOPLE SYNTHESIZE CREATIVITY, TECHNOLOGY, AND DELIVERY AT SCALE IN MULTI-DISCIPLINARY TEAMS, ENABLING US TO SUPPORT OUR CLIENTS FROM IDEATION TO PRODUCTION. FROM PROOF OF CONCEPT, TO PROTOTYPE, TO PRODUCTION, WE USE OUR ENGINEERING EXPERTISE TO DELIVER ENTERPRISE PRODUCTS AND PLATFORMS CAPABLE OF HANDLING MILLIONS OF TRANSACTIONS PER DAY. IN THIS NEW REALITY, WE’LL BUILD THE EXPERIENCES, TECHNICAL SCAFFOLDING, AND INFRASTRUCTURE DESIGNED TO ENABLE AN ENTIRELY NEW SET OF INTERACTIONS BETWEEN PEOPLE AND TECHNOLOGY. We enable change AS A RESULT OF THE RAPID SOCIAL CHANGES THE WORLD HAS BEEN FORCED TO ADAPT OVER THE LAST SEVERAL YEARS, BUSINESSES HAVE HAD TO SWIFTLY EVOLVE TO ENSURE THEY COULD CONTINUE TO OPERATE, WHILE MEETING A VERY DIFFERENT SET OF CUSTOMER EXPECTATIONS. IN THIS NEW REALITY, AN ORGANISATION’S ABILITY TO OPERATE PRIMARILY IN A DIGITAL LANDSCAPE MAY DICTATE ITS ABILITY TO BOTH SURVIVE AND SUCCEED. WE BELIEVE, MOVING FORWARD, TRUE DIGITAL TRANSFORMATION AND THE ESTABLISHMENT OF A FLEXIBLE BUSINESS MODEL WILL BECOME MISSION CRITICAL FOR BUSINESSES. The new reality
LARGE AND FAST GROWING MARKET OPPORTUNITY DELIVER RAPID EVOLUTION BY COMBINING NEXT-GEN TECHNOLOGIES WITH DEEP INDUSTRY EXPERTISE STRONG GROWTH AND FINANCIAL PERFORMANCE IDEATION TO PRODUCTION CAPABILITIES, DISTRIBUTED AGILE AT SCALE, DOMAIN EXPERTISE AND NEAR-SHORE LOCATIONS FOUNDER-LED, EXPERIENCED MANAGEMENT TEAM WITH STRONG CULTURE 7
8 TRADITIONAL IT SERVICES BUS. & TECH CONSULTANTS ENGINEERING ENTERPRISE AGILE AUTOMATION NEXT-GEN TECH STRATEGY USER EXPERIENCE DIGITAL AGENCIES
We serve a large addressable market. * IDC Worldwide Digital Transformation Spending Guide, May 2022 update. 16.6 % FOR DIGITAL TRANSFORMATION INVESTMENTS 9 $1.8T 2021 - 2025 CAGR 2022 FORECAST
10 ENDAVANS BY GEOGRAPHY FY19 FY20 FY21 FY22 Western Europe 254 448 493 602 Central Europe - EU Countries 3,062 3,368 4,469 6,093 3,316 3,816 4,962 6,695 Central Europe - Non-EU Countries 1,583 1,810 2,361 2,842 Latin America 780 895 1,244 1,927 North America 75 103 311 348 APAC 5 38 Middle East 3 5,754 6,624 8,883 11,853 Our people are at the heart of who we are and drive our success as a business. We enable Endavans to be the best they can be, through our positive working experience ensuring everyone feels respected, included, and connected to our culture. 11,853 GLOBAL EMPLOYEES AS OF JUN 30, 2022 33.4% EMPLOYEE GROWTH Q4FY22 VS Q4FY21 36% WOMEN IN TOTAL STAFF AS OF JUN 30, 2022 16%3% 24% 57% EUROPEAN UNION EUROPE NON-EU NORTH AMERICA LATIN AMERICA APAC & MIDDLE EAST Q4FY22 ENDAVANS BY REGION < 1%
11 CLOSE TO CLIENT Australia Austria Canada Denmark Germany Ireland Netherlands Singapore Switzerland United Kingdom United Arab Emirates United States NEARSHORE LOCATIONS European Union: Bulgaria, Croatia, Poland, Romania and Slovenia Central Europe: Bosnia & Herzegovina, Moldova, North Macedonia and Serbia Latin America: Argentina, Colombia, Mexico and Uruguay Asia Pacific: Malaysia 59 cities 26 countries
HISTORY OF ENDAVA 11,853 FOUNDED IN COMPUDAVA ALPHEUS NICKELFISH PS TECH ISDC EXPAND TO CE VELOCITY PARTNERSCONCISE UK IT CONSULTANCY 60 240 1,000 2000 2022 EXPAND TO USA EXPAND TO LATAM IPO NYSE JULY 2018 MOLDOVA NEARSHORE LOCATION GERMANY CONSULTING BUSINESS USA DIGITAL, UX & STRATEGY FIRM USA & LATAM NA SALES & LATAM DELIVERY SERBIA AGILE DELIVERY NETHERLANDS & CE AGILE DELIVERY 2,000 BAIN PARTNERSHIP ANNOUNCED HEADCOUNT Q4 FY22 INTUITUS UK IT CONSULTANCY PRIVATE EQUITY EXOZET GERMANY DIGITAL AGENCY 12 COMTRADE DIGITAL SERVICES ADRIATIC REGION SOFTWARE ENGINEERING SERVICES FIVE USA, CROATIA DIGITAL AGENCY LEVVEL USA TECH STRATEGY CONSULTING & ENGINEERING 5,000
13 WE CREATE VALUE THROUGH THE DELIVERY OF
14 BUSINESS ANALYSIS DATA & ANALYTICS DIGITAL PRODUCT STRATEGY PE DIGITAL & IT ADVISORY PROGRAMME MANAGEMENT TECHNOLOGY STRATEGY AUTOMATED TESTING. CLOUD NATIVE SOFTWARE ENG. CONTINUOUS DELIVERY . DISTRIBUTED AGILE DELIVERY INTELLIGENT AUTOMATION SECURE DEVELOPMENT AGILE APPLICATIONS MGMT CLOUD INFRASTRUCTURE DEVSECOPS SERVICE DELIVERY SMART DESK TELEMETRY & MONITORING ARCHITECTURE EXTENDED REALITY MACHINE LEARNING & AI PRODUCT DESIGN USER EXPERIENCE DESIGN VISUAL DESIGN
15 TODAY TIME TECHNOLOGY DISRUPTION WAVES & CONVERGENCE MOBILITY PAYMENTS RETAIL / CPG CAPITAL MARKETS HEALTHTECH INSURANCE
2012 2017 NOW 2030 2040+20352025 PAYMENTS INDUSTRY TRENDS OPEN BANKING REAL TIME PAYMENTS CRYPTO WALLETS INSTANT/DIGITAL ISSUING EMBEDDED FINANCE DLT IN CROSS BORDER PAYMENTS CLOSED LOOP PAYMENT ECOSYSTEM ISO 20022 ADOPTION VERTICALLY-INTEGRATED PAYMENTS CROSS BORDER PAYMENTS MICROPAYMENTS BNPL BIOMETRIC PAYMENTS CDBC IN CAR PAYMENTS PAYMENTS IN METAVERSE ALL PAYMENTS INSTANT NO-CASH SOCIETY ZERO FRAUD PAYMENTS NO PHYSICAL TERMINAL FREE PAYMENTS PAAS SOFTPOS FREE ACQUIRING REQUEST TO PAY VARIABLE DIRECT DEBIT
2012 2017 NOW 2030 2040+20352025 AUTOMOTIVE INDUSTRY TRENDS FUEL ECONOMY INDIVIDUAL CAR LEASING APPLE CARPLAY ANDROID AUTO SEMI-AUTONOMOUS DRIVING AIDS CAR SUBSCRIPTION USAGE-SPECIFIC INSURANCE INTELLIGENT ROUTING PARKING, TRAFFIC JAM 5G NEW ( INDUCTIVE) CHARGING INFRASTRUCTURE DIGITAL SALES PROCESS USING AR AND VR IN-CAR ENTERTAINMENT MEDIA IN-CAR PAYMENTS FOR ELECTRICITY, PARKING, TOLLS PAYMENTS PROPRIETARY AUTOMOTIVE OS CONNECTED TO MOBILE PHONE DEALERSHIPS EXPERIENCE CENTERS CAR-SHARING IN-CAR COMMERCE RETAIL RIDE-HAILING (UBER) RISING ADOPTION OF PLUG-IN HYBRID EV CONNECTED TO SMART CITIES “HANDS OFF, MIND OFF” RISING ADOPTION OF BATTERY EV ELECTRIC-ONLY DRIVE ZONES IN CITIES VEHICLE COMMUNICATION P2P CAR-SHARING AUTONOMOUS TRAFFIC MANAGEMENT ROBOTAXIS ZERO EMISSIONS ZERO ACCIDENTS
18 AS WE STRIVE TO BE THE ASPIRATIONAL BRAND FOR IT PROFESSIONALS IN THE REGIONS IN WHICH WE OPERATE, WE ATTRACT HIGH QUALITY TALENT. TO SUPPORT THIS GROWTH, WE NEED LEADERSHIP AND HAVE DEVELOPED THE ‘PASS IT ON’ INITIATIVE WHICH DRIVES LOYALTY AND LOWERS ATTRITION. WE USE TUCK-IN ACQUISITIONS TO ACCELERATE OUR GROWTH STRATEGY - TO EITHER ESTABLISH OURSELVES IN A NEW GEO OR TO ESTABLISH A NEW AREA OF EXPERTISE AND MARKET GROWTH. BRAND CULTURE M&A Scalability
19 ENDAVA’S FIVE KEY SUSTAINABILITY FOCUS AREAS
20 KEY SUSTAINABILITY COMMITMENTS OUR PEOPLE SOCIAL IMPACT OPERATING RESPONSIBILITY INNOVATION & DATA INTEGRITY ENVIRONMENTAL IMPACT We enable our people to be the best they can be by fostering an inclusive culture, providing career and progression opportunities, and supporting their wellbeing. We follow sound environmental practices to lower our energy footprint, reduce waste, choose greener infrastructures and equipment, and promote environmentally friendly ways of working. We help our clients to accelerate industry transformation by reimagining the relationship between people and technology, while safeguarding our clients’ privacy and protecting the assets entrusted to us according to industry standards. We contribute to the societies we are part of, and more broadly the Technology & Services industry, through community and fundraising activities in the areas of Education, Health and the Environment. We apply the highest standards of business conduct and ethics to work situations and strive to make the right decisions that benefit our people, inventors, customers, suppliers and society.
21 2 Financials Q4 FY2022
22 MASTER SERVICE AGREEMENTS WITH CLIENTS PRIMARILY T&M BASED PRICING LONG-TERM CLIENT RELATIONSHIPS STRONG REVENUE GROWTH HEALTHY MARGINS LOW CAPEX REQUIREMENTS POSITIVE ADJUSTED FREE CASH FLOW Financial Highlights
23 STRONG REVENUE GROWTH FY18 FY19 FY20 FY21 FY22 _ FY21 FY22 180.4 133.6 169.2 112.3 157.7 105.2 147.595.1654.8446.3351.0287.9217.6 CAGR 31.7% OVER LAST 5 YEARS, 88.6% OF REVENUE (ON AVERAGE) EACH FISCAL YEAR WAS GENERATED FROM CLIENTS IN THE PREVIOUS YEAR. FY18 JUNE 30 JUNE 30 12M21 12M22FY19 FY20 +46.7% YOYRevenue (£m) FY21 FY22 Q1 Q2 654.8 Q3 Q4446.3
19.2% 12M Q2 Q1 24 FY18 FY19 FY20 FY21 FY22 _ FY21 FY22 32.5 18.5 25.9 16.5 19.1 10.6 24.98.7102.454.423.429.123.0 ROBUST PROFITABILITY FY18 FY19 FY20 FY21 FY22 _ FY21 FY22 36.3 29.3 34.2 23.9 33.0 20.6 34.818.2138.392.166.751.031.8 14.6% 19.2% 23.6%MARGIN FY18 FY19 17.7%12.2% FY18 JUNE 30JUNE 30 12M21 12M22FY19 FY20 FY20 19.0% JUNE 30 12M21 12M22 15.6% * See page 30 for reconciliation of IFRS to Non-IFRS metrics CAGR 44% Adjusted Profit Before Tax (£m)*Profit Before Tax (£m) 10.6%MARGIN 10.1% 6.7% FY21 12.2% FY21 20.6% FY22 15.6% 21.1% FY22 18.5 JUNE 30 102.4 54.4 Q1 Q2 10.1% 12.1% 9.2% 16.9% 138.3 92.1 20 6 21.1 19.6% 20.9% 23.6% 12M Q2 Q1 Q1 Q2 Q3 Q314.7% 15.3% Q3 21.3% 20.2% Q3 Q4 Q413.9% 18.0% Q4 22.0% 20.1% Q4
JUNE 30 DEEP CLIENT RELATIONSHIPS FY18 FY20 FY22 Q4FY21 1348513485656346 FY18 JUNE 30 FY19 FY20 25* Calculated on a 12 month rolling basis. No. of Clients / Revenue > £1m* FY21 Q4FY21 Q4FY22 JUNE 30 FY18 FY19 FY20 FY21 FY22 Q4FY21 Q4FY22 32%36%34%35%38%38%42% TOP TEN FY18 JUNE 30 FY19 Q4FY22FY20 Top Client Revenue % FY21 Q4FY21FY22 FY22
26 INCREASING NUMBER & SPEND OF CLIENTS FY18 FY20 FY22 Q4FY21 732615732615416275258 Total No. of Clients FY18 JUNE 30 FY19 FY20 Q4FY21 Q4FY22 JUNE 30 FY21 FY22 JUNE 30 FY18 FY19 FY20 FY21 FY22 - Q4FY21 Q4FY22 312260841697647699597 Average Spend: REMAINING CLIENTS (£000s) FY18 JUNE 30 FY19 FY20 FY21 Q4FY21 Q4FY22FY22 JUNE 30 0 5538 11075 16613 22150 FY17 FY18 FY19 FY20 FY21 Q4FY21 Q4FY22 5,7604,76022,15015,59013,38010,8709,040 FY18 JUNE 30 FY19 FY20 FY21 Average Spend: TOP TEN CLIENTS (£000s) FY22 Q4FY21 Q4FY22
DIVERSE REVENUE BASE: GEOGRAPHY & INDUSTRY VERTICALS 24% 25% 51% PAYMENTS AND FINANCIAL SERVICES TECHNOLOGY, MEDIA & TELECOMMUNICATIONS OTHER REVENUE % BY VERTICAL Q4 FY22 FY18 FY19 FY20 FY21 FY22 _ Q4FY21 Q4FY22 3%2%3%3% 35%37%35% 31%29% 27% 21% 22%21%21%24%24%28%34% 40%40%41%42%44%45%45% UK EUROPE N.AMERICA RoW * FY18 JUNE 30 JUNE 30 Q4FY21 Q4FY22FY19 FY20 27 * Other includes consumer products,
healthcare, mobility and retail verticals Revenue by Region 3% FY21 FY22 3% 3%23%
12M Q2 Q1 1.6% 2.4% LOW CAPEX & POSITIVE ADJUSTED FCF 0.00 27.00 54.00 81.00 108.00 FY18 FY19 FY20 FY21 FY22 _ FY21 FY22 43.4 32.6 16.1 10.2 31.2 18.7 16.521.2107.282.731.529.828.7 FY18 FY20 FY22 FY21 3.7 1.6 2.7 1.4 3.8 1.7 3.50.613.75.27.36.13.7 FY18 12M21 12M22FY19 % OF REVENUE 13.2% 18.5% 16.4% FY18 JUNE 30 FY19 10.4%1.7% 1.2% 2.1%2.1% JUNE 30 JUNE 30 FY20 2.1% FY20 9.0% 28* See page 30 for reconciliation of IFRS to Non-IFRS metrics Capital Expenditures (£m) Adjusted Free Cash Flow (£m)* FY21 1.2% FY21 18.5% JUNE 30 12M21 12M22FY22 2.1% FY22 16.4% Q1 Q2 13.7 5.2 0.6% 2.3% 12M Q2 Q1 Q1 Q2 107.2 82.7 17.7% 19.8% 22.3% 11.2% % OF REVENUE Q3 1.2% 1.6% Q3 Q3 Q39.1% 9.5% Q4 1.2% 2.1% Q4 Q4 Q424.4% 24.1%
3 Appendix Q4 FY2022 29
30 IFRS TO NON-IFRS RECONCILIATION 2020(1) 2021(1) 2022 2021(1) 2022 Reconciliation of Revenue Growth at Constant Currency to Revenue Growth as Reported under IFRS Revenue Growth as Reported under IFRS 21.9 % 27.2 % 46.7 % 47.7 % 35.0 % Foreign exchange rates impact (0.9)% 2.4 % 0.9 % 7.2 % (4.1)% Revenue Growth at Constant Currency Including Worldpay Captive 21.0 % 29.6 % 47.6 % 54.9 % 30.9 % Impact of Worldpay Captive 3.2 % 0.8 % — % — % — % Proforma Revenue Growth Rate at Constant Currency Excluding Worldpay Captive 24.2 % 30.4 % 47.6 % 54.9 % 30.9 % Reconciliation of Adjusted Profit Before Tax and Adjusted Profit for the Period £ in 000s Profit before Tax 23,364 54,368 102,379 18,538 32,491 Adjustments: Share based compensation expense 15,663 24,427 35,005 6,909 7,463 Discretionary EBT bonus 27,874 — — — — Amortization of acquired intangible assets 4,075 6,725 10,823 3,380 3,077 Foreign currency exchange (gains) losses, net (2,054) 6,546 (9,944) 515 (6,785) Net gain on disposal of subsidiary (2,215) — — — — Total Adjustments 43,343 37,698 35,884 10,804 3,755 Adjusted Profit Before Tax 66,707 92,066 138,263 29,342 36,246 Margin % (Adjusted Profit Before Tax as a percentage of Revenue) 19.0 % 20.6 % 21.1 % 22.0 % 20.1 % Profit for the Period 19,991 43,450 83,093 15,957 27,039 Adjustments: Adjustments to profit before tax 43,343 37,698 35,884 10,804 3,755 Tax impact of adjustments (8,787) (7,241) (6,933) (3,158) (1,448) Adjusted Profit for the Period 54,547 73,907 112,044 23,603 29,346 Reconciliation of Net Cash from Operating Activities to Adjusted Free Cash Flow Net Cash from Operating Activities 37,877 87,668 120,719 34,234 47,112 Adjustments: Grant received 888 228 139 (39) 49 Net purchase of non-current assets (tangible and intangible) (7,319) (5,236) (13,695) (1,634) (3,741) Adjusted Free Cash Flow 31,446 82,660 107,163 32,561 43,420 Margin % (Adjusted Free Cash Flow as a percentage of Revenue) 9.0 % 18.5 % 16.4 % 24.4 % 24.1 % SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION TWELVE MONTHS ENDED JUNE 30 THREE MONTHS ENDED JUNE 30 (1) Restated to include the effect of IFRIC agenda decision on cloud configuration and customisation costs. In 2021, IFRIC issued an agenda decision on configuration and customisation costs in a cloud-computing arrangement. In response, Endava's accounting policy on intangible assets has been updated, specifically to expense costs incurred in the implementation of business systems built upon software that is contracted on a SaaS basis and hosted in a public cloud where these do not give rise to an identifiable intangible asset that Endava controls. This change in accounting policy is applied retrospectively. Endava's most significant configuration and customisation costs were incurred in the fiscal years 2017 to 2020, when Oracle ERP system was implemented.
