Source: Sharecast
On an adjusted basis, pre-tax profit came in at £254m, in line with guidance provided in January, but down 8.6% on the year. Reported pre-tax profit for calendar 2024 declined by 10% to £244.6m. Gross invoiced income fell 1.6% to £9.9bn.
Chief executive Mike Norris said the company exited 2024 in a “robust” position, with a committed product order backlog “significantly ahead of our position in December 2023, as well as at the end of June 2024”. Shares in the firm were up 12% in London.
“We remain mindful of the uncertain macroeconomic and political environment. In North America, following a strong performance in 2024, we continue to be excited by the growth opportunities we see ahead,” he added.
Professional Services revenue grew by 11.9% on a constant currency basis and accounted for 48% of total services revenue. Germany, its biggest market in the sector grew 6.2%, with the UK increasing by 19.4% and North America by 30.2%.
Managed Services revenue declined by 5.3%, primarily driven by the loss of low-margin contracts in France and exiting of non-core activities in the UK and Germany.
UK customers exercised greater caution across the year, with purchasing decisions taking longer to conclude, the company said. This behaviour was compounded by the General Election in July and as a result of the more challenging backdrop, the competitive environment sharpened.
North America delivered another record year, supported by several significant new customer wins. Gross invoiced income increased by 8.9%, driven by a strong performance in technology sourcing against a challenging comparative, as well as services revenue growth of 27.1%.
Reporting by Frank Prenesti for Sharecast.com