15 Jun 2021
Press Releases

Full results for the year ended 31 December 2020

tpgroup, the provider of mission-critical solutions for a more secure world, announces its audited results for the year ended 31 December 2020.

Financial and operational highlights

Revenue up 20% to £59.0m (2019: £49.4m)
· Organic growth, excluding Sapienza, of 9% (£3.5m), with Consulting & Programme Services up 30%, whilst Technology & Engineering reduced by 4%
· Added £6.1m revenues from the full year effect of the Sapienza1 and the acquisition of Osprey Consulting2

Adjusted operating profit of £3.7m (2019: £6.2m)
· Margin erosion due to project execution timings, resource utilisation and supply chain issues materially caused by the coronavirus (“COVID-19”) pandemic
· Investments made across the business and to strengthen AI and software products, focused on positioning tpgroup to execute on compelling market opportunity to drive future growth
· £0.1m of profit contributed by acquisition of Osprey Consulting

Operating losses of £4.8m (2019: £1.0m)
· Lower adjusted operating profit
· Impairment charge £1.4m (2019: £nil)
· Earn-out provision of £0.5m (2019: £1.6m) relating to Sapienza and Osprey

Statutory loss after tax of £10.0m (2019: £2.0m)
· Higher operating losses
· Losses on discontinued operations of £5.0m (2019: £0.1m)

Closing cash of £7.4m (2019: £6.6 m)
· £2.0m cash used in the acquisition of Osprey
· Settlement of earn-out payments, £0.9m for Sapienza
· £2.3m invested in software and AI technologies, business systems, IP and infrastructure
· HSBC bank facility of £7.0m fully drawn

Order intake of £71.5m (2019: £62.5m)
· Existing business, including Sapienza, £64.3m (2019: £62.5m)
· Opening order book of £5.3m acquired with Osprey
· Additional £1.9m of new orders post-acquisition from Osprey

Group closing order book up 22% to £69.3m (2019: £56.8m)
· Organic growth of £6.7m (12%)
· Includes additional £5.8m from Osprey

Talks regarding the disposal of the Company’s maritime engineering business continue. No formal agreement has yet been reached. The Company will provide a further update in due course.

Phil Cartmell, tpgroup’s Chief Executive Officer, commented:

“Through this period, we were able to grow our revenue by 20%, due to a strong opening order book, continuity of critical programmes, the addition of Osprey and Sapienza, and the continuing capture of new contracts, despite the backdrop of global uncertainty caused by the Covid-19 pandemic. We trust that the uncertain trading conditions of 2020 will eventually stabilise, and so we have taken the opportunity to prepare the Group to continue revenue growth and return to improving profit levels.

“We have invested in our business in Europe and secured new work in the Middle East and the United States. There is substantial pent-up demand from new and existing customers in these geographies to meet with the team and we hope to satisfy this once travel restrictions are lifted.

“In addition, we have focused on our growing activities in consulting and software with the acquisition of Osprey and the sale of TPG Engineering. The industries in which TP Group operates are investing heavily while rapidly digitising and integrating, leading to significant opportunity for our business.

“As a result, the Group is well prepared for the future and we are confident our excellent consulting, digital and technology capabilities will enable us to meet the exciting opportunities before us.”

Additional narrative to the results will be published in the Group’s Annual Report and Accounts which is expected to be published and sent to the Company’s shareholders on or around 21 June 2021 and will be available to view on the Company website here

1 Sapienza Consulting Holdings B.V. acquired April 2019

2 Osprey Consulting Services Ltd. acquired 25 August 2020

Click here to read the full RNS

For further information, please contact:

TP Group plc

Tel: 01753 285 810

Phil Cartmell, Chief Executive Officer

Derren Stroud, Chief Financial Officer

www.tpgroup.uk.com

Cenkos Securities plc

Tel: 020 7397 8980

Stephen Keys / Mark Connelly / Callum Davidson

www.cenkos.com

SEC Newgate UK

Tel: 020 3757 6743

Elisabeth Cowell / Bob Huxford / Richard Bicknell

www.secnewgate.com

Notes to Editors

TP Group delivers complex equipment, software and services for mission, business and safety critical applications in the defence, space and energy sectors. With more than 400 people in 6 European countries, it serves global customers through long-term contracts. The Group’s shares have been traded on AIM since July 2001.

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