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Preliminary Fourth Quarter and Full Fiscal Year 2019 Financial Results

Author: Mark Tiedens

NEWS

Growth in revenue and EBITDA

HH Global today announced unaudited financial results for the final three months and full fiscal year ended March 31, 2019.

Fourth quarter 2019 highlights

  • £106.2 million revenue
  • £24.3 million net revenue, or 22.8% of revenue in the fourth quarter
  • £3.9 million non-GAAP adjusted EBITDA

Full fiscal year 2019 highlights

  • 22.2% revenue increase, from £325.1 million in fiscal year 2018 to £397.3 million
  • 25.3% net revenue increase, or 23.1% of revenue, from £73.3 million in fiscal year 2018 to £91.9 million
  • 42.7% increase of non-GAAP adjusted EBITDA, from £13.4 million in fiscal year 2018 to £19.1 million

Commenting on the results, HH Global Chief Executive Officer Robert MacMillan said: “These record setting results reflect the accelerated adoption of our core outsourced procurement services by large enterprises. Our ability to maintain a very high client retention rate and to provide depth and a broad range of services enables us to meet our clients’ ever changing needs. As our client partnerships have evolved, so too have our service lines to include data analytics and content creation solutions. We expect these services to complement our core outsourced procurement offering and fuel our future growth.”

HH Global recently completed two acquisitions, including Alecom, a print and luxury brand marketing services provider, and taking a majority stake in Blueberry Wave, expanding its services to include data-driven customer experience solutions.

HH Global’s strong financial results continue to be underpinned by significant current client expansion and new client wins. In the last fiscal year, commitments for renewal or expansion of existing or new enterprise contracts amounted to approximately £160 million of annual revenue at full run rate. Big wins include a new full scope marketing execution partnership with Walmart China, and a new relationship with a major mobile telecommunications company in the US.

The company also continued the expansion of its LatAm operations, with the opening of a new office in Panama City and the upgrading of its Mexico City offices, as a result of its growing relationship with PepsiCo, and new relationships with a global spirits company and a global FMCG company.

HH Global’s commitment to sustainability culminated in the signing of  the United Nations Global Compact (UNGC), the world’s largest corporate sustainability initiative which addresses challenges to the environment and human rights, encouraging businesses worldwide to adopt sustainable and socially responsible policies.

Edward Parsons, Group Chief Financial Officer of HH Global, said: “Our EMEA, North American and LatAm businesses continued strong year-on-year growth.  The trends established during the last fiscal year show no signs of abating. We expect benefits from our current client expansion and new client contracts to deliver additional bottom line growth throughout the year.”