S4 Capital (SCPPF) 30 May 222022 Q1 Earnings call transcript

So good morning, everybody. I'm joined in London with Mary, and Scott is in Singapore, and we're just going to review very briefly the Q1 results.

So Mary will take you through them. And then Scott will just do a brief follow-up, and then we'll go to Q&A.

So Mary, over to you.

Martin. you, Thank

on profit and and million. a Gross our XX% the gross morning, GBP our line for the XXX for margin us year XX% EBITDA at maintain like-for-like half. growth up joining in year, on a and year full with So like-for-like year on our net a steady trading thank this revenue plan. in update. for basis onwards, to EBITDA target XX% second revenue. of revenue guidance with QX first net will we XXX top to reported We We've today basis full the XX% in million. and good GBP to be quarter, the from you Operational a profit weighted X-year line In delivered basis in growth continue improvement significantly up strong was

the the due in group well whoppers half more new in naturally the our X/X weighted case delivering be to Now growth, including investment half, our as is investment and pitch the our XXXX year in as will management EBITDA. average infrastructure. the whopper around even This second to of full our with second

XXX pitch to Net was at in combination on QX, this whopper million, TheoremOne fully taking have a basis, ranging significant payments, take our of it GBP the business. is including GBP and increased the second cost given monthly of whoppers, an Since new end will and first be effective of will from the X. the added March In GBP efficiency addition, year, million with we X will XXX operative The the pitch in be resources X between currently million on we through focus Both uncertainty. X and end selective and and combination. reflecting the XX growth of ramping debt half. half operational actions total will with XXXX the economic new through current be

liquidity. We maintain continue significant to

Moving update strong X% our In XX% business. for gross full invested a profit/net region, strong for the XX%, with mix delivered slide, Zemoga and accounting Americas, have with The BMW. the XX%, we with was pass your we gross technology practices XX%, And of take the profit/net with consideration gross now XX%, media across integrated my an on EMEA from Content continued questions with fastest, gross to results, have on Data and including we up questions XX%, here up at our included comments the information operating following that, the of year in brand largest asked convenience. perspective, to the under We've happy growth our to profit/net basis. all whoppers was all revenue region Scott revenue appendix, recognizing for XX%. capital. on revenue. contingent from Tech.Monks. And performance any the APAC, the particularly grew quarter the the activation these grew strong mergers. growth business. And which will are saw and of I and for & performance on outstanding and next been are profit/net up of up digital regions. a revenue accounted it And regional grew and From services like-for-like

Thanks, Mary.

our everybody, QX results. to So welcome,

quickly As just Mary cover to going said, X deals. I'm

more QX, X and that took one, TheoremOne, a place place which end the a the in Analytics, Mile was quarter. after which one, recent took transaction of So

specialization company analytics They software media projects engineering, visualize practice. analyze in experience platforms our on that joined a -- to data It's product certain Mile is use engineering and management. and platforms and user and their X real data. data clients governance, So that's focused digital and a technology data company actually & have

product Looker, Google then experience California, Cloud XX-plus primarily that is they their engineers, and also or around in areas which of did company and them same years bought lies particularly focus X.X a for a or last that Google on. Fivetran few revenue million Snowflake, based GP. data It's So a in GBP back, year.

So of area. and, us, budgets company great capabilities the an digital think, also, addition traditional and spend brings an excellent sort obviously, outside interesting I great to accessing that of clients media

cover The is to second TheoremOne. one I want

a in out So as end this familiar towards our last deal mega services line we we with all the technology of break item terms that did you're and now separate separately, of profit. year, gross

understand, to technology what mean important it's think we services. by I firstly,

products for which and digital and development, clients marketing services systems technology. integration is software also So us, for our that's the building essentially around custom

So engineer-heavy or vastly. these firms are engineer-led

Zemoga, you Colombia primarily them engineers. If take all for of XXX around people, example, in and

marketing thesis are what our across expanding own increasingly partners transformation can trust that need their who as collaboration efforts. seeing work them clients and technology with increasingly it's for So really are view and digital CMO, seamlessly intersecting areas, just across internally in to CTO they we technology between Services, that our we both they do CIO,

meaningful capabilities converted And So really we've clients. the since we've several our is and merger expansion Zemoga several with year. already. & for media digital likewise, a done And of actually, seen existing that creative data & their the real services, deal, us. that differentiator of to and offer we've They've I in creative was technology media X really proving our synergies data digital last clients. us think introduced for a months holistic that of And

capabilities deal client complementary a perspective. a Zemoga and that base model recently, business very from relatively a Theorem, with we So completed

technology but of that how can Zemoga. forward but practice. that and terms a approach, model Actually they more U.S.-based, work together lot different drive business are consultative client a of and it's sort a really to services we're in similar Great their So in our should larger TheoremOne, than size revenue excited Zemoga's see of I well, us mean that as in slightly base. Last and people build XX model. their the they model as and large technology of well in around do and the design bring clients, marry they Martin with people Several nearshore they also services are whopper financial best revenue/GP large other think to one did year, contribute. Mary X. technology area actually of million. clients And very mentioned,

very again, complementary So there.

So that's and we think back Martin head Q&A. it open up from me, for I and to

Scott. Thanks, Thanks, Mary.

we So please? have Cita, can questions, any

first [Operator Instructions] Julien our question from Roch Barclays. now will And from we take

a My first I is market on mean if -- macro worrying question slowdown, a the not recession. the about

cutting. you give statement, are doesn't can at us seeing your first worries? you're from of your the clients everything the what that it seem So client on saying question. macro in moment terms But That's

is The -- if to go second question we were

we? shall deal it Let's one with by one,

Yes, Okay. sure.

I one are becoming that last our the up that meetings to growth. media, much digital that the XX%, about media Thursday. much think On quite our global weekly not we and budget important, a generally one is us more activities, with of say significant Media clients of offline. would goes At mix tech are And that on the is focused on of more was call will XXXX, grow the even scale online are macro, is of the thing modeling analysts what so came The how we and modeling given mix we saying forecast XXXX. forecast XX% was goes big measurement. that online, maybe is, seeing much as from the clear example, much it for platforms, deciding for focus how more how making budget by online on

bad look so which might So forecast the given last that that's what yet. to what seen call really night, IMF placed people at listening the bad we've having seen that, But news this year, They GDP still for X% become clients last that does not fair, budgets be or attacking X%. the economic us north in the no which you year speak, and I and performance the GDP of activation mean of as tightening like When elsewhere, to that they've giving They give X% to fairly U.S. orientated. our avoid have do key we're until change as slowdowns I you When the last low the are very signal it our cuts. sign said funnel, the And is we've at sort don't prefer to of well as -- QX funnel. go think think were more moment. we news. to up position down on conditions. there's be a said much the given But to I I X%. and look although the us happened, growth think and meaning in clients the

said is that. do do statement was The level pipeline as call last our you on is and we more weekly what activity from Scott, want this strong indicated. any We the of evidence of see? year, we add to Our that stronger to time finessing. you see

Yes.

-- we've And I'll QX. were concerns. not down those effects the a in that. We're on are any spend client of just Obviously, right now. double from seeing think really negative already macro I there lot existent

I So they happened not afterwards. that it's think

I that media digital it's projections. you as bringing spend analysts true, down And said, that. think the reflect some results of Our are

outgrown If growth you media the consistently look we've year-on-year-on-year. digital spend back,

XX%, XXXX, So So at at grew grew example, we XX%. did for take -- if spend you the we and

year, rebounded We XX%. spend last If you to did XX%. take

technology relatively comfortable we can is are should growing general, growing outgrow trillions is of of such And markets, marketing XX%; also our platforms, is growing XX%. at growth transformation really there others out that so feel the XX%; which So you digital which there, growth addressable only always I we dollars at software, remember of which of one think at cloud market. that's of XX%, as plenty XX%, in and

that primarily those tap a our Also, confidence. said, And into technology all tech. Martin think it I to markets dominated by lot clients, big we as be us gives more. companies, and of So continues

Adobe, And our share. likes is other that's then I et continue the TikTok, to Salesforce, versus all Alphabet, point companies. think, growth double-digit and of which strong Amazon, finally, of cetera, PayPal, sectors do So Meta, around market the

and very achieved holding we're EPAM, think the short Ad which with look the XX what I groups, came agency includes our Globant, Interactive, Accenture cetera, proud big at we've companies, you Age we in history. et XXth. So if But happy top

market But So X.X% the we a we had list. share. made

there's well. perspective, as that from share available us think for of plenty I So

The second going X agencies X, to were XX-plus from slightly usual, year a the if X, from minus to SX I growing? you're holding we minus question, what down go global similar. would recession into to and next go the mean, were plus But XX,

did we a but relatively COVID on absolutely I not on since I to top significantly than almost larger minus in And moved down mean, But average March whole and parallel hit got we've April, XXXX, XX%. goes, -- XX%. you've We're the mean to we're XXXX. on, I XX.X% when then. obviously, XXXX. Well, in the so line, were think about

basis companies, ahead. there difference. of -- has moment, point the significantly XX%. QX we think So we sort I did We're At the year, a were at holding around significant last XX%. did The been

average companies the or for what Xx year? was it, sort X Yes. about was think holding And doing I that. the last XX% year last of around, we're

market figures So our and focus States. digital, given are underline the I that again, just think the there of on our because we think the included release is -- came which, in reason we figures I mainly United that out to to that believe that in position,

will States to was the United XX% to we digital U.S. see from share or I States, to figures And that principally. came So year it the it adjusted the this last reiterate, was XX% in before growth. to week, the XX% in XX%, Friday late refer just I right those last United global on in the growth. takedown mean And the they digital it of forecasts, go market, increasing talking 'XX XX%. week, and that, When 'XX. market, -- XX% I think for just to those around to in think they was by media continues out even about by

in to reason So down do increases. they're there's where by capabilities addressable you market. it Scott, point I share just it a of and view significantly, but to that advertising other services? represented And goes -- into markets believe the the beyond heavily go taking quite think we tech from want are

Yes.

recession. significantly spend, that previously, are really all tech higher of around digital in around at which I are you think back of spend, I transformation consistent if marketing spend, not digital mentioned a media look spend, it's things but technology cloud more in platform only historically, kind stable those more than and growing markets services,

tends little spend little and react think a to So now on upside, and tend a whereas they kind the down spends more both are those less cyclical don't the steady. of I -- media and quickly hard, the

And the appendix is is know the the I yet we there Okay. But that appendix, the in the Mary more. presentation and website. on presentation, the question, last of said not haven't seen

So XXX if M&A related could the But of A incentive Is shares is the could -- your extra get less the it is point. at related starting give the Or But the that the of the value for to value related for if for date? Page X shares you XX% creation XXXX? extra capital starting on XXXX. of annual So to report, average? M&A also what's compoundedly month's invested grows we the a creation? X%. shares we And set point M&A get

the for shares the in shares and starting please? the So incentive, point 'XX shares A in the extra --

The beginning. the when the to is A started very point starting shares at we

the says invested The capital Do want in is it billion Mary? approximately been issued, talk that GBP appendix, invested to you the trigger that's shares have capital. for X the the that. So about

Yes, of course.

you initial deferred the share where based issuance, both issuance share when is been that considerations on see delayed. we've the has the Julien, So you'll included appendix, see which

million those, GBP for in million XX GBP So and X we GBP million XXXX. in X in XXXX have XXXX,

which contingent We as expected also we've shares, share assuming the consideration current of have Friday. calculated, price

sorry, XX XXXX. GBP And So in million XXXX, million. XXXX -- XX GBP

be slide, very written you're me take If just numbers you you I'll shout, when on the to a have and questions them. that's any happy give do seeing the through all

Citi. will next from take question your We Tom Singlehurst from now

going sort sort Tom from views balancing a obviously, strong wondering I'm that that Yes, item. then them sort focused at of mean, do Citi. we worried the of problematic profitability pressure you question, of context tech seeing got just the of and It's I'll the here the we're more so these slightly advertising of how sort technology clients. time. some exposure cash sector? should the companies is of prove give significant whether a you've about whether tech a exposure at first such of and on in using a I now of one obviously us sense to be top about flow heavy funnel if talking funding safeguard as to pushing to and Can maybe just to any

say to cash I traction. money tech former. your behind don't. tech ones continue the the companies see about think the really: I'm yours clients I has I significant be and at Well, turned. money that clearly, to -- make make you think and that growth, X implication these don't buckets, And be but the rather correct focused talking the the Tom. or world not are mean tech continue. companies And would relation latter, question that on we all look must in mean I are mean the I newer about and or there relative, not the businesses I'd things if I And -- the flow,

of weeks, their expense a in important. That you week mean mean, are various is our position about, functions. the more are, within not are there critically more being in of to a on back competitors I clients on more call side scale an and But that where I marketplace because to is even looking in-housing increasingly in competitive internal again cutting environment, take on cutting or take the the in last contemplated result providers activity, other substantial streaming in outsourcing. to XX/X tech to and media there than used the areas you're previous reduced environment, always-on want would streaming that their control of their number outside consolidating marketing competitive streaming, in For the leads pressure may because seeing, spend equation, I example, say, that companies marketing words, they therefore, internal activities before. a significant we are of talking maintaining

on mean I health to care. of are So least a tech or we holding everything important, representation I the strong And business the is the extent, large that companies. but blunt mean, -- XX tech do some Scott, seen more care, we which continue the our to you I with prefer base, the offers, is contemporary in that a that that, presentation, in I'd want But in are think saying lot you sort well I tech think, to want call about having highly and I to no, I’m that? And say as said emphasis the XX% our at commentary been potential I on continue tech representation. in tech have question really a and, commentary has really I'm I focus of those is strong other profitable we of we to to them, we strong fewer to to -- would we've be. the I as X where clients, particularly sort health your to note, think accounts of question tech-driven. think that like strongly one and this the any growth, probably do -- having comment the case. mean, a tech. continues But area, profitable of of be is flashy tech-driven, behind the companies have know, your because we answer more lot of have think, I is think,

But I which would the right? about is definitely yes, it grow next? I to the years is factor technology. going or a And pressure think ago. say than do now think just you to stress right technology again was all that under So more it's X relativity, year

to maintain technology to be want growth and with companies, exposure we if we're then that sure. want a So clients for working growth company to

a But the would underlying tech purposes war in with just a been the strong importance has of I also on and respects. offensive tech think both this in of importance Yes. the difficult underlined. that defense Tom, say, the cyber, mean I for Ukraine, emphasis I -- point sort is of and purposes. some infrastructure is offensively, defensively a its even And

tech that think bodes just in the So the COVID personnel vaccines, that new to ecosystem. as like mean health care underlying of you And and strong underlined of has long I say importance missiles and can by importance rapid well. GDP of term. proportions a committed deployment well the is increase been defense, war of for doesn't And the and tech tech sector just tanks the as or or military beams, the

driver So digital -- other Scott is transformation, covered. has and then which the

Very it. I'm as Got flashy be excited nice that. to Martin. described about contemporary,

question -- The second

last. At

last. At Exactly.

under The second up, it's mean, discussion your which wonder real of growth just growth experience, I course, describe overall? question, of pressure. mean coming nominal it's given more a is naturally broad would whether again, mean obviously, your there's or is important a going lot you But real? question, but once nominal as inflation. we I I courtesy business of I -- -- about

Well, by real to honest, in be temporarily to I everything. and end, I driven think, things everything it be reverts might mean -- but nominal, the might

weeks mean couple getting that ago, our talking going clients heavily ways volume So increasing the prices clients few continue. find that last to to price. of rather -- than to as they're I mean during and our growth XX% of cannot increased clients much rather we years. saying are of through as or than I'm by -- I And have one a volume

that like to if more reactions end be we we're The strategic." relationships in we become funnel the your as we middle said we of week of reaction. be, you think in week. snapped would I valuable I In times last the lower describe you whereas should not, have sometimes too worry were before, or is argue it, think Snap been, business see Snap to funnel. or these, last Our -- that the "more the numbers probably the and tend question, -- tactical Snap we've that the our

tactical a awareness to as is be. there, it be not perhaps would and brand or Snap really it's too, it that see as You want heavily should

And and concentrate unites the I concentrate the on in more even think So in the or the we more on wouldn't particularly of figured real. the more figure nominal I we in where I within system. sales marketing -- sort and system companies.

are. Scott, we other where that's any on think I observations that? So

this you're that. on -- the expert on No,

Tom? know expert. don't wish any I was. I I

mean are Perfect. And markets, in well? quick markets you one. multiples very sell-off as come private down one talk the evolution about of given seeing final I Can multiples the we deals? in for public

Scott? Yes.

Tom, reality -- Yes, always takes is, I it more think mean, I time.

the private bit think to see don't public of more in through certainly sort starting markets. I expectations fed think, well. that and yet dropoff So a significant the happen also we're to I the changes haven't activity as But little reasonable, markets see and

I it's think much will continue. pretty that So that, inevitable

significant a new mean major to I going felt talking a XX there be company last week, PE was one raised, I billion to of in head just they it fund. think And he said opportunities. were they

in I for but had But capital a year performance funding the last example. the the at when to the again, think what's strong, interesting, lot of there week, was what end least last year, raised States, marked United I at last was year. they was market think we so the of

is the funding in week, Middle anybody PE in Middle in the who's were the are in -- in last or money. and Some valuation relates saying X the Davos We wealth to of the institutions the that being from last doubling is the so rising geographical it XX% really year. Middle incredible about the cutting was the increasing, price switched to effectively. East. was People as because too that are our high. East tripling East PE trips a That back funding were strong they now comments But being year. the wasn't East increase I on last anybody result of Middle made That so that interestingly, allocation their -- PE see oil flushed that raising allocation expansion,

QX, will One under do say X So here. which they and impact haven't already, mentioned, I be will Most come they valuation a in think will another strong. funds can on it If to, or that just that point what Scott the if billion PE the raised VC hand, But QX more, QX. from the are new be firm view. raise talked is fund. we people in of real there's I forces pressure PE there can is then powder. and would will PE remember, that quite other considerable There impact, in the they dry XX

And So companies, I plays think there tech might But be our valuations for new in some employees a interesting it the will tech us less, see labor it some out. bit advantage diminution extent. for in it little in companies the value. the we're markets, the already in I that how think be things make for will to would to off. pressure shakes statement and take seeing values indicated IPO option be which we easier the because, to

of I strong a there's funds to down, come going I but be raised think have come ways kind planet or down into from PE it’d will year, of there. of think this into that year the that much would year And even part valuation last more difficult, will this support significant be market. because or the money the amounts other don't of think still I that it's but money

We from Numis. from will our question next Steve now Liechti take

in the guys? as or any us given less to question. first towards for skew question, profitable or feel comments the your That's sort of players big opposed and us the you so on just your more First tech can early-stage give tech, remind

X mean big and have our all very the it's in X mean I profitable. highly you -- Yes. to top the mean whoppers. big -- Of whoppers, know end. give I our much are you you I the clients we

You then and go goods car. to a packaged

tech, You go a too. profitable, to then which strongly is

then then FMCG. then financial You into And go an services. go you to

clients. might retail, our be highly top XX likely become take But next be -- be -- most But either about about tech. XX. X, or X would would X, I million-plus tech. tech. well, if we talk don't might might tech both Well, So X top our they X the of be are that They much be will X profitable

we maybe what have At would at XX top that tend call in we a in -- with the that the profitable -- benefit the I newer referred where I are is would business So XX continue that to top the highly but to reinforce X before. of growth the our top from the it, we fringe, to are X big it XX profitable tech least of bucket of companies core our and tech. tech

Great.

like-for-like Next today. the figures in sales. first we've Obviously, question, got just on quarter net

on us As that? quarter, you April, sort give the comps we are the know any today, stuff us give stand can so that can you I Any second of there, visibility the please? maybe on just basis and help volatile like

No. We we -- you can find out about that when report in September.

Okay, worth one. And then last trying.

TheoremOne stuff. I'm now within give GBP us End mentioned are know running Can GBP whatever. debt XX But GBP lumps from million? the XXX you XXX to XXX XX XXX at you get to quarter sort slightly of Mary. and of more for GBP key thinking of any combination I to GBP and maybe debt, bridge the million, on million, GBP you're first that? Just just detailed payments million. what

Mary? Sure.

course. of Yes,

in So of of we the take which bulk debt we've had if addition, obviously XX net QX, bridge. then GBP at GBP about then, that the we've within And the TheoremOne. outlay the consideration, Since included million contingent end up initial obviously, cash range makes cash the it's on XX of at million.

getting mentioned you million might I XX million that think confused. that number is be is incremental just I that mentioned million? release. XX from GBP GBP the you memory within And to Sorry. on mentioned, XX that you the the GBP

to Yes, the GBP GBP XX XX incremental million the million. is

million have the And XX GBP consideration. which initial position contingent million closing the for is is cash XX GBP then million The cash up million also the So GBP Theorem, QX. of GBP we for consideration year full XX XX bridge. makes the

We question Walker take Suisse. from next your will Matthew Crédit from now

The margin. was one first on

year. this second think X/X said I weighted it it's and like normally, to you more be half, So will

give if That's could might second more to much you that. for of the be? us tackle So first Is like first XX% XX% question, how sort that it half-weighted, want a half-weighted? feel you

with Yes. you Mary, want that? do to deal

Yes, of course.

demonstrated our second the so whopper year the so is today, our what numbers And in both we yes, infrastructure. very investing driving we've of this strongly, is as So delivery obviously, new whoppers but in the for also the our a been our EBITDA to pitch the shift and in in are we've growing of weighting more in and growth, half.

give half precise would be expectation second to second than on to more obviously, though, the margin weighted and it's Now will more to EBITDA we for revenue/gross guide the to XX% profit We've hard My in the We haven't so weighting the numbers. it finished tried you half. yet, significant first half. growth. steady maintain do, guidance, year EBITDA obviously, net be improvement margin our XX% of

was the that XX invested XX basically plan, as will million, by your million XXXX? the then be shares. about comes I XXXX, to the just up us, shares plus the if that talked stand dilution, question about barring And XX the that I that you count is any does at for all shares. gave about that's moment? so of right. comes to 'XX want of the then had year-end other number that acquisitions, about And million given other to And mean at million us, additional the shares share things the If number see XXX the on it Okay. you those then XXX share million gave that capital you that in

Okay.

committed, We've if the So yes, share maths slide. on on the all is the numbers the the take your question consideration that's think there. comment or already correct quoted I I

see you're get drive to be is be And a it, to Matthew, to able then you take when that So look. to able XXX million. you'll sum you'll what saying

On the to I dependent terms date, invested in capital the say, price, in estimation ballpark your the of share right on you're would there.

sell-off. more is of which Snap final the then that sort And obviously, and, caused is Okay. mentioned big you macro-related, a question bit a

of market would perception suggest than very the Snap their the macro? Your Snap-specific. the fact in it of just are that is I advertising views macro-related rather numbers down for the thing, to the sort I'm that on U.S. quite your related that is something whole that. interested analysts genuinely digital guess bringing of

think was to Scott, go a not want on that you it tried I we specific. Well, to have indicate do that?

to obviously any were much the conference. reporting you mean too spend. or I at wasn't until full do, Snap probably what formal made right, see it's are a Amazon digital say, which comments guidance a and earnings on others Meta contribute think and that or like because Alphabet, much Yes. It bigger and to anything early the more I of

little conclusions. the on draw you any a very as aggressive. their And probably to being for banking brought been a early are think I projections spend has say, Obviously, that digital I media macro that reaction it's down think, has reaction. analyst

as said base. not competitors our spend our reductions where see I think think we're from any what have -- in that's what from client seeing we but said, And we that's some our as of think consistent base, client well. I I we see with

until of see So probably really But QX, going less not that indicate a would to macro QX that thing. know. it's results, we're everybody's we

look Yes, -- if you

made you -- another think I

Matthew. ahead. Go ahead. Go ahead, Go

about think you cut. that being quite another interesting -- on agencies they're quite was So comment you to made which I though, or shy about clients

are So going on -- when of do be set don't assuming they cutting? experience, I when when sort but question to know, they tend that historical there we cuts based and and do they my do to kind up say, of -- is to tend your Basically, is yes, some

make mean you I honest answer you Well, they you know decision. -- it -- finally the to when when know. the is that's

number sectors, mentioned for a streaming the a the I of area minute. Now

pressure situation. of reasons under of highly why because the have some competitive is the One been of the streamers

going deal going into with not not by show and spending. the to that You're

they're look is do to was you I question will I week. -- in-house the to And decide might because we last that companies big it's in I a work Tom's showing and that solution. all the shape. at would ones, better touched tech You biggest mean of they tech. are say earlier. tech Tom's less and When or give a with big and you Steve about you it Liechti's mean number base that Steve's think a moment. of bit It I question related the at or I out-house small. we tech, then about which of importance -- the about was -- about more -- with, when that, the we reasonable believe

are a by I think has them, but been rebasing they're hit rebasing level. obviously, of of IDFA, consistently estimates because affected One a undercalling I And their such of think it. they is sort sort lower estimates price the share from took that

they have outbound X strong grow X to a it's to at or grow profit continue other other unit they actually second to And have the some them while whilst rate. that because true China. -- may don't The biggest had very is continue China, do of -- exposure

that very to them, companies -- I profit China. had North working at So under may that's strong of robust see had and some some have of one internationally. running at of think economy impact very including what's because all is most is is the may The war. have But America, that the They Latin this And interesting because American impact continues the Chinese a market. levels. too. pressure, high extremely inflation They American

much is overall, think, the going. growth, continued, order on invest prices Obviously, spending, the to are careful tech focused on consumer I effectiveness. feel good is companies heavily have I business, sales raising other of non-tech, mentioned organic pretty sales, we the varied the can't to way which means the in a going very half [OneCloud] more continue. picture. focused to get in measurement about area, which In they're that So

think overall plays it helpful I -- that, ourselves. our difficult a to think want a but to don't it's helpful I strength. is environment, I to way, is because say And it's in -- So

now will [Alex We from next from Barings. our Apostolous] take question

mostly to the questions audited earlier delay 'XX related have I the year in results. to accounting that led issues this the

the the at my was longer-term understanding the that least. part to is in of business side legacy contracts related that, So

which all to? underlying that that And I issues after that. related the see provide information contracts actually on a bit you impacted? profitability can those questions of contracts some So with And more have you follow-up of these were do issues,

want projects? think talk, about to we you that longer-term But can one -- the names. about I provisor don't with Mary, do name

course. of Yes,

the of XXXX this of clients in the included that one increasing issues with the business reasons And arose the way and because the significantly. contract complexity So we some that grew was very longer-term contracts.

PwC. issues their full We've XX complexity did limited Now is had what control in We audit. we the got larger, that audit. that team since judgments and review that as the XX they of offices we complicated when but IFRS under than on XX we afternoon you solely And of said, the detail. where launched moment When a and that I dealt work spent full were had just very around the saw done presentation, to the with through then we year issues as to arisen team. of part IFRS so that, that in and results results the were process weren't And training we contracts, going the required full debrief during IFRS more with meant experience presentation, are the the the an the the think also thorough did at we longer-term a those for about we going years. some with focus in previous at we issues created of the the did update lack with we've work terms a also we've year

we news a new them it I their think allow there to the that, did captured we've wasn't it's through process collaboratively testament sure way make forward in take in that suggestions. any work things discuss detail the us how all but to we audit and with to

that's Yes, clear.

second also question The this. relates to

or to massive weren't you a on think, the I finance ago, mentioned a expecting call think I So see see on investment, month the headcount about side. that you you wouldn't

a is you're they come sense, And will effect? still effect? about, case? the when get into through talking have measures all and the those these IFRS Or that into going to XX trainings, Just that that, initiatives already all come

in about the Thank talked we enough you. necessary of before finish terms finance come lucky we so Yes, infrastructure, I the was when the to in so budget. investment

to we've we GBP somewhere be controls me review year as as the think be between this to year. million half was the through team, of the some last that that audit. budget. million be X year in aggregate, million, X the for encounter will full selected with And go we've training GBP IFRS and And before to million X during year. our the The for over thing we close same X that budget it in big auditor. will the is expect so XX which I we to around weeks GBP of processes X. the half don't It's And other GBP But and included terms the complete the incremental very in obviously the important done internal one issues agreed our had we X X we process of we've

terms I And the then that begin some of hiring imminently. mentioned. in So of will

said I CFO February. our results, in year the as new at So full content started

started group new controller April. financial in Our

the particularly, content now. table and stream, has on already they're So CFO the well by their feet under

the expect, start would appropriate. build treasurer, out teams summer, will of their global then finance I June. the we lead global transformation compliance all the in over and the have We head And as will

we a time be place expect the much, in announcement do by the I half So to in year results September. better we'll much get

flagged. fiscal all I assume measures And so for pretty you taking, telegraphed due lastly, to right I issues Okay. can with view delay 'XX? be you're to guess, then had still adequate just they And you going this and been and now, those PwC announce going think as lastly, understand, night year before don't the forth confirm you is were to These if you've auditor, that your back the just why they well sound PwC. report. And that. I though

time. So appreciate why all wait had. I until I your last That the was minute?

and with will PwC that last were They with on unacceptable. the that's obviously, said them. time. very the were we On last that off with as support prerogative. we whilst has is made I minute, be mean, in was point, it it at time. I was embarrassing that question the rotate continue We'll the about obviously, decision PwC, minute. year's continuing continue couldn't the up at the He a I mean said, right business But in as partner the that they as with to they until closely way they working that the should not comfortable as it happened.

So their there what audit said unfortunate, in comfortable unhelpful was mean with due that's minds, that they But it I that as can I that's course. go unsatisfactory it mean on -- were closely before, will working think But I to I be have a us new not, you felt. And their in put they or with you or together didn't we not were clearly, letting I agree ahead. partner very Whether that they with prerogative. coming them. because the if was way,

and the rigorous not but go produce So health on of by year. of that our us, to March for disappointed, produce course, review along very year Mary way. next our they as time have they We And bill results -- and they way, for internal had obviously of thing procedures. we And a decision January, were in the or But And on felt clean they is that's felt XXXX and time. it. to. very best get mortified said, results that made decision, with half came annual that we February and that we

Clear.

percentage what Sorry, are about, talked I The all X one, I total just you of have. revenue missed That's they? a one. quick your whoppers that

but the figures. X, for at I confirm about X/X figure revenues the top rank X. it we we're gotten I the could sitting think here, that top in about say X/X. say haven't the I whilst But our I would say of would the top X, would We'll

HSBC. next from We Spooner from will our now Joe take question

Is revenues how first going year, the like-for-like like-for-like kind Any you the I of second give that the up of would of end case to that margin and a back headcount? quarter helpful. a around are guess these that as of And that headcount into detail behind what the And Can to first it little manage of improvement you've be deliver bit the disclosed? can. details performance, to just in look half? going recruit allowing the of until if I this headcount uncertainties you the to half continuing you then was

-- from you I of Yes. and this comment year, see this last to about on I this year headcount how to you want about X,XXX think last it numbers, about Mary, do mean control? X,XXX time raw we in at time was year. at went

Yes. Thank you.

in have very the as might naturally, opportunity headcount the over across review has do look terms grown and as you an or that obviously, very, of have a And so at to So the we the we and last business fast. at X X business, how point, the we years, the expect capacity business. we're this organized

the the climate, And we uncertainty the so and sure in much seeing group efficiency and optimized take look as particularly point make we that of further turbulence efficiency do for we're light we're move in growth. and to into the a the economic second support also of that the us the macroeconomic to for opportune half, have at very an

of some into So the second Joe. we half, the as be undertaking move work we'll that's

And in statement the the comments --

previous just Joe, that question. on Sorry, quickly

lot you If client back you our slide different there's the and of a the go about -- break relationships, to scale of if a scale we back in go has to that there presentation, full client detail, year relationships. our out of our client

XX our top our of So represented clients 'XX. revenue XX% in

Apologies helpful. to --- that's hopefully, So

problem. No

running you of come know versus comments put those that to at of statement add churn but comments. of that in down. kind kind that, starting levels can I any the couple a don't Just color around you're around you if employee out see earlier history, was high

I again, get didn't Sorry, Joe. that it. Joe, just repeat

morning, around had employee were were some churn you levels, in more historically recent I weeks. come this see those at down started but that comments high the statement there in that think to

just that you a I bit could So comments. if around those share more wondered there's color

these XX% to around on week, each people questions, churn I And historically, talk the think, happening, of the mean about where a on I within XX% churn think the calls ADCOs, I rates think view our sort I our asked -- see to they Yes. management been XX%. have give what's XX%. And when going.

before the and IPOs, companies sort that the some we the on cuts I new the the has churn expectations. around we is in the referred terms earlier companies result, that and reduced seeing the of in tech valuations think pressure also to of the conversation what a reduced. and of in that I we're of as tech staffing, digital is reduced being And on pressure pressure think salaries reductions,

for your further or As queue the time, in speakers back remarks. at any additional there closing turn to call would are no questions I the like this to

thank Well, much. you very

the another later Day. today call for We Memorial It's have U.S.

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