Business Wire | Sep 28, 2021 07:11AM EDT

Endava Announces Fourth Quarter Fiscal Year 2021 & Fiscal Year 2021 Results

Sep. 28, 2021

LONDON--(BUSINESS WIRE)--Sep. 28, 2021--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, 2021, the fourth quarter of its 2021 fiscal year ("Q4 FY2021") and for the fiscal year ended June 30, 2021 ("FY2021").

"Endava delivered excellent results for Q4 FY2021, with revenue of 133.6 million, an increase of 47.7% Year on Year. Our strong financial performance in FY2021 was driven by continued increased demand for digital services in all regions and verticals," said John Cotterell, Endava's CEO.

FOURTH QUARTER FISCAL YEAR 2021 FINANCIAL HIGHLIGHTS:

* Revenue for Q4 FY2021 was 133.6 million, an increase of 47.7% compared to 90.5 million in the same period in the prior year. * Revenue growth rate at constant currency (a non-IFRS measure) was 54.9% for Q4 FY2021, compared to 16.5% in the same period in the prior year. * Profit before tax for Q4 FY2021 was 18.5 million, compared to 6.7 million in the same period in the prior year. * Adjusted profit before tax (a non-IFRS measure) for Q4 FY2021 was 29.3 million, compared to 15.2 million in the same period in the prior year, or 21.9% of revenue, compared to 16.8% of revenue in the same period in the prior year. * Profit for the period was 15.9 million in Q4 FY2021, resulting in a diluted EPS of 0.28, compared to profit of 6.1 million and diluted EPS of 0.11 in the same period in the prior year. * Adjusted profit for the period (a non-IFRS measure) was 23.6 million in Q4 FY2021, resulting in adjusted diluted EPS (a non-IFRS measure) of 0.41, compared to adjusted profit for the period of 12.8 million and adjusted diluted EPS of 0.23 in the same period in the prior year.

FISCAL YEAR 2021 FINANCIAL HIGHLIGHTS:

* Revenue for FY2021 was 446.3 million, an increase of 27.2% compared to 351.0 million in the prior year. * Revenue growth rate at constant currency (a non-IFRS measure) was 29.6% for FY2021, compared to 21.0% in the prior year. * Profit before tax for FY2021 was 54.4 million, compared to profit before tax of 25.3 million in the prior year. * Adjusted profit before tax (a non-IFRS measure) for FY2021 was 92.1 million, compared to 68.6 million in the prior year, or 20.6% of revenue, compared to 19.5% of revenue in the prior year. * Profit for FY2021 was 43.4 million, resulting in a diluted EPS of 0.76, compared to profit of 21.4 million and diluted EPS of 0.38 in the prior year. * Adjusted profit for FY2021 (a non-IFRS measure) was 73.9 million, resulting in adjusted diluted EPS (a non-IFRS measure) of 1.30, compared to adjusted profit of 56.0 million and adjusted diluted EPS of 1.00 in the prior year.

CASH FLOW:

* Net cash from operating activities was 34.9 million in Q4 FY2021, compared to 1.9 million in the same period in the prior year. * Net cash from operating activities was 88.4 million in FY2021, compared to 40.2 million in the prior year. * Adjusted free cash flow (a non-IFRS measure) was 32.6 million in Q4 FY2021, compared to 0.4 million in the same period in the prior year. * Adjusted free cash flow (a non-IFRS measure) was 82.7 million in FY2021, compared to 31.4 million in the prior year. * At June 30, 2021, Endava had cash and cash equivalents of 69.9 million, compared to 101.3 million at June 30, 2020.

OTHER METRICS FOR THE QUARTER ENDED JUNE 30, 2021:

* Headcount reached 8,883 at June 30, 2021, with 7,872 average operational employees in Q4 FY2021, compared to a headcount of 6,624 at June 30, 2020 and 5,936 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 85 at June 30, 2021, compared to 65 at June 30, 2020. * Top 10 clients accounted for 36% of revenue in Q4 FY2021, compared to 40% in the same period in the prior year. * By geographic region, 37% of revenue was generated in North America, 21% was generated in Europe, 40% was generated in the United Kingdom and 2% was generated in the rest of the world in Q4 FY2021. 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. This compares to 52% from Payments and Financial Services, 28% from TMT and 20% from Other in the same period in the prior year.

OTHER METRICS FOR THE FISCAL YEAR ENDED JUNE 30, 2021:

* Top 10 clients accounted for 35% of revenue in FY2021, compared to 38% of revenue in the prior year. * By geographic region, 31% of revenue was generated in North America, 24% was generated in Europe, 42% was generated in the United Kingdom and 3% was generated in the rest of the world in FY2021. This compares to 29% in North America, 24% in Europe, 44% in the United Kingdom and 3% in the rest of the world in the prior year. * By industry vertical, 51% of revenue was generated from Payments and Financial Services, 27% from TMT and 22% from Other. This compares to 53% from Payments and Financial Services, 26% from TMT and 21% from Other in the prior year.

OUTLOOK:

At this time, the general economic environment remains fluid and it continues to be challenging to anticipate the ultimate full scope and duration of the impact of the COVID-19 pandemic. Endava is providing guidance for the first quarter of its 2022 fiscal year and its full 2022 fiscal year based upon what it currently sees in its markets.

First Quarter Fiscal Year 2022:

Endava expects revenues will be in the range 143.0 million to 145.0 million, representing constant currency revenue growth of between 56.0% and 58.0%. Endava expects adjusted diluted EPS to be in the range of 0.42 to 0.44 per share.

Full Fiscal Year 2022:

Endava expects revenues will be in the range of 608.0 million to 615.0 million, representing constant currency growth of between 38.0% and 40.0%. Endava expects adjusted diluted EPS to be in the range of 1.61 to 1.67 per share.

This above guidance for Q1 Fiscal Year 2022 and the Full Fiscal Year 2022 assumes the exchange rates at the end of August (when the exchange rate was 1 British Pound to 1.38 US Dollar and 1.17 Euro).

Endava is not able, at this time, to provide an outlook for IFRS diluted EPS for Q1 FY2022 or FY2022 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.

The guidance provided above is forward-looking in nature. Actual results may differ materially. See the cautionary note regarding "Forward-Looking Statements" below.

CONFERENCE CALL DETAILS:

The Company will host a conference call at 8:00 am EST today, September 28, 2021, to review its Q4 FY2021 and FY2021 results. To participate in Endava's Q4 FY2021 and FY2021 earnings conference call, please dial in at least five minutes prior to the scheduled start time (833) 921-1651 or (778) 560-2811 for international participants, Conference ID 4027796.

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 Friday, October 15, 2021.

ABOUT ENDAVA PLC:

Endava is a leading next-generation technology services provider and helps accelerate disruption by delivering rapid evolution to enterprises. Using distributed enterprise agile at scale, Endava collaborates with its clients, seamlessly integrating with their teams, catalysing ideation and delivering robust solutions. Endava helps its clients become digital, experience-driven businesses by assisting them in their journey from idea generation to development and deployment of products, platforms and solutions. It services clients in the following industries: Payments and Financial Services, TMT and "Other," which includes Consumer Products, Retail, Mobility and Healthcare. Endava had 8,883 employees (including directors) as of June 30, 2021 located in Australia, North America, Singapore and Western Europe and delivery centres in Bosnia & Herzegovina, Bulgaria, Croatia, Moldova, North Macedonia, Romania, Serbia, Slovenia, Argentina, Colombia, Mexico, Uruguay and Venezuela.

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, 2020 were used to convert revenue for the fiscal quarter ended June 30, 2021 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.

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, discretionary EBT bonus, amortisation of acquired intangible assets, realised and unrealised foreign currency exchange gains and losses, and net gain on disposal of subsidiary. Share-based compensation expense, amortisation of acquired intangible assets and unrealized foreign currency gains are non-cash expenses. 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.

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 2022 and the full fiscal year 2022 and the challenges presented by the ongoing COVID-19 pandemic and associated global economic uncertainty. 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 precautions taken in response to the pandemic 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 favourable pricing and utilisation 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 remediate the identified material weaknesses and 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, 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 on Form 20-F filed with the Securities and Exchange Commission ("SEC") on September 28, 2021. 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.

CONDENSED CONSOLIDATEDSTATEMENTS OF COMPREHENSIVEINCOME

Twelve Months Ended Three Months Ended

June 30 June 30

2021 2020^(1) 2021 2020^(1)

lb'000 lb'000 lb'000 lb'000

REVENUE 446,298 350,950 133,622 90,463

Cost of sales

Direct cost of sales (271,707 ) (233,352 ) (82,052 ) (58,871 )

Allocated cost of sales (20,758 ) (17,447 ) (6,225 ) (4,545 )

Total cost of sales (292,465 ) (250,799 ) (88,277 ) (63,416 )

GROSS PROFIT 153,833 100,151 45,345 27,047

Selling, general and (90,290 ) (75,110 ) (26,874 ) (19,719 )administrative expenses

Net impairment (losses)/ (4 ) (3,169 ) 1,317 (466 )gains on financial assets

OPERATING PROFIT 63,539 21,872 19,788 6,862

Net finance (expense) / (9,184 ) 1,169 (1,263 ) (113 )income

Gain on sale of subsidiary - 2,215 - -

PROFIT BEFORE TAX 54,355 25,256 18,525 6,749

Tax on profit on ordinary (10,914 ) (3,846 ) (2,577 ) (640 )activities

PROFIT FOR THE PERIOD 43,441 21,410 15,948 6,109

OTHER COMPREHENSIVE INCOME

Items that may bereclassified subsequently to profit or loss:

Exchange differences ontranslating foreign (9,782 ) (2,240 ) (270 ) 1,358 operations

TOTAL COMPREHENSIVE INCOMEFOR THE PERIOD ATTRIBUTABLE 33,659 19,170 15,678 7,467 TO OWNERS OF THE PARENT



EARNINGS PER SHARE (EPS):

Weighted average number of 55,220,298 53,423,575 55,637,037 54,182,147 shares outstanding - Basic

Weighted average number ofshares outstanding - 57,050,613 56,065,080 57,549,709 56,403,794 Diluted

Basic EPS (lb) 0.79 0.40 0.29 0.11

Diluted EPS (lb) 0.76 0.38 0.28 0.11

(1) The presentation of the income statement has been changed to separately disclose the net impairment losses on financial assets on the face of the Consolidated Statement of Comprehensive Income (refer to Note 3C of our Annual Report on Form 20-F for the fiscal year ended June 30, 2021 for details).

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, 2021 June 30, 2020

lb'000 lb'000

ASSETS - NON-CURRENT

Goodwill 124,417 56,995

Intangible assets 69,550 38,751

Property, plant and equipment 13,324 12,747

Lease right-of-use assets 57,193 51,134

Deferred tax assets 18,674 13,340

Financial assets 363 639

TOTAL 283,521 173,606

ASSETS - CURRENT

Trade and other receivables 118,303 82,614

Corporation tax receivable 938 2,922

Financial assets 563 584

Cash and cash equivalents 69,884 101,327

TOTAL 189,688 187,447

TOTAL ASSETS 473,209 361,053

LIABILITIES - CURRENT

Lease liabilities 13,543 11,132

Trade and other payables 78,634 58,599

Corporation tax payable 4,294 1,449

Contingent consideration 5,718 1,409

Deferred consideration 624 3,907

TOTAL 102,813 76,496

LIABILITIES - NON CURRENT

Lease liabilities 50,142 42,233

Deferred tax liabilities 10,010 5,861

Deferred consideration 9,370 -

Other liabilities 205 136

TOTAL 69,727 48,230

EQUITY

Share capital 1,114 1,099

Share premium 247 221

Merger relief reserve 30,003 25,527

Retained earnings 283,059 214,638

Other reserves (13,599 ) (3,817 )

Investment in own shares (155 ) (1,341 )

TOTAL 300,669 236,327

TOTAL LIABILITIES AND EQUITY 473,209 361,053

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Twelve Months Ended June 30

Three Months Ended June 30

2021

2020

2021

2020

lb'000

lb'000

lb'000

lb'000

OPERATING ACTIVITIES

Profit for the period

43,441

21,410

15,948

6,109

Income tax charge

10,914

3,846

2,577

640

Non-cash adjustments

55,547

28,622

16,459

8,560

Tax paid

(3,120)

(5,876)

(2,332)

(1,430)

UK research and development credit received

2,930

-

-

-

Net changes in working capital

(21,360)

(7,759)

2,266

(11,982)

Net cash from operating activities

88,352

40,243

34,918

1,897

INVESTING ACTIVITIES

Purchase of non-current assets (tangibles and intangibles)

(6,113)

(9,880)

(2,361)

(1,805)

Proceeds from disposal of non-current assets

193

195

43

45

Acquisition of business / subsidiaries, consideration in cash

(109,991)

(26,595)

(44,049)

-

Proceeds from sale of subsidiary net of cash disposed of

-

2,744

-

-

Cash and cash equivalents acquired with subsidiaries

8,733

3,289

6,011

-

Interest received

84

499

8

22

Net cash used in investing activities

(107,094)

(29,748)

(40,348)

(1,738)

FINANCING ACTIVITIES

Proceeds from sublease

565

668

141

262

Repayment of borrowings

-

(956)

-

(1)

Repayment of lease liabilities

(11,828)

(9,903)

(3,386)

(2,746)

Interest paid

(911)

(829)

(237)

(226)

Grant received

228

888

(39)

227

Proceeds from sale of EBT shares

-

30,917

-

16,120

Issue of shares

26

93

17

32

Net cash from financing activities

(11,920)

20,878

(3,504)

13,668

Net change in cash and cash equivalents

(30,662)

31,373

(8,934)

13,827

Cash and cash equivalents at the beginning of the period

101,327

70,172

78,836

87,159

Exchange differences on cash and cash equivalents

(781)

(218)

(18)

341

Cash and cash equivalents at the end of the period

69,884

101,327

69,884

101,327

CONDENSED CONSOLIDATED STATEMENTS OFCASH FLOWS

Twelve Months Ended Three Months Ended June 30 June 30

2021 2020 2021 2020

lb'000 lb'000 lb'000 lb'000

OPERATING ACTIVITIES

Profit for the period 43,441 21,410 15,948 6,109

Income tax charge 10,914 3,846 2,577 640

Non-cash adjustments 55,547 28,622 16,459 8,560

Tax paid (3,120) (5,876) (2,332) (1,430)

UK research and development credit 2,930 - - -received

Net changes in working capital (21,360) (7,759) 2,266 (11,982)

Net cash from operating activities 88,352 40,243 34,918 1,897



INVESTING ACTIVITIES

Purchase of non-current assets (6,113) (9,880) (2,361) (1,805)(tangibles and intangibles)

Proceeds from disposal of 193 195 43 45non-current assets

Acquisition of business / (109,991) (26,595) (44,049) -subsidiaries, consideration in cash

Proceeds from sale of subsidiary net - 2,744 - -of cash disposed of

Cash and cash equivalents acquired 8,733 3,289 6,011 -with subsidiaries

Interest received 84 499 8 22

Net cash used in investing (107,094) (29,748) (40,348) (1,738)activities



FINANCING ACTIVITIES

Proceeds from sublease 565 668 141 262

Repayment of borrowings - (956) - (1)

Repayment of lease liabilities (11,828) (9,903) (3,386) (2,746)

Interest paid (911) (829) (237) (226)

Grant received 228 888 (39) 227

Proceeds from sale of EBT shares - 30,917 - 16,120

Issue of shares 26 93 17 32

Net cash from financing activities (11,920) 20,878 (3,504) 13,668

Net change in cash and cash (30,662) 31,373 (8,934) 13,827equivalents



Cash and cash equivalents at the 101,327 70,172 78,836 87,159beginning of the period

Exchange differences on cash and (781) (218) (18) 341cash equivalents

Cash and cash equivalents at the end 69,884 101,327 69,884 101,327of the period

RECONCILIATION OF IFRS FINANCIAL MEASURES TO NON-IFRS FINANCIAL MEASURES

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

2021

2020

2021

2020

REVENUE GROWTH RATE AS REPORTED UNDER IFRS

27.2

%

21.9

%

47.7

%

18.1

%

Foreign exchange rates impact

2.4

%

(0.9

%)

7.2

%

(1.6

%)

REVENUE GROWTH RATE AT CONSTANT CURRENCY INCLUDING WORLDPAY CAPTIVE

29.6

%

21.0

%

54.9

%

16.5

%

Impact of Worldpay Captive

0.8

%

3.2

%

-

3.9

%

PRO-FORMA REVENUE GROWTH RATE AT CONSTANT CURRENCY ADJUSTED FOR THE SALE OF THE WORLDPAY CAPTIVE

30.4

%

24.2

%

54.9

%

20.4

%

RECONCILIATION OF IFRS FINANCIAL MEASURES TO NON-IFRS FINANCIAL MEASURES

RECONCILIATION OF REVENUE GROWTH RATE AS REPORTED UNDER IFRS TO REVENUE GROWTHRATE AT CONSTANT CURRENCY:

Twelve Months Three Months ended ended June 30 June 30

2021 2020 2021 2020

REVENUE GROWTH RATE AS REPORTED UNDER IFRS 27.2 % 21.9 % 47.7 % 18.1 %

Foreign exchange rates impact 2.4 % (0.9 %) 7.2 % (1.6 %)

REVENUE GROWTH RATE AT CONSTANT CURRENCY 29.6 % 21.0 % 54.9 % 16.5 %INCLUDING WORLDPAY CAPTIVE

Impact of Worldpay Captive 0.8 % 3.2 % - 3.9 %

PRO-FORMA REVENUE GROWTH RATE AT CONSTANTCURRENCY ADJUSTED FOR THE SALE OF THE WORLDPAY 30.4 % 24.2 % 54.9 % 20.4 %CAPTIVE

RECONCILIATION OF ADJUSTED PROFIT BEFORE TAX AND ADJUSTED PROFIT FOR THE PERIOD:

Twelve Months Ended June 30

Three Months Ended June 30

2021

2020

2021

2020

lb'000

lb'000

lb'000

lb'000

PROFIT BEFORE TAX

54,355

25,256

18,525

6,749

Adjustments:

Share-based compensation expense

24,427

15,663

6,909

4,588

Discretionary EBT bonus

-

27,874

-

3,108

Amortisation of acquired intangible assets

6,725

4,075

3,380

1,142

Foreign currency exchange losses / (gains), net

6,546

(2,054

)

515

(390

)

Net gain on disposal of subsidiary

-

(2,215

)

-

-

Total adjustments

37,698

43,343

10,804

8,448

ADJUSTED PROFIT BEFORE TAX

92,053

68,599

29,329

15,197

PROFIT FOR THE PERIOD

43,441

21,410

15,948

6,109

Adjustments:

Adjustments to profit before tax

37,698

43,343

10,804

8,448

Tax impact of adjustments

(7,241

)

(8,787

)

(3,158

)

(1,714

)

ADJUSTED PROFIT FOR THE PERIOD

73,898

55,966

23,594

12,843

Diluted EPS (lb)

0.76

0.38

0.28

0.11

Adjusted diluted EPS (lb)

1.30

1.00

0.41

0.23

RECONCILIATION OF ADJUSTED PROFIT BEFORE TAX AND ADJUSTED PROFIT FOR THEPERIOD:

Twelve Months Three Months Ended Ended June 30 June 30

2021 2020 2021 2020

lb'000 lb'000 lb'000 lb'000



PROFIT BEFORE TAX 54,355 25,256 18,525 6,749

Adjustments:

Share-based compensation expense 24,427 15,663 6,909 4,588

Discretionary EBT bonus - 27,874 - 3,108

Amortisation of acquired intangible assets 6,725 4,075 3,380 1,142

Foreign currency exchange losses / (gains), 6,546 (2,054 ) 515 (390 )net

Net gain on disposal of subsidiary - (2,215 ) - -

Total adjustments 37,698 43,343 10,804 8,448

ADJUSTED PROFIT BEFORE TAX 92,053 68,599 29,329 15,197



PROFIT FOR THE PERIOD 43,441 21,410 15,948 6,109

Adjustments:

Adjustments to profit before tax 37,698 43,343 10,804 8,448

Tax impact of adjustments (7,241 ) (8,787 ) (3,158 ) (1,714 )

ADJUSTED PROFIT FOR THE PERIOD 73,898 55,966 23,594 12,843



Diluted EPS (lb) 0.76 0.38 0.28 0.11

Adjusted diluted EPS (lb) 1.30 1.00 0.41 0.23

RECONCILIATION OF NET CASH FROM OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW

Twelve Months Ended June 30

Three Months Ended June 30

2021

2020

2021

2020

lb'000

lb'000

lb'000

lb'000

Net cash from operating activities

88,352

40,243

34,918

1,897

Adjustments:

Grant received

228

888

(39

)

227

Purchases of non-current assets (tangibles and intangibles)

(5,920

)

(9,685

)

(2,318

)

(1,760

)

Adjusted Free cash flow

82,660

31,446

32,561

364

RECONCILIATION OF NET CASH FROM OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW

Twelve Months Three Months Ended Ended June 30 June 30

2021 2020 2021 2020

lb'000 lb'000 lb'000 lb'000



Net cash from operating activities 88,352 40,243 34,918 1,897

Adjustments:

Grant received 228 888 (39 ) 227

Purchases of non-current assets (tangibles (5,920 ) (9,685 ) (2,318 ) (1,760 )and intangibles)

Adjusted Free cash flow 82,660 31,446 32,561 364

SUPPLEMENTARY INFORMATION

SHARE-BASED COMPENSATION EXPENSE

Twelve Months Ended June 30

Three Months Ended June 30

2021

2020

2021

2020

lb'000

lb'000

lb'000

lb'000

Direct cost of sales

14,760

8,941

4,246

2,793

Selling, general and administrative expenses

9,667

6,722

2,663

1,795

Total

24,427

15,663

6,909

4,588

SUPPLEMENTARY INFORMATION

SHARE-BASED COMPENSATION EXPENSE

Twelve Months Three Months Ended Ended June 30 June 30

2021 2020 2021 2020

lb'000 lb'000 lb'000 lb'000



Direct cost of sales 14,760 8,941 4,246 2,793

Selling, general and administrative 9,667 6,722 2,663 1,795expenses

Total 24,427 15,663 6,909 4,588

DEPRECIATION AND AMORTISATION

Twelve Months Ended June 30

Three Months Ended June 30

2021

2020

2021

2020

lb'000

lb'000

lb'000

lb'000

Direct cost of sales

15,923

12,559

4,580

3,406

Selling, general and administrative expenses

9,221

6,166

4,076

1,692

Total

25,144

18,725

8,656

5,098

DEPRECIATION AND AMORTISATION

Twelve Months Three Months Ended Ended June 30 June 30

2021 2020 2021 2020

lb'000 lb'000 lb'000 lb'000



Direct cost of sales 15,923 12,559 4,580 3,406

Selling, general and administrative 9,221 6,166 4,076 1,692expenses

Total 25,144 18,725 8,656 5,098

EMPLOYEE BENEFIT TRUST DISCRETIONARY BONUS

Twelve Months Ended June 30

Three Months Ended June 30

2021

2020

2021

2020

lb'000

lb'000

lb'000

lb'000

Direct cost of sales

-

25,402

-

2,847

Selling, general and administrative expenses

-

2,472

-

261

Total

-

27,874

-

3,108

EMPLOYEE BENEFIT TRUST DISCRETIONARY BONUS

Twelve Months Three Months Ended Ended June 30 June 30

2021 2020 2021 2020

lb'000 lb'000 lb'000 lb'000



Direct cost of sales - 25,402 - 2,847

Selling, general and administrative - 2,472 - 261expenses

Total - 27,874 - 3,108

EMPLOYEES, TOP 10 CUSTOMERS AND REVENUE SPLIT

Twelve Months Ended June 30

Three Months Ended June 30

2021

2020

2021

2020

Closing number of total employees (including directors)

8,883

6,624

8,883

6,624

Average operational employees

6,943

5,633

7,872

5,936

Top 10 customers %

35

%

38

%

36

%

40

%

Number of clients with > lb1m of revenue

(rolling 12 months)

85

65

85

65

Geographic split of revenue %

North America

31

%

29

%

37

%

31

%

Europe

24

%

24

%

21

%

24

%

UK

42

%

44

%

40

%

42

%

Rest of World (RoW)

3

%

3

%

2

%

3

%

Industry vertical split of revenue %

Payments and Financial Services

51

%

53

%

51

%

52

%

TMT

27

%

26

%

25

%

28

%

Other

22

%

21

%

24

%

20

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210928005615/en/

CONTACT: INVESTOR CONTACT: Endava Plc Laurence Madsen, Investor Relations Manager Investors@endava.com