Business Wire | Sep 15, 2020 07:10AM EDT

Endava Announces Fourth Quarter Fiscal Year 2020 & Fiscal Year 2020 Results

Sep. 15, 2020

LONDON--(BUSINESS WIRE)--Sep. 15, 2020--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, 2020, the fourth quarter of its 2020 fiscal year ("Q4 FY2020") and for the fiscal year ended June 30, 2020 ("FY2020").

"Endava delivered another strong quarter with revenue for Q4 FY2020 of 90.5 million, an increase of 18.1% Year on Year on a reported basis, and our pro-forma constant currency growth rate reflecting the sale of the Worldpay Captive was 20.4% Year on Year. Despite the challenging macroeconomic environment, we finished the fiscal year strongly with revenue totaling 351.0 million, an increase of 21.9% Year on Year on a reported basis, and our pro-forma constant currency growth rate reflecting the sale of the Worldpay Captive was 24.2% Year on Year. The demand environment remains robust, and the pandemic has accelerated the urgency for digital transformation," said John Cotterell, Endava's CEO.

FOURTH QUARTER FISCAL YEAR 2020 FINANCIAL HIGHLIGHTS:

* Revenue for Q4 FY2020 was 90.5 million, an increase of 18.1% compared to 76.6 million in the same period in the prior year. * Revenue growth rate at constant currency (a non-IFRS measure) was 16.5% for Q4 FY2020 compared to 22.7% in the same period in the prior year. * Profit before tax for Q4 FY2020 was 6.7 million compared to profit before tax of 10.4 million in the same period in the prior year. * Endava incurred a true-up charge of 3.1 million in Q4FY2020 relating to the previously disclosed funding on May 5, 2020 of the second and final tranche of the non-recurring discretionary employee bonus by the Endava Limited Guernsey Benefit Trust ("EBT"), the beneficiaries of which are Endava's employees. * Adjusted profit before tax (a non-IFRS measure) for Q4 FY2020 was 15.2 million, compared to 13.5 million in the same period in the prior year, or 16.8% of revenue, compared to 17.6% of revenue in the same period in the prior year. * Profit for the period was 6.1 million in Q4 FY2020, resulting in a diluted EPS of 0.11, compared to profit for the period of 8.2 million and diluted EPS of 0.15 in the same period in the prior year. * Adjusted profit for the period (a non-IFRS measure) was 12.8 million in Q4 FY2020, resulting in adjusted diluted EPS (a non-IFRS measure) of 0.23 compared to adjusted profit for the period of 11.0 million and adjusted diluted EPS of 0.20 in the same period in the prior year.

FISCAL YEAR 2020 FINANCIAL HIGHLIGHTS:

* Revenue for FY2020 was 351.0 million, an increase of 21.9% compared to 288 million in the prior year. * Revenue growth rate at constant currency (a non-IFRS measure) was 21.0% for FY2020 compared to 31.1% in the prior year. * Profit before tax for FY2020 was 25.3 million compared to profit before tax of 30.1 million in the prior year. * Adjusted profit before tax (a non-IFRS measure) for FY2020 was 68.6 million, compared to 52.0 million in the prior year, or 19.5% of revenue, compared to 18.0% of revenue in the prior year. * Profit for the period was 21.4 million in FY2020, resulting in a diluted EPS of 0.38, compared to profit for the period of 24.0 million and diluted EPS of 0.44 in the prior year. * Adjusted profit for the period (a non-IFRS measure) was 56.0 million in FY2020, resulting in adjusted diluted EPS (a non-IFRS measure) of 1.00 compared to adjusted profit for the period of 41.9 million and adjusted diluted EPS of 0.76 in the prior year.

CASH FLOW:

* Net cash from operating activities was 1.9 million in Q4 FY2020 compared to 11.1 million in the same period in the prior year. * Net cash from operating activities was 40.2 million in FY2020 compared to 35.3 million in the same period in the prior year. * Adjusted free cash flow (a non-IFRS measure) was 0.4 million in Q4 FY2020 compared to 8.9 million in the same period in the prior year. * Adjusted free cash flow (a non-IFRS measure) was 31.4 million in FY2020 compared to 29.8 million in the same period in the prior year. * At June 30, 2020, Endava had cash and cash equivalents of 101.3 million, compared to 70.2 million at June 30, 2019.

OTHER METRICS FOR THE QUARTER ENDED JUNE 30, 2020:

* Headcount (including directors) reached 6,624 at June 30, 2020, with 5,936 average operational employees in Q4 FY2020, compared to a headcount of 5,754 at June 30, 2019 and 5,143 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 65 at June 30, 2020, compared to 63 at June 30, 2019. * Top 10 clients accounted for 40% of revenue in Q4 FY2020, unchanged from the same period 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 Q4 FY2020. This compares to 28% in North America, 27% in Europe and 45% in the United Kingdom in the same period in the prior year. * By industry vertical, 52% of revenue was generated from Payments and Financial Services, 28% from TMT and 20% from Other. These percentages are unchanged compared to the prior year.

OTHER METRICS FOR THE FISCAL YEAR ENDED JUNE 30, 2020:

* Top 10 clients accounted for 38% of revenue in FY2020, unchanged compared to the same period in the prior year. * By geographic region, 29% of revenue was generated in North America, 24% was generated in Europe, 44% was generated in the United Kingdom and 3% was generated in the rest of the world in FY2020. This compares to 27% in North America, 28% in Europe and 45% in the United Kingdom in the same period in the prior year. * By industry vertical, 53% of revenue was generated from Payments and Financial Services, 26% from TMT and 21% from Other. This compares to 53% from Payments and Financial Services, 27% from TMT and 20% from Other in the prior year.

COVID-19 UPDATE:

Endava is working regularly with its clients and its employees to adapt to the uncertain and continually evolving situation related to the ongoing COVID-19 pandemic. The Company has an established Business Continuity Management System (BCMS) in line with the international standard for business continuity, ISO 22301:2019, and has created a framework for Business Continuity Management which requires development of specific plans at the delivery unit level to deal with significant disaster events, including pandemics. As a company with employees, customers, partners and investors across the globe, Endava believes in the importance of being a good citizen and is doing its part to help slow the spread of the virus. To this end, the Company enabled close to 100% of its employees to work remotely in compliance with relevant government advice and suspended all non-essential travel worldwide for employees. In addition, Endava cancelled or postponed company-sponsored events, including employee attendance at industry events, to date without impact on utilisation or velocity of work.

BUSINESS HIGHLIGHTS:

On August 17, 2020 Endava announced the acquisition of the Comtrade Digital Services business ("CDS"). CDS was formerly a division of Comtrade Group B.V. ("Comtrade"). CDS, with its headquarters in Dublin, Ireland and delivery centres across the Adriatic, is a provider of strategic software engineering services and solutions and serves clients predominantly in the European Union but also elsewhere in Europe and in the United States.

With this acquisition, Endava reinforces its presence in South Eastern Europe with more teams who reimagine the relationship between people and technology. CDS's client base strengthens Endava's industry verticals in payments and financial services, TMT and subsectors within "Other" including travel, logistics, energy, government and healthcare.

CDS has a highly skilled workforce with approximately 460 technical staff and delivery centres located in Slovenia, Serbia and Bosnia.

OUTLOOK:

At this time, it is difficult to predict the duration and full scope of the direct and indirect potential impacts of the ongoing COVID-19 pandemic. Due to this ongoing uncertainty related to the potential impacts of COVID-19 on the Company's full year financial results, Endava is not providing a full year 2021 financial outlook at this time. Endava is providing guidance for Q1 2021.

First Quarter Fiscal Year 2021:

Endava expects revenues will be in the range 93.0m to 94.0m, representing constant currency revenue growth of between 18.5% and 20.0%. Endava expects adjusted diluted EPS to be in the range of 0.21 to 0.22 per share.

Endava's guidance regarding constant currency revenue growth is pro-forma for the sale of Endava Technology SRL, also referred to as "the Worldpay Captive," to Worldpay. The transaction closed on August 31, 2019.

This quarter, we are providing guidance for Q1 Fiscal Year 2021 using the exchange rates at the end of August, when the exchange rate was 1 British Pound to 1.33 US Dollar and 1.12 Euro.

Endava is not able, at this time, to provide an outlook for IFRS diluted EPS for Q1 FY2021 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 not able, at this time, to reconcile to an outlook for revenue growth not at constant currency (including pro-forma for the sale of the Worldpay Captive) 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 15, 2020, to review its Q4 FY2020 and FY2020 results. To participate in Endava's Q4 FY2020 and FY2020 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 9559719.

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 2, 2020.

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, Logistics and Healthcare. Endava had 6,624 employees (including directors) as of June 30, 2020 located in offices in North America and Western Europe and delivery centres in Romania, Moldova, Bulgaria, Serbia, North Macedonia, Argentina, Uruguay, Venezuela, and Colombia.

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 the Worldpay Captive, 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, 2019 were used to convert revenue for the fiscal quarter ended June 30, 2020 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, initial public offering expenses incurred, Sarbanes-Oxley compliance readiness expenses incurred, net gain on disposal of subsidiary, fair value movement of contingent consideration, secondary offering expenses incurred, and stamp duty on transfer of shares. Share-based compensation expense, amortisation of acquired intangible assets, unrealized foreign currency gains and losses and fair value movement of contingent consideration 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," "predict," 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 2021 and the challenges presented by the ongoing COVID-19 pandemic and the 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; Endava's cash flows and results of operations may be adversely affected if it is unable to collect on billed and unbilled receivables from clients; Endava's revenue, margins, results of operations and financial condition may be materially adversely affected if general economic conditions in Europe, the United States or the global economy worsen; Endava's sales of services, operating results or profitability may experience significant variability and past results may not be indicative of future performance; 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; the size of our addressable market and market trends; Endava's ability to adapt to technological change and innovate solutions for its 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 15, 2020. 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 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Twelve Months Ended Three Months Ended June 30 June 30

2020 2019 2020 2019

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

REVENUE 350,950 287,930 90,463 76,618

Cost of sales

Direct cost of sales (233,352) (174,152) (58,871) (46,796)

Allocated cost of sales (17,447) (14,951) (4,545) (3,901)

Total cost of sales (250,799) (189,103) (63,416) (50,697)

GROSS PROFIT 100,151 98,827 27,047 25,921

Selling, general and administrative (78,279) (65,857) (20,185) (17,248)expenses

OPERATING PROFIT 21,872 32,970 6,862 8,673

Net finance (expense) / income 1,169 (2,870) (113) 1,774

Gain on sale of subsidiary 2,215 - - -

PROFIT BEFORE TAX 25,256 30,100 6,749 10,447

Tax on profit on ordinary (3,846) (6,093) (640) (2,219)activities

PROFIT FOR THE PERIOD 21,410 24,007 6,109 8,228

OTHER COMPREHENSIVE INCOME

Items that may be reclassified subsequently to profit or loss:

Exchange differences on translating (2,240) (5,987) 1,358 (3,622)foreign operations

TOTAL COMPREHENSIVE INCOME FOR THEPERIOD ATTRIBUTABLE TO OWNERS OF 19,170 18,020 7,467 4,606THE PARENT



EARNINGS PER SHARE (EPS):

Weighted average number of shares 53,423,575 50,116,979 54,182,147 52,370,444outstanding - Basic

Weighted average number of shares 56,065,080 55,026,223 56,403,794 55,195,272outstanding - Diluted

Basic EPS (lb) 0.40 0.48 0.11 0.16

Diluted EPS (lb) 0.38 0.44 0.11 0.15

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, 2020 June 30, 2019

lb'000 lb'000 (Restated) ^(1)

ASSETS - NON-CURRENT

Goodwill 56,885 36,760

Intangible assets 38,751 28,910

Property, plant and equipment 12,747 10,579

Lease right-of-use assets 51,134 -

Financial assets 639 -

Deferred tax assets 13,340 9,550

TOTAL 173,496 85,799

ASSETS - CURRENT

Trade and other receivables 82,614 65,917

Corporation tax receivable 2,922 790

Financial assets 584 -

Cash and cash equivalents 101,327 70,172

TOTAL 187,447 136,879

TOTAL ASSETS 360,943 222,678

LIABILITIES - CURRENT

Lease liabilities 11,132 21

Trade and other payables 58,599 48,502

Corporation tax payable 1,449 2,920

Contingent consideration 1,442 1,244

Deferred consideration 3,764 1,516

TOTAL 76,386 54,203

LIABILITIES - NON CURRENT

Lease liabilities 42,233 -

Deferred tax liabilities 5,861 2,033

Other liabilities 136 113

TOTAL 48,230 2,146

EQUITY

Share capital 1,099 1,089

Share premium 221 128

Merger relief reserve 25,527 21,573

Retained earnings 214,638 146,963

Other reserves (3,817 ) (1,577 )

Investment in own shares (1,341 ) (1,847 )

TOTAL 236,327 166,329

TOTAL LIABILITIES AND EQUITY 360,943 222,678

(1) The restatement refers to a reclassification of 17,143,000 from share premium to merger relief reserve. Refer to Note 3 of the financial statements included in the 20-F.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Twelve Months Ended Three Months Ended June 30 June 30

2020 2019 2020 2019

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

OPERATING ACTIVITIES

Profit for the period 21,410 24,007 6,109 8,228

Income tax charge 3,846 6,093 640 2,219

Non-cash adjustments 28,622 21,390 8,560 3,120

Tax paid (5,876 ) (5,904 ) (1,430 ) (2,263 )

UK research and development credit - 1,278 - - received

Net changes in working capital (7,759 ) (11,516 ) (11,982 ) (245 )

Net cash from operating activities 40,243 35,348 1,897 11,059



INVESTING ACTIVITIES

Purchase of non-current assets (tangible (9,880 ) (7,383 ) (1,805 ) (2,230 )and intangible)

Proceeds from disposal of non-current 195 57 45 24 assets

Acquisition of business / subsidiaries (26,595 ) (3,201 ) - (59 )(net of cash acquired)

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

Cash and cash equivalents acquired with 3,289 - - - subsidiaries

Interest received 499 476 22 190

Net cash used in investing activities (29,748 ) (10,051 ) (1,738 ) (2,075 )



FINANCING ACTIVITIES

Proceeds from sublease 668 - 262 -

Proceeds from borrowings - 3,500 - -

Repayment of borrowings (956 ) (23,547 ) (1 ) (9 )

Repayment of lease liabilities (9,903 ) - (2,746 ) -

Interest paid (829 ) (343 ) (226 ) (63 )

Grant received 888 1,784 227 -

Net proceeds from initial public - 44,828 - - offering

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

Issue of shares 93 133 32 48

Net cash from financing activities 20,878 26,355 13,668 (24 )

Net change in cash and cash equivalents 31,373 51,652 13,827 8,960



Cash and cash equivalents at the 70,172 15,048 87,159 59,339 beginning of the period

Exchange differences on cash and cash (218 ) 3,472 341 1,873 equivalents

Cash and cash equivalents at the end of 101,327 70,172 101,327 70,172 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 Three Months ended ended June 30 June 30

2020 2019 2020 2019

REVENUE GROWTH RATE AS REPORTED UNDER IFRS 21.9 % 32.3 % 18.1 % 24.6 %

Foreign exchange rates impact (0.9 %) (1.2 %) (1.6 %) (1.9 %)

REVENUE GROWTH RATE AT CONSTANT CURRENCY 21.0 % 31.1 % 16.5 % 22.7 %INCLUDING WORLDPAY CAPTIVE

Impact of Worldpay Captive 3.2 % - 3.9 % -

PRO-FORMA REVENUE GROWTH RATE AT CONSTANT 24.2 % 31.1 % 20.4 % 22.7 %CURRENCY EXCLUDING WORLDAY CAPTIVE

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

Twelve Months Three Months Ended Ended June 30 June 30

2020 2019 2020 2019

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



PROFIT BEFORE TAX 25,256 30,100 6,749 10,447

Adjustments:

Share-based compensation expense 15,663 12,022 4,588 3,332

Discretionary EBT bonus 27,874 - 3,108 -

Amortisation of acquired intangible assets 4,075 3,472 1,142 863

Foreign currency exchange (gains)/losses, (2,054 ) (2,945 ) (390 ) (1,683 )net

Initial public offering expenses incurred - 1,055 - -

Sarbanes-Oxley compliance readiness expenses - 1,440 - 213 incurred

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

Secondary offering expenses incurred - 1,009 - 703

Stamp duty on transfer of shares - 10 - (375 )

Fair value movement of contingent - 5,805 - - consideration

Total adjustments 43,343 21,868 8,448 3,053

ADJUSTED PROFIT BEFORE TAX 68,599 51,968 15,197 13,500



PROFIT FOR THE PERIOD 21,410 24,007 6,109 8,228

Adjustments:

Adjustments to profit before tax 43,343 21,868 8,448 3,053

Tax impact of adjustments (8,787 ) (3,969 ) (1,714 ) (308 )

ADJUSTED PROFIT FOR THE PERIOD 55,966 41,906 12,843 10,973



Diluted EPS (lb) 0.38 0.44 0.11 0.15

Adjusted diluted EPS (lb) 1.00 0.76 0.23 0.20

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

Twelve Months Three Months Ended Ended June 30 June 30

2020 2019 2020 2019

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



Net cash from operating activities 40,243 35,348 1,897 11,059

Adjustments:

Grant received 888 1,784 227 -

Net purchases of non-current assets (9,685 ) (7,326 ) (1,760 ) (2,206 )(tangible and intangible)

Adjusted Free cash flow 31,446 29,806 364 8,853

SUPPLEMENTARY INFORMATION

SHARE-BASED COMPENSATION EXPENSE

Twelve Months Three Months Ended Ended June 30 June 30

2020 2019 2020 2019

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



Direct cost of sales 8,941 5,724 2,793 2,137

Selling, general and administrative 6,722 6,298 1,795 1,195 expenses

Total 15,663 12,022 4,588 3,332

DEPRECIATION AND AMORTISATION

Twelve Months Three Months Ended Ended June 30 June 30

2020 2019 2020 2019

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



Direct cost of sales 12,559 3,841 3,406 971

Selling, general and administrative 6,166 4,059 1,692 1,029 expenses

Total 18,725 7,900 5,098 2,000

EMPLOYEE BENEFIT TRUST DISCRETIONARY BONUS

Twelve Months Ended Three Months June 30 Ended June 30

2020 2019 2020 2019

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



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

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

Total 27,874 - 3,108 -

EMPLOYEES, TOP 10 CUSTOMERS AND REVENUE SPLIT

Twelve Months Three MonthsSix Months Ended December 31 Ended Ended June 30 June 30

2020 2019 2020 2019



Closing number of total employees (including 6,624 5,754 6,624 5,754directors)

Average operational employees 5,633 4,902 5,936 5,143



Top 10 customers % 38 % 38 % 40 % 40 %

Number of clients with > lb1m of revenue 65 63 65 63(rolling 12 months)



Geographic split of revenue %

North America 29 % 27 % 31 % 28 %

Europe 24 % 28 % 24 % 27 %

UK 44 % 45 % 42 % 45 %

Rest of World (RoW) 3 % - 3 % -

Industry vertical split of revenue %

Payments and Financial Services 53 % 53 % 52 % 52 %

TMT 26 % 27 % 28 % 28 %

Other 21 % 20 % 20 % 20 %

View source version on businesswire.com: https://www.businesswire.com/news/home/20200915005718/en/

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