Author: ally

PPHC Announces Full Year Results for 2023

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Unaudited Preliminary results for the year ended 31 December 2023

Record financial performance and excellent strategic progress with acquisitions deepening geographic reach and policy expertise

Public Policy Holding Company, Inc., the government relations and public affairs group providing clients with a fully integrated and comprehensive range of services, is pleased to announce its unaudited full year results for the year ended 31 December 2023.

Financial Highlights

  • Revenue increased 24.1% to a record $135.0m (2022: $108.8m), growing by 2.0% organically, displaying the inherent strength of the Group through the economic cycle
  • Underlying EBITDA rose by 12.4% to $35.1m (2022: $31.2m), in line with market expectations and achieved at a margin of 26.0%, within the Group’s target range of between 25% and 30%
  • Underlying Net Income increased by 13.9% to $26.5m (2022: $23.3m)
  • Balance sheet remains strong with cash generated from operations of $21.6m and a year-end net cash position of $3.4m, comprising $14.3m cash offset by outstanding debt of $10.9m, reflecting very low leverage levels and positioning the Group well to deliver further value accretive M&A
  • Declaration of a final dividend of $0.097 per Common Outstanding Share, taking the total dividend for 2023 to $0.143 per share, representing an increase of 2% year-on-year and in line with the Group’s dividend policy

Operational Highlights

  • Excellent strategic progress, sustaining and organically growing the core offering in challenging markets while pursuing successful, value accretive acquisitions to broaden services and geographic reach
  • Ended 2023 as the #1 federal lobbying agency in the US1, with the Group’s federal lobbying firms collectively reporting $68.3m of disclosed revenue
  • Successful acquisition of MultiState Associates, Inc. (“MultiState” or “MultiState Associates”) on 1 March 2023, proving the attractiveness of the holding company proposition to unlock growth and value
    • Multistate delivered a strong full-year performance, contributing healthily to Group revenue and EBITDA
  • All business segments achieved year-on-year growth, demonstrating the strength and breadth of the Group’s services
  • Improved client diversification, with the top 10 Group clients representing 8.8% of total revenue, down from 9.6% in 2022 and reflecting sustained progress from 2021, when the top 10 represented 13.1%
  • The Group ended 2023 with c.1,200 total clients, compared c.850 in 2022. The current client roster includes 137 Fortune 500 clients and related trade associations, while directly serving 44 Fortune 100 clients
  • Number of clients spending $100k or greater per year was 468, a year-on-year increase of 23%
    • The growth of clients spending $100k or greater demonstrates the Group is successfully cross selling its services with multiple operating companies advising on specific policy areas and specialisms
    • Launched Concordant Advisory, the Group’s first organically developed offering, in November 2023 to enhance cross-selling between operating companies and geographies and better support clients with strategic communications challenges, for which public policy is paramount for their growth
  • Continued focus on people, with the lowest employee attrition rates on record, while adding key talent in specialist areas including AI, aerospace and defence, technology and energy transformation. These sector specialisms are central to today’s broader policy agenda
  • Number of employees as at 31 December 2023 totalled 333, up from 244 as at 31 December 2022

1Source: 2023 Lobbying Disclosure Act

Current trading and Outlook

  • Current year-to-date trading is promising, and the Group continues to grow organically, supported by new client wins across sectors, including RTX Corporation (formerly Raytheon Technologies), Phillips 66, Nuclear Innovation Alliance, Dynavax Technologies and Fight Colorectal Cancer 
  • In the medium term the Group expects organic revenue growth, on average, to be between 5% and 10%, supplemented by growth from M&A
  • The Group continues to target an Underlying EBITDA margin of between 25% and 30%
  • Pipeline of strategic and accretive acquisition opportunities in the US and Europe remains strong, as the Group looks to broaden its market position in federal and state advocacy, as well as in the adjacent strategic communications and public affairs markets

Stewart Hall, CEO, commented:

“PPHC has performed extremely well in what have undoubtedly been some of the toughest macro conditions we have seen since our inception ten years ago. In 2023, the unpredictability of politics – not just in the US but globally – was mixed with increased interest rates and broader macro-uncertainty. It is therefore testament to our broad offering and operating companies that our clients are ever-increasingly relying on our support in navigating these difficult times.

“The increasing demand for our services has enabled us to generate solid levels of organic growth and healthy expansion in total client numbers. Strategically, we are progressing well with a healthy pipeline of value accretive acquisition opportunities and the strength of our holding company model being validated by the outperformance of our two most recent acquisitions.

“While global uncertainty persists in 2024, we are extremely well positioned to capitalise on what continues to be a positive trajectory for our wider markets. We therefore look forward with a high degree of confidence in our people, operations, expertise and ability to continue to deliver profitable growth in the years ahead.”

Read the full report here.

Forbes Tate Partners Cements Leadership at the Intersection of Financial Services Policy and Issue Advocacy with Addition of Ed Hill

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WASHINGTON – Today, Bloomberg top performing lobbying firm Forbes Tate Partners (FTP) revealed that it is entering the next phase of its financial services policy advocacy with the addition of Ed Hill as a partner in its government relations practice. Hill’s decades of corporate and association experience will elevate the firm’s growing financial services practice and provide FTP clients with a unique ability to evaluate their needs through a financial policy lens and pursue winning issue campaign solutions.

Ed Hill is a respected and influential national authority on financial services issues. Prior to joining FTP, Hill served as Senior Vice President and Head of Government Affairs for the Bank Policy Institute (BPI) leading federal advocacy efforts on the priorities of member companies, including those across capital and liquidity, consumer banking, technology, and national security. With the full array of FTP’s campaign capabilities – including media relations, digital communications, state advocacy, and data-driven insights – at his disposal, he and FTP will be able to offer clients a variety of tailored, multi-faceted ways to shape policy outcomes and navigate the political, regulatory, legislative, and reputational landscape.

Read the full press release from Forbes Tate Partners.

AI Impact on Society – Research from Seven Letter

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This week, Seven Letter published new public polling data revealing Americans’ attitudes towards artificial intelligence.

Some key takeaways from the responses include:

  • AI is good for businesses, younger Americans and respondents personally
  • AI is bad for the middle and working classes, older Americans and society in general
  • Largest drivers of concern are related to information security, potential job loss and possible discrimination from AI models
  • Strong bipartisan appetite for government regulation of AI

Read the full article and presentation on Seven Letter’s blog.

PPHC Hosts Breakfast Celebrating Black History Month

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WASHINGTON – Last Thursday, Public Policy Holding Company hosted a Black History Month breakfast reception at the Hart Senate Office Building. The reception featured Senators Laphonza Butler (D-Calif.), Cory Booker (D-N.J.), and Raphael Warnock (D-Ga.) who spoke to the crowd of nearly 200 about the importance of elevating black voices in Congress. Alpine Group Principal and PPHC Board Member, Keenan Austin-Reed (pictured above with the three guests of honor) kicked off the morning’s events.

Other notable attendees included Maya Wiley (President & CEO at the Leadership Conference on Civil Rights), Dr. Kimberly McClain (Assistant Secretary for Congressional & Intergovernmental Relations, U.S. Department of Housing & Urban Development), and Shaniqua McClendon (Vice President of Political Strategy, Crooked Media).

Check out Playbook PM’s recap of the event here.

 

Alpine Group adds legislative and policy veteran Shayne Woods as Vice President

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WASHINGTON- Alpine Group announces Shayne Woods as the newest addition to their team, joining the premier lobbying firm as vice president. Woods’ most recent role was as senior legislative advisor to Senator Tim Scott, focusing on issue areas including healthcare, budget, and commerce/science/transportation.

Before joining Senator Scott’s team in 2021, Woods spent six years working in the US House of Representatives. Prior to his work in both the House and Senate, Woods founded two healthcare startups: FwdHealth, Inc. and Scipio Strategies. Woods brings his background in tech and healthcare to the table at a time when innovators of emerging technologies like AI and gene therapies face a challenging regulatory landscape.

Les Spivey, CEO and Managing Principal of Alpine Group commented:

“We are excited to welcome Shayne, whose deep understanding of legislative processes, particularly in health care and tech, will be invaluable in our work.”

Read the full press release from Alpine Group.

2023 LDA Rankings Show PPHC in Top Spot Once Again

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WASHINGTON- Lobbying Disclosure Act (LDA) revenue rankings for 2023 have been released. PPHC’s three federal lobbying firms were all individually ranked in the top 20 with PPHC’s total disclosed revenue overtaking the top spot for another year in a row. LDA revenues from Forbes Tate Partners, Crossroads Strategies, and Alpine Group reached a combined total of $68.3 million, showing PPHC growth with a 3.6% increase in disclosed federal lobbying revenue compared to 2022’s rankings.

Stewart Hall, CEO of PPHC, commented:

“Last year was not straightforward in terms of the provision of lobbying services, so to have maintained the top spot in the whole year while each of our three contributing agencies delivered solid federal lobbying growth is no mean feat. It is a testament to the quality of our operating agencies and their excellent people.”

Visit POLITICO for more details on 2023 LDA revenue rankings.

Crossroads Strategies adds Lucy Panza as Executive Vice President

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WASHINGTON- Crossroads Strategies adds Lucy Panza to their dynamic, bipartisan team as executive vice president. Panza joins Crossroads after three years at Amazon where her most recent role was senior manager of public policy. Before her work in the private sector, Panza spent over eight years working in the Senate, starting as a legislative assistant for Senator Barbara Boxer before serving as counsel in current Senate Majority Leader Chuck Schumer’s leadership office and on the Judiciary Committee. Panza brings to the Crossroads team expertise in a wide range of judiciary issues that include competition, tech and commerce.

In an interview with Politico Influence, Panza said “I’m thrilled to be combining my corporate experience with my government and Senate-specific experience to bring all of those skills to bear for our clients who are at Crossroads and to contribute to this fantastic team.”

Read Politico Influence’s coverage of the story here.

Keenan Austin Reed Appointed to Executive Director of PPHC Board

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Public Policy Holding Company, Inc., the leading government relations and public affairs group of companies providing a comprehensive range of advisory services, is pleased to announce the appointment of Keenan Austin Reed to the Board as an Executive Director with immediate effect.

Ms Austin Reed is a Principal at Alpine Group, a top 20 Washington-based lobbying firm and one of PPHC’s eight operating companies. She joined Alpine Group in 2021 and is responsible for advocacy across a broad range of policy areas, including contributing to initiatives led by the Congressional Black Caucus, the House Committee on Energy and Commerce and the Biden Administration, where she has deployed expertise in campaigns, media, energy, climate, health, technology and telecommunications.

Ms Austin Reed was recently named Lobbyist of the Year (2023) by the Washington Government Relations Group and is Founder and Chair of Black Women Leading, a non-profit group that supports the empowerment of black women in public service, notably the Black Women’s Congressional Alliance. She has served in a number of policy and political roles, including as Chief of Staff to Congressman Donald McEachin (2017-2020), Florida Political Director to Secretary Hillary Clinton (2016), Chief of Staff to the Council of the District of Columbia Councilmember David Grosso (2015-2016) and Deputy Chief of Staff/Senior Advisor to Florida Congresswoman Frederica Wilson (2011-2015).

In addition to her executive responsibilities, Ms Austin Reed holds various directorships and leadership roles including Advisory Council Chair at GlobalWIN, Vice Chair of the Women’s Congressional Policy Institute, a member of the Congressional Black Caucus Foundation’s Corporate Advisory Board and Vice Chair of So Others Might Eat’s Corporate Advisory Board.

Simon Lee, Chairman of PPHC, commented:

“Keenan is one of the top lobbyists in Washington and has made a highly positive impact at Alpine Group and PPHC. Her advisory expertise and wider interests, along with strong relationships among clients and political stakeholders, will further strengthen the Board as PPHC continues to expand its offering and broaden its geographical footprint.”

Keenan Austin Reed, Executive Director of PPHC, commented:

“PPHC is already well established in the US and I am looking forward to supporting the Board as we continue to execute the growth strategy and build on the strong foundations already in place.”

Forbes Tate Partners and Seven Letter Named to PRNEWS’ 2024 Agency Elite Top 100

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WASHINGTON — PPHC firms Forbes Tate Partners (FTP) and Seven Letter have both been named to PRNEWS’ Agency Elite Top 100 for 2024. The comprehensive list recognizes the most innovative PR and communications firms in the business. This is the second year in a row that the two PPHC firms have received this honor.

“We are proud to have two of our agencies recognized in this prestigious list which follows our sustained leading performance within the Lobbying Disclosure Act rankings, where PPHC recently retained the number one spot with $17.1m of disclosed LDA revenue for the third quarter of 2023.

“Our operating companies, their commitment and work accomplished for clients is world-class and we look forward to supporting them in the years ahead as demand for services continues to increase.”

-Stewart Hall, CEO of PPHC

See the full 2024 Agency Elite Top 100 list here.

PPHC Launches Concordant Advisory

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Supports organic growth and expands PPHC’s offering in corporate advisory services.

Public Policy Holding Company, Inc., the government relations and public affairs group of companies providing a comprehensive range of advisory services, is pleased to announce the launch of Concordant Advisory (“Concordant”), a new Group operating entity that integrates its policy expertise and communications capabilities.

Delivering results under a unified plan, team, and pricing structure, Concordant will provide its clients with industry-leading government relations, public affairs, audience insight capabilities and full-service, strategic communications.

Based in Chicago, Concordant will be led by Sarah Wills, CEO. Ms Wills is a former Executive Vice President and Chief Corporate Affairs Officer at Cardinal Health, where she presided over communications, government relations, enterprise marketing and brand. Prior to Cardinal Health, Sarah served in leadership roles within government relations, communications and strategy at GE, and led corporate affairs at Tempus, an AI-enabled precision medicine business. Before her corporate career, Sarah spent fifteen years in politics and policy, initially as an Associate for David Axelrod and Associates, then several years as a Legislative Assistant on Capitol Hill, Senior Policy Counsel to the Governor of New Jersey, and Executive Director for New Jobs for New York, a 501(c)(3) launched by then U.S. Senator Hillary Rodham Clinton.

Concordant will build multi-disciplinary teams to service client organisations that are investing for long-term growth and resilience, such as AI, progress towards a healthier planet, advancements in precision medicine and the reconfiguration of global supply chains.

Stewart Hall, CEO of PPHC, commented:

“Today’s launch of Concordant is aligned with PPHC’s organic growth strategy and will accelerate our expansion into the growing market for corporate advisory solutions. 

“I’m pleased to welcome Sarah to PPHC and look forward to partnering with her to continue to build and integrate PPHC’s unique bi-partisan policy expertise, nationwide coverage, in addition to broad public affairs and communications capabilities across our operating companies.”

Sarah Wills, CEO of Concordant, added:

“Globally, policy and politics shape every major market theme, from technology driven growth opportunities, to the risks generated from shifting geopolitics and monetary policy. In today’s uniquely dynamic market, Concordant is set to further empower c-suite leaders and boards with more control over their operating landscapes.”

Visit Concordant’s website at concordantadvisory.com

See the full RNS here.