Author: ally

PPHC Announces Interim Financial Results for the First Half of 2023

Posted on by ally

Strong growth within target margin levels; on track to meet full year expectations

Public Policy Holding Company, Inc., the leading government relations and public affairs group of companies providing a comprehensive range of advisory services, today announces its interim results for the six months ended 30 June 2023 (“2023H1”).

Summary

Group revenue increased 27% to $65.7m, with a strong Q2 as encouraging trends returned following the delayed formation of the majority leadership in the United States House of Representatives in the early part of this year. PPHC continues to pursue its stated M&A strategy to add certain complementary specialisations to its portfolio, as well as to expand its footprint both in the US and into the EU and UK. The strong momentum in Q2 has positioned the Group well for the remainder of the year and the Group remains on track to meet full year expectations for FY23, with management retaining immediate and long-term confidence in the Group’s growth and margin prospects.

2023H12022H1Change
Group Revenue$65.7m$51.7m+27%
Underlying EBITDA$16.9m$14.4m+17%
Underlying EBITDA margin25.8%27.9%(2.2)pt
Underlying Profit after Tax$12.7m$10.7m+18%
Underlying EPS basic11.4c9.9c+15%
Underlying EPS fully diluted11.1c9.9c+12%
Interim Dividend$0.0460$0.0450+2%
Net Debt / (Cash) at period-end$9.1m-$(17.8)m$(27.0)m

Financial Highlights

  • 2023H1 Group revenue increased 27% to $65.7m (2022H1: $51.7m), with organic growth of 4%.
  • Underlying EBITDA of $16.9m is up 17% year-on-year and was achieved at a 25.8% margin, in line with the Group’s ongoing intention to manage the business between 25% and 30% at margin level.
  • Underlying Profit after Tax of $12.7m was 18% ahead of 2022H1, while Underlying EPS (basic) increased by 15%.
  • The Group continued to generate cash, supporting ongoing M&A ambitions and the wider capital allocation policy. At period-end, Net Debt totalled $9.1m (2022FY: Net Cash of $17.8m), with the movement a result of the use of debt to fund the EPS accretive acquisition of MultiState Associates, Inc. (“MultiState”) in March 2023.
  • The Board retains strong confidence in the Group’s ongoing prospects and has declared an Interim Dividend of $0.046 per Common Outstanding Share.

Operational Highlights

  • The Group advanced its strategy of supplementing organic growth with M&A, acquiring MultiState Associates on 1 March 2023. The integration process is ongoing and MultiState is performing ahead of internal expectations. Alongside the acquisition of KP Public Affairs in October 2022, the Group now has seven operating companies providing a greater range of services in more US geographies.
  • Diversification of revenue continues with the top 10 Group clients representing 8.0% of total revenue in 2023H1, versus 10.0% at the end of FY22 and 13.1% for FY21.
  • Revenue distribution by segment reflects the inclusion of new business lines following the MultiState acquisition, while existing lines remained stable: Government Relations 71% (2022H1: 73%); Public Affairs 25% (2022H1: 27%); and Diversified Services 4% (2022H1: Nil).
  • A broadening client base is supported by sustained high retention rates, with the Group now directly representing almost 40% of the Fortune 100 (and 22% of the Fortune 500), in addition to many more via their trade associations that the Group serves.
    • New Group clients include The Aluminium Association, General Electric, Hertz, Life Science Logistics, Morton’s Salt, Veterinary Medical Association and Rain Industries.
    • Client retention rate (based on # of clients) in 2023H1 was 80%, with Government Relations above 90% and Public Affairs between 65% and 70%.
    • Each of the Group’s business lines (Government Relations, Public Affairs and Diversified Services) achieved growth when compared to 2022H1.
  • The quality of PPHC’s operating companies continues to be reflected in the 2023 Lobbying Disclosure Act rankings, with Group agencies, when aggregated, topping the rankings as the US market leader in both Q1 and Q2 2023, as well as for the whole of FY22.
  • Strengthening of the management team with Roel Smits being promoted to CFO in July as part of the executive succession planning process and retention of Bill Chess as an Executive Director in the newly created position of Chief Administrative Officer.

Outlook and medium-term guidance

  • The strong performance delivered in H1 has set the Group up well for the remainder of the year.
    • The Group is on track to meet full year market expectations.
    • Revenue growth between 20% and 30%, with the FY23 organic growth rate expected to be similar to H1 and supported by the better-than-expected performance of recently acquired companies.
    • The Underlying EBITDA margin for H2 is expected to be around the same level as in H1.
  • The focus in H2 will be on driving client retention rates, new business generation and the continued cross-selling of services across the Group’s broad operating company base to support organic growth prospects.
  • The market for public affairs and professional lobbying services in key geographies remains fragmented and the Board continues to view the Group as a natural consolidator in the sector with favourable bipartisan positioning.
  • The pipeline of acquisition opportunities under development in the US, UK and Mainland Europe remains strong in an active market for the strategic communications sector. The Group is actively seeking to expand its portfolio of operating companies internationally while adding complementary specialisations.
  • The Board retains its confidence in the ongoing prospects for the Group and reiterates its medium-term guidance to achieve:
    • organic revenue growth between 5% and 10%;
    • incremental growth from future M&A; and
    • an Underlying EBITDA margin between 25% and 30%.

Stewart Hall, CEO of PPHC, commented:

“We are a very well-placed business, with increasingly diversified operating companies and growing capabilities at a time of massive change in the interplay of business and government around the world. Corporates, charities, NGOs and other client organisations are increasing their spend in the specific advisory areas that we specialise in, and our high-quality operating companies generate excellent client retention rates and provide high quality earnings.

“Even though the delayed formation of Congress slowed the start of Q1, clients returned leading to improved Q2 trading and setting the Group up well for H2. Our lobbying operations continue to be market leading in the US, consistently at the top of the Lobbying Disclosure Act rankings, while demand for our specialist public affairs advisory work continues to increase.

“The two recent acquisitions are successfully integrating and benefiting from their association with the Group.  Acquisitions are an important part of our strategy as they enable us to effectively diversify the client offering into new areas while increasing our geographical reach. This, in time, supports our ongoing ability to generate a good level of organic growth as we have greater reach and more sought-after services to cross-refer clients. The markets we operate in remain highly fragmented and we are a natural sector consolidator, with a well advanced and exciting pipeline of acquisition opportunities in the US, UK and Mainland Europe.

“Our people continue to be the lifeblood of the business, and we are proud that they consistently generate work that achieves incredible results on behalf of clients. Their knowledge and depth of experience attracts high levels of premier new business, and we now directly retain well over a fifth of the Fortune 500 as clients.

“These interim results show that in a difficult macro-economic environment, we remain well positioned to deliver good growth at target margin levels and can continue to capitalise on the clear market opportunity. The runway for growth and expansion remains significant, and we look forward to continuing to achieve for our people, clients, wider stakeholders and investors in the second half and beyond.”

Read the full results statement here.

Alpine Group’s Keenan Austin Reed Awarded Lobbyist of the Year at WGRG’s Tin Cup Awards

Posted on by ally

WASHINGTON, DC – Washington Government Relations Group (WGRG) held the twelfth Annual Tin Cup Awards on Wednesday evening where the group presented Keenan Austin Reed, Executive Vice President at Alpine Group, with the prestigious Reginald “Reg” Gilliam Lobbyist of the Year Award. The Reginald “Reg” Gilliam Lobbyist of the Year Award is granted annually to an outstanding African-American lobbyist selected by WGRG, a non-partisan, independent, volunteer association whose goal is to enhance the leadership prowess and careers of African-American government relations professionals.

“I am both honored and humbled to receive this award from a group of my peers. I feel fortunate to do such rewarding work alongside so many talented professionals. Lobbying is a team sport, and this recognition underscores our collective effort to serve as a critical tool of our democracy, amplify the concerns of the unheard and champion causes that desperately need attention. I remain committed to using my platform to drive positive change.”

–Keenan Austin Reed, Executive Vice President, Alpine Group

In addition to her work at Alpine, Reed is the Chair and Co-Founder of the Black Women’s Congressional Alliance (BWCA), Advisory Council Chair at GlobalWIN, a member of the Congressional Black Caucus Foundation’s (CBCF) Corporate Advisory Council, and Vice Chair of SOME’s (So Others May Eat) Corporate Advisory Board. In May of 2021, Reed testified before the House Select Committee on the Modernization of Congress. The focus of her testimony was recruiting, maintaining, and empowering diverse congressional staff.

Read Alpine Group’s full press release here.

PPHC Announces Chief Financial Officer Succession; Roel Smits Elevated

Posted on by ally

PPHC is pleased to announce that, as part of its executive officer succession planning, Roel Smits has been appointed as Chief Financial Officer with immediate effect.

Founding CFO Bill Chess remains on the Board as Executive Director and will assume the new position of Chief Administrative Officer, reporting directly to the CEO, where he will drive internal efficiency and collaboration.

Roel joined PPHC in May 2022 as Deputy CFO. He has previously acted as CFO at Kantar, the data analytics and brand consulting company owned by WPP and Bain Capital, most recently for Americas and prior also for Asia-Pacific and Africa. Prior to that, he performed senior roles at WPP (Senior VP of Corporate Development) and Dutch private equity family office HAL Investments BV. Roel has a Masters in Finance from London Business School, as well as a Masters in Economics from Erasmus University Rotterdam and an MBA in Marketing from Michigan State University.  

It is the intention that Roel will join the Board in due course subject to completion of customary due diligence and regulatory procedures.

“The appointment of Roel to the position of CFO and of Bill to the new position of Chief Administrative Officer is the result of careful succession planning and adds additional strength to the executive team. Since our IPO in December 2021, we have created a business delivering revenues of over $100m with strong EBITDA margins between 25% and 30% and we are looking forward to building on this progress in the coming years.“

-Simon Lee, Chairman, PPHC

“I am delighted to take on the role of PPHC’s CFO as we continue to deliver our clearly stated strategy and benefit from the ever-increasing importance that corporates globally are placing on government relations and public affairs. In addition to continued organic growth, PPHC is actively in discussions with a number of potential acquisition targets, both in the US and internationally – I am excited by the potential for significant growth that lies head for the Group. With deepest respect I thank my predecessor Bill Chess for all he has done for PPHC since its inception in 2014.”

-Roel Smits, CFO, PPHC

“Being part of the team that has propelled PPHC into becoming the largest provider of federal lobbying services in the US continues to be an incredible journey.  I’m looking forward to working in my new role to drive internal efficiency and collaboration as we deliver on our organic and acquisitive growth plan.“

-Bill Chess, Chief Administrative Officer, PPHC

PPHC Remains the Leader in Bloomberg Government 2022 Report

Posted on by ally

WASHINGTON – PPHC maintains its position as leader of the top-performing lobbying firms in Bloomberg Government’s 2022 report. Forbes Tate Partners, Crossroads Strategies, and Alpine Group Partners each earned a spot on the list, with their combined 2022 federal lobbying disclosure revenues reaching $66.5 million.

Forbes Tate Partners once again earned a spot amongst the top 10 lobbying firms with the highest revenue, while Crossroads Strategies was named as a ‘Standout’ firm. The standout distinction was given to firms that retained 80% or more of their clients from 2021, retained 60% or more of their clients over three years, and earned $550,000 or more in revenue per lobbyist.

 

Read the full RNS announcement from PPHC here.

Download the full Bloomberg Government 2022 report here.

Seven Letter Adds Two New Senior-level Positions for Public Affairs Veterans Blair Taylor & Maura Hogan

Posted on by ally

WASHINGTON – Seven Letter announced today that two new senior-level positions have been added to the strategic communications firm for new hires Blair Taylor and Maura Hogan. Taylor will be operating out of Seven Letter’s DC office as Managing Director, while Hogan will be working in Seven Letter’s Boston office as Senior Director.

Taylor joins the firm after almost a decade of work in the public sector as a senior communications advisor on Capitol Hill. Her most recent role as Communications Director for Senator Richard Shelby (R-AL) and the Senate Appropriations Committee involved the navigation of many high-intensity, crisis situations including those related to the COVID-19 pandemic, the war in Ukraine, the withdrawal from Afghanistan, and the fight for border wall resources. Blair not only brings this experience with her to Seven Letter, but also a deep expertise in appropriations, defense, energy, health care, and financial services policy.

Hogan brings over a decade of both public and private sector experience to Seven Letter and her most recently held position was Senior Vice President at Direct Impact-Burson, Cohn, & Wolf (BCW). Hogan’s addition enhances the firm’s corporate communications offering with her specialization in corporate reputation, executive visibility, public affairs, and ESG/sustainability. Prior to joining the private sector, Hogan worked at the US Department of State where she served as digital communications advisor to Secretary of State John F. Kerry and chief liaison to the White House Office of Digital Strategy.

Read more about the newest additions to the Seven Letter team here.

PPHC Chief Strategy Officer, Thomas Gensemer, featured in PRWeek’s Pride in PR List

Posted on by ally

PPHC’s own Thomas Gensemer, Chief Strategy Officer, is profiled in today’s edition of PRWeek’s Pride in PR list. This is the second annual Pride in PR list, celebrating Pride Month by highlighting leading professionals in the PR industry who identify as LGBTQ. Each day throughout the month of June, a different inspirational LGBTQ communications professional is recognized and profiled.

As a veteran of public affairs, advertising, and political campaigning, Thomas Gensemer offers his advice and insight throughout the profile. On how colleagues can be true allies all year round, not just during Pride Month, Gensemer answered:

“Realize the interconnectedness of our issues, and how the incredibly fast progress and commercialization of Pride can sometimes hide, or at least misrepresent, some ongoing struggles for equality.”

You can read Thomas Gensemer’s full profile here.

See PRWeek’s 2023 Pride in PR list here.

PPHC Announces Full Year Results for 2022

Posted on by ally

Full Year Results for the year ended 31 December 2022

Strong financial performance and sustained growth, driven by robust market demand.

Public Policy Holding Company, Inc., (“PPHC”, the “Group” or the “Company”), the government relations and public affairs group providing clients with a fully integrated and comprehensive range of services, is pleased to announce its Full Year Results for the year ended 31 December 2022.

Financial Highlights:

  • Revenue of $108.8m (2021: $99.3m) reflects an increase of 9.5%, and 6.6% organic growth.
  • Underlying EBITDA of $31.2m (2021: $32.0m) is in line with guidance and was achieved at a margin of 28.7%, within our target range of 25 to 30%. This followed a truly exceptional 2021 which was driven by a combination of high pandemic-related spending and the change of control in the White House
  • Underlying Profit after tax was $23.3m (2021: $23.9m), reflecting a margin of 21.4%
  • Year-end Net Cash stood at $21.0 million, an increase of 17.9%
  • Declared a final dividend of $0.095 per Common Outstanding Share. This would take the total dividend for 2022 to $0.14 per share.

Operational Highlights:

  • Successful acquisition of California based KP Public Affairs on 1 October 2022, proving attractiveness of holding company value proposition and equity + cash offer.
  • Key talent additions into Group’s founding firms, including deepening specialisations in new/renewable energy policy, defence contracting, financial services, and trade policy, all service areas that are central to today’s policy agenda.
  • Improved client diversification, with the top 10 Group clients representing 9.6% of total revenue, down from 13.1% in 2021.
  • 2022 total clients greater than 850, up from over 730 in 2021; includes over 100 Fortune 500 clients and related trade associations.
  • Number of clients spending $100,000 or greater per year was 384, a gain of 11%, and representing 43% of our total clients.

Current Trading and Outlook:

  • MultiState Associates acquired on 1 March 2023, elevating our number of clients to over 1,000.
  • Continued growth into 2023, fuelled by ongoing policy debates over government spending and the passage of historic spending measures in 2021-22 into sectors such as healthcare, essential manufacturing, renewable/alternative energies, and infrastructure.
  • Management expects revenue to grow by 5 to 10% organically, supplemented by growth from past and future M&A transactions.
  • The Group continues to manage the business such that the Underlying EBITDA as percentage of revenue is estimated to be between 25% and 30%.
  • Continuing to build an attractive pipeline of strategic acquisition opportunities in the federal and state advocacy markets, as well as in the adjacent strategic communications and public affairs markets in the US and abroad.

“PPHC is well placed to deliver continued growth, both organically and via acquisitions. We have already completed the acquisition of MultiState, expanding our service offering and opening new opportunities for collaboration between our operating businesses. We look forward to continued strategic and financial progress in 2023.“

-Stewart Hall, CEO

Read the full report here.

Crossroads Strategies adds seasoned experts from both parties with Cheryl Jaeger, Partner, and Ivelisse Porroa-Garcia, Senior Vice President

Posted on by ally

WASHINGTON – Crossroads Strategies expands its dynamic, bipartisan team with two new hires from both political parties. Cheryl Jaeger is Crossroads’ newest Partner, bringing with her over two decades of experience in both the public and private sectors. Jaeger’s experience on Capitol Hill includes serving as Senior Policy Advisor to former House Majority Leader Eric Cantor and former Senator Roy Blunt, and as professional staff on the House Energy and Commerce Committee.

Ivelisse Porroa-Garcia was also added to the Crossroads team as a Senior Vice President. Born and raised in Lima, Peru, Porroa-Garcia is currently the Vice President of the Hispanic Lobbyists Association. Prior to taking on the new position at Crossroads, Porroa-Garcia served as Policy Director for the Congressional Hispanic Caucus and on the staffs of Representative Paul Ruiz and Senator Barbara Boxer.

Read the full press release here.