Author: ally

PPHC Announces Full Year Results for 2022

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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

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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.

PPHC Acquires MultiState to Broaden Client Offering and Footprint

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  • $22m acquisition “fits perfectly” with PPHC strategy – PPHC CEO, Stewart Hall
  • Geographical footprint broadened to all 50 US states and across Canada
  • Enables PPHC to extend client offering into more areas, e.g. research and compliance
  • Significant cross-referring of business between MultiState and existing PPHC brands expected

The government relations and public affairs holding company PPHC is continuing to execute on its stated growth strategy and has acquired MultiState Associates, one of the largest state and local government relations specialists, for $22m. Read the full acquisition announcement here.

The deal gives PPHC a significantly expanded footprint with operations in all 50 US states as well as across Canada. It also enables PPHC to broaden its client offering given MultiState’s strength in the areas of research and compliance.

The combination of the two businesses is therefore highly complementary and a significant level of cross-referring of business between MultiState and the six other brands within PPHC’s broader network is expected. PPHC’s other brands include Crossroads Strategies, Forbes Tate Partners, Seven Letter, O’Neill & Associates, Alpine Group Partners and KP Public Affairs.

MultiState was founded in 1984 and has its headquarters in Alexandria, Virginia. It has over 300 corporate clients including several Fortune 500 constituents and has gained particular expertise over the years in representing some of the world’s best-known organisations on issues of local, state, and national importance. MultiState’s 77 employees – including all senior executives – will remain with the business.

PPHC has been undergoing significant growth and acquired KP Public Affairs, the largest advocacy and PR firm in California, for $25m in October 2022 – the most recent acquisition prior to MultiState. The pipeline of potential acquisition opportunities under development remains strong and, in considering each possible deal, PPHC will continue to look to broaden its geographical footprint, both in the US and internationally, and its service offering.

Stewart Hall, CEO of PPHC, commented:

“The acquisition of MultiState fits perfectly with our strategy of broadening our geographic footprint into key US state capitals and metropolitan areas, while extending our offering by adding key service capabilities in research and compliance. MultiState has a talented team and its strategic capabilities will solidify PPHC’s leadership position as the largest and most comprehensive public policy firm in the US. Linking our well-established businesses in Washington DC, Sacramento, California and Boston, Massachusetts to MultiState’s network in 50 states makes the Group uniquely suited to support corporate clients in the most complex risks and opportunities they face.

“Our growth in the resilient and fragmented $17+bn US strategic communications market is driven by increased inter-connectedness of federal, state and international policies and risk exposure. I am confident that our combined businesses will benefit greatly from new capabilities, new geographies and new client opportunities.”

Joseph Crosby, CEO of MultiState, commented:

“PPHC is bringing together highly specialised government relations businesses at a scale that’s never been seen. This acquisition marks a significant milestone ​during​​ ​​​MultiState​’s 40th year in business as well as for each of my talented partners and colleagues.  It also marks a milestone for our clients and the industry, as federal and state policy issues are evermore interdependent and require the professionalism and seamless integration that only PPHC and MultiState now offer.”

Seven Letter Adds Mike Ricci as Partner, Kobina Yankah as Creative Director of Seven Letter Labs

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WASHINGTON – Mike Ricci is the newest Partner to be added to Seven Letter. Ricci joins the public affairs firm after working as Communications Director for Maryland Governor Larry Hogan. Bringing more than a decade of prior experience as top spokesperson for Republican House Speakers Paul Ryan and John Boehner, and given the current political climate, Ricci is a welcome addition to Seven Letter’s team.

Seven Letter also added the new position of Creative Director of Seven Letter Labs. Kobina Yankah joins the firm to take on this new role after working throughout the midterms as Creative Director for the Democratic Congressional Campaign Committee. Yankah has previously created content for New Line Cinema, the MLB, and the NBA, for which he earned a National Emmy Award.

Visit Seven Letter’s blog for more details.

PPHC Mourns the Loss of Alpine Group Founding Principal Greg Means 

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We are sad to share the news that Mr. Greg Means, a founding principal of Alpine Group and beloved member of the PPHC family, passed away on Sunday, February 5th. Greg grew Alpine Group from its founding to become one of the top 20 government relations firms in DC, all while remaining a dedicated husband, father, and friend to many. Greg will be deeply missed by his friends and colleagues at Alpine Group and across PPHC. Our thoughts are with his family at this time.  

Read Alpine Group’s full tribute to Greg Means on their website.  

PPHC Firms Finish Strong with ’22 LDA Revenues of +$66 Million

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WASHINGTON – U.S. federal lobbying disclosures for the fourth quarter of 2022 have been released, along with yearly totals for 2022. Remaining strong in the Top Twenty Lobbying Disclosure Act Revenue Rankings once again are PPHC’s three federal lobbying firms: Forbes Tate Partners, Crossroads Strategies, and Alpine Group. Combining the three firms’ Lobbying Disclosure Act revenue comes to a grand total of $66 million, surpassing that of the number one spot on the list.

See the full list from POLITICO here.

Forbes Tate Partners Acquires Engage

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Bipartisan Public Affairs Firm Formalizes Partnership with Leading Digital Advocacy Specialists

WASHINGTON – Forbes Tate Partners (FTP), a bipartisan, full-service, government relations and public affairs firm, today announced its acquisition of Engage, a DC-based digital media agency. The acquisition will cement the two firms’ long-standing partnership and enable the newly expanded FTP to advance its clients’ goals in even more seamless and productive ways in the face of an ever-changing advocacy market.

“Forbes Tate Partners just celebrated a decade in business,” said Jeff Forbes, FTP Founding Partner.  “Today’s announcement marks the next step in our firm’s evolution as we continue to deliver a competitive edge for our clients. Having successfully partnered with Engage on many projects in the past, we are confident they are a perfect fit for our firm’s culture. We are delighted to formally welcome them to the Forbes Tate family and to add their considerable ability and expertise to our team.”

Added FTP Founding Partner, Dan Tate, “The formalization of our partnership allows FTP a unique opportunity to add top-notch talent, expand our footprint, and, ultimately, be that much more effective on behalf of our combined group of clients, spanning the nation’s largest industries, from health care, energy and financial services to emerging technologies, telecommunications, and manufacturing.”

“Digital public affairs is hardly new, but Forbes Tate’s commitment to investing in innovation clearly sets them apart,” said Engage Managing Partner, Nick Schaper. “Engage has established best-in-class capabilities that blend winning creative and technology with decades of experience at the highest levels of public policy to achieve effective, measurable results.”

Engage Managing Partner, Erik Rapprich said, “We look forward to formally joining forces with our colleagues at Forbes Tate to begin this new chapter in our shared history and unlock the value of the significant opportunity ahead.”

Engage, a full-service digital agency providing technology, design and creative, advocacy, and advertising services, was founded in 2007 and employs 19 professionals who have partnered with Fortune 500 companies, leading advocacy organizations, and the largest trade associations in the United States.

In December ‘21, FTP went public on the London Stock Exchange AIM as part of the Public Policy Holding Company (stock ticker PPHC.L). It was once again recognized as one of Bloomberg Government’s top performing lobbying firms for 2021. Most recently, FTP was named a PRNEWS Top Elite 100 agency for 2023, a prestigious honor recognizing the firm as one of the leading public relations practices in the country.

To learn more about FTP and Engage, visit FTP’s website.

Three Firms Show Strength in Q3; PPHC Remains the Leader

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WASHINGTON – U.S. federal lobbying disclosures for the third quarter of 2022 have been released, showing that PPHC firms continue to thrive. Forbes Tate Partners, Crossroads Strategies, and Alpine Group Partners have once again all cracked the top 20 rankings. The three firms’ revenue combined has PPHC leading the pack in the number one spot.

Read the full revenue rankings list from POLITICO here.