March 12, 2025 • Insight
PPHC announces unaudited preliminary results for full year 2024
Strong performance in line with expectations and strategic progress with international expansion
Public Policy Holding Company, Inc., the leading government relations and public affairs group, today announces its unaudited preliminary results for the year ended 31 December 2024 (“FY2024” or the “Period”).
Financial Highlights
- Revenue increased 11% to $149.6m (FY2023: $135.0m), with organic growth contributing 3% and the balance driven by accretive acquisitions completed in the Period and in 2023.
- Underlying EBITDA of $36.1m, up 3% year-on-year, was achieved at a 24.2% margin. This margin performance was achieved after the Group expended $3.1m in M&A related costs and start-up investment in Concordant over the level it incurred in 2023. Adjusted for these incremental costs, the margin would have been 26.2%. Underlying Net Income of $27.7m was up 5% (FY2023: $26.5m) with an increase in finance costs offset by a more favourable effective tax rate.
- EPS of $0.2345 was flat relative to the prior year, with increased earnings being offset by a 5% increase in the number of shares in issue.
- The Group’s balance sheet remains robust, underpinned by strong free cash flow of $22.2m, up 4% year-on-year (FY2023: $21.4m), enabling strategic progress via organic investment and earnings-enhancing M&A.
- Net Debt at period-end of $17.5m (FY2023: net cash $3.4m) reflects a prudent leverage ratio and the deployment of $25m of new debt into two earnings-accretive acquisitions in FY2024.
- The Board retains strong confidence in the Group’s outlook and has declared a final dividend of $0.0470 per Common Outstanding Share, bringing the total dividend for FY2024 to $0.0940. This is in line with the updated dividend policy announced in January 2025, which enables the retention of more capital and for the Group to act decisively on accretive M&A opportunities, thus driving long-term shareholder returns and value creation.
| FY2024 | FY2023 | Change | Change Adj (*) | |
| Group Revenue | $149.6m | $135.0m | +11% | +11% |
| Underlying EBITDA | $36.1m | $35.1m | +3% | +12% |
| Underlying EBITDA margin | 24.2% | 26.0% | -1.8pts | 0.2pts |
| Underlying Net Income | $27.7m | $26.5m | +5% | +14% |
| Underlying EPS basic | 23.45c | 23.54c | 0% | +8% |
| Underlying EPS fully diluted | 22.22c | 22.71c | -2% | +6% |
| Dividend per share | 9.40c | 14.30c | -34% | -34% |
| Free Cash Flow | $22.2m | $21.4m | +4% | +15% |
| Net Debt / (Cash) at period-end | $(17.5)m | $3.4m | $(20.9)m | $(20.9)m |
(*) For presentation purposes only, the Group also presents “Adjusted Change”, adjusting for an exceptional increase in M&A costs and Concordant Start-up costs of $3.1m in 2024 (going from $0.5m in FY2023 to $3.6m in FY2024)
Operational Highlights
- The Period showcased the Group’s ability to successfully execute its stated growth strategy, with ten operating companies providing an enhanced and complementary range of services to a now global client base:
- Organic growth of 3% was achieved in a year that saw major elections, and therefore political disruption, across many of the world’s largest economies including the US and UK.
- This was supplemented by the continued execution of the Group’s inorganic growth strategy, with the acquisitions of California-based Lucas Public Affairs (“LPA”) and London-based Pagefield Communications (“Pagefield”) completed in the Period.
- LPA broadens the Group’s presence in a state that is characterised by high regulation and would register as the world’s fifth largest economy; and Pagefield established an operational presence outside of the US for the first time.
- The integration of LPA has completed and the integration of Pagefield is being delivered as expected, with both companies benefitting from client referrals via the wider PPHC network.
- Revenue diversification further enhanced with the top 10 Group clients representing 8.7% of revenue in FY2024 versus 10.8% in FY2023 (**), and increasing international revenue contribution.
- By segment:
- The Group’s largest division, Government Relations, grew strongly at 7% (4% organically). The Group ended FY2024 again as the top federal lobbying business in the US as defined by the Lobbying Disclosure Act. PPHC has maintained this position for five consecutive years.
- Public Affairs increased by 13% (-5% organically), with the negative organic growth a consequence of pending elections impacting client project spend in H1. In H2, organic growth in the division returned at +4%.
- The Group’s newest division, Diversified Services (Research and Compliance), grew strongly at 47% (23% organically), albeit from a lower base.
- The revenue share of each division as a proportion of the Group’s total remained broadly similar to last year, with Government Relations at 69% (FY2023: 71%), Public Affairs at 24% (FY2023: 24%), and Diversified Services at 7% (FY2023: 5%).
- A broader client base of c.1,200 Group clients is supported by sustained high retention rates, with the Group directly representing almost half of the Fortune 100 and more than a quarter of the Fortune 500, in addition to many more via trade associations. The number of clients spending more than $100,000 increased by 15% to 503 (**) and the number of clients spending more than $250,000 increased by 16% to 137.
- The quality of PPHC’s operating companies continues to be reflected in the 2024 Lobbying Disclosure Act rankings, with Group agencies, when aggregated, topping the rankings as the US market leader in both Q3 and Q4 2024, as well as for the previous 16 consecutive quarters.
(**) Historic client data has been re-stated based on client-consolidation analysis.
Current Trading and Outlook
- The Group has strong trading momentum in FY2025, with organic growth rates year-to-date well ahead of FY2024. The strong strategic execution and robust results achieved during FY2024 give the Board confidence in FY2025.
- Following the US elections, management has observed significant new business activity in the United States.
- Strategic execution continues in 2025, and the Group announced the earnings-accretive acquisition of Texas-based TrailRunner International LLC (“TrailRunner”) for initial consideration of $33m in January 2025, with closing foreseen for April 1, 2025. TrailRunner operates with a global team across offices in Texas, New York, Nashville, and Northern California, London, Shanghai, Abu Dhabi, and Dubai.
- The focus continues to be on driving client retention rates, new business generation following the outcomes of elections in the US and UK, 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 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 government relations and strategic communications sectors. The Group is actively seeking to expand its portfolio of operating companies internationally with strategically and financially attractive opportunities while adding complementary specialisations.
- The Board remains confident in the ongoing prospects for the Group, as reflected in its stated ambition to achieve $500 million in profitable revenues in the medium term, and reiterates its medium-term guidance to achieve:
- organic revenue growth between 5% and 10%;
- incremental growth from future M&A; and
- underlying EBITDA margin between 25% and 30%.
Stewart Hall, CEO of PPHC, commented:
“2024 demonstrated the resilience and adaptability of PPHC. Public Affairs navigated a challenging environment with clients adopting a traditionally more cautious approach to project spending in a US presidential election year. However, we saw a decisive turnaround in the second half as clients prepared for 2025. Government Relations continued to perform strongly and the high quality of our operations in this sphere is renowned, while Diversified Services showed exceptional growth, highlighting the value of our balanced portfolio approach.
“The M&A we achieved in FY2024 reflects significant milestones in our growth strategy, expanding our geographic reach and service capabilities. With M&A continuing in FY2025, via TrailRunner International, we have a sun-to-sunset presence with global operations. The addition of TrailRunner significantly enhances our global communications capabilities and client offerings across key markets in the US and Asia.
“We remain extremely well positioned to capitalise on increased policy activity following the US election cycle and growing demand for our services internationally. The strong finish to FY2024, coupled with robust new business activity and M&A, gives us confidence in delivering accelerated growth in the year ahead as we progress towards our ambition to reach $500 million revenue in the medium-term”.