Tag: Investor news

PPHC to Acquire TrailRunner International

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Accretive acquisition expands strategic communications capabilities, extends reach into new geographies and introduces a global sports advisory service

Public Policy Holding Company, Inc. (AIM: PPHC), the leading government relations and public affairs group, is pleased to announce it has entered into a binding agreement on 24 January 2025 to acquire TrailRunner International LLC (“TrailRunner”), a Texas-based global communications advisory firm, for an initial consideration of $33 million (the “Acquisition”). On completion, the Acquisition is anticipated to be immediately accretive to the Group’s underlying earnings.

Acquisition Overview

PPHC has entered into a binding agreement on 24 January 2025 to acquire TrailRunner for an initial consideration of $33 million. On completion, the Acquisition is anticipated to be immediately accretive to the Group’s underlying earnings.

The Acquisition significantly expands PPHC’s capabilities in the large and growing strategic communications market, including corporate affairs, financial communications, crisis communications, litigation communications and reputation management. TrailRunner and PPHC are highly complementary with the combined Group presenting clear and immediate potential for cross-selling and integrated servicing for c.1,300 existing clients.

Founded in 2016 by Executive Chairman Jim Wilkinson, TrailRunner operates with a global team across offices in Dallas/Fort Worth, Texas (where the firm is headquartered), as well as New York, Nashville, and Northern California. The firm also serves global and regional clients from its locations in London, Shanghai, Abu Dhabi and Dubai, with approximately 80 employees supporting its operations worldwide.

Completion of the Acquisition is subject to certain conditions which management expects will be satisfied by 1 April 2025.

Strategic Rationale

The Acquisition is in line with PPHC’s longstanding objective to build, bring together and grow a portfolio of complementary businesses with specialist communications capabilities in order to help clients navigate the world’s most challenging crises, policy risks and opportunities. It also supports the Group’s stated M&A strategy by significantly expanding its strategic communications capabilities and broadening its geographic reach.

PPHC’s global clients require a service provider able to support them across all communications disciplines and in the various geographies where they operate. This acquisition establishes Group operations and a presence in key growth markets, including:

  • Dallas/Fort Worth, Texas, and Nashville, Tennessee – central cities with reach into the growing heartland of the US South, Midwest, and Southwest.
  • New York, where TrailRunner retains deep financial and corporate sector expertise.
  • Northern California, an innovation hub, further amplifying and broadening the expertise PPHC has already established in the state.
  • Across strategic locations in the UK, Middle East and Asia, deepening PPHC’s global footprint.

Upon completion, the addition of TrailRunner’s capabilities in corporate affairs, financial communications, crisis communications, litigation communications and reputation management represents a natural evolution of PPHC’s core service offerings of government relations and public affairs. In an environment where political issues instantly evolve into reputational crises—and vice versa—these expanded capabilities enable PPHC to deliver an integrated service suite that bridges policy advocacy with corporate reputation and strategic positioning.

Furthermore, the Acquisition includes TrailRunner Sports, a leading sports advisory practice established as a joint venture with Legends, the world’s preeminent premium live events company. TrailRunner Sports provides strategic business advisory and communications support to global sports clients spanning leagues, teams, educational institutions, investors, ownership groups and others. This addition broadens PPHC’s ability to offer tailored expertise in the dynamic sports sector and demonstrates its commitment to diversifying its offerings in high-growth markets.

This holistic approach enhances PPHC’s ability to serve its clients’ C-suites, providing a comprehensive advisory framework to navigate complex challenges across regulatory, media, and stakeholder landscapes.

This is PPHC’s fifth significant acquisition since its IPO in 2021 and second that expands its international reach. Upon completion, the Group will have invested substantial capital into M&A through a combination of cash and shares, demonstrating its ongoing commitment to executing its growth strategy. All completed acquisitions to date have been successfully integrated to become value contributing members of the Group.

Stewart Hall, CEO of PPHC, commented:

“The acquisition of TrailRunner simultaneously entrenches our market leading US position and establishes our business as a truly global strategic communications group. It advances our longstanding strategy of building the world’s most comprehensive provider of government relations and corporate communications services.

“By combining TrailRunner’s deep expertise in corporate and financial communications, crisis management and sport with our existing capabilities, we create immediate value for existing, as well as prospective, clients across all markets. TrailRunner’s strong presence in America’s key business centres, combined with its international reach into Europe, Asia and the Middle East delivers on our vision of serving clients with the most important policy and communications needs wherever they operate.”

Jim Wilkinson, Founder and Executive Chairman of TrailRunner, added:

“TrailRunner is a unique and exciting growth company with a track record of proven financial success, an aggressive growth strategy and a deep bench of talent to execute this growth plan. Given the growing global megatrend of the collision of critical factors including corporate reputation, government relations, finance, crisis, litigation and sports, I can think of no better partner than PPHC to help TrailRunner expand into significant future international growth.”

PPHC Acquires Leading London Firm Pagefield to Anchor UK & European Network 

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Industry-leading government relations and public affairs group adds first international presence with acquisition of UK consultancy  

Washington, DC and London, UK – PPHC, the government relations and public affairs holding company, has acquired Pagefield Communications Limited (“Pagefield”), a UK-based strategic communications firm headquartered in London, for an initial consideration of £16.2m, establishing a foothold outside the US for the first time.  

PPHC has been targeting acquisitions within the key political capitals of London and Brussels, as well as into further key US state capitals, to broaden its geographical presence. The Group’s healthy M&A pipeline is reflected by the pace of dealmaking, as the Pagefield deal follows the acquisition of Lucas Public Affairs (“LPA”) based in Sacramento, CA on 1 May 2024. Today’s announcement is PPHC’s fourth significant acquisition since IPO in December 2021 on the London Stock Exchange’s AIM, and Pagefield becomes the 10th complementary brand to sit under the Group’s growing umbrella. 

The addition of Pagefield marks a significant step towards PPHC’s stated goal of being the world’s premier provider of government relations and integrated communications services for corporate interests and NGOs, and further solidifies its position as an industry leader. Founded in 2010, Pagefield has earned widespread recognition for its excellence and impact in helping clients navigate the UK’s complex legislative and regulatory environment and is known for high-level reputation, issues management and strategic communications campaigns. Comprising an entirely cross-party team of 36 full-time employees, the firm has deep familiarity with the UK’s political, business and media landscapes.   

As with each of PPHC’s specialist firms, Pagefield will operate independently as a wholly owned subsidiary, maintaining its distinct brand identity and management team. The acquisition sets the stage for significant synergies between the Group’s network of more than 1,200 clients and 350+ policy and communications experts. Going forward, Pagefield will serve as a critical anchor for PPHC’s further expansion into Europe, the Middle East and Africa (EMEA).  

“The consequential nature of UK – and US – public policy at this very moment demonstrates why having leading strategists working in collaboration is so important to clients across the globe. This is a major milestone for PPHC and it is only possible because the shared strategic goals between Pagefield and PPHC were clear from the very start,” said Stewart Hall, PPHC CEO. “The addition of Pagefield’s experienced team will help us ensure our clients’ needs are met in an increasingly complex public policy and regulatory environment. The myriad of risks and opportunities faced by corporate and NGO leaders are no longer determined by borders or time zones. PPHC is uniquely positioned to advance our clients’ interests at a particularly determinative time in our political and cultural history.”    

“We seek partners, not just acquisitions. And after an extensive, multi-year search for a consultancy which is capable to serve our clients and help fuel our growth internationally, to find Pagefield at an inflection point themselves was true serendipity,” added Thomas Gensemer, PPHC Chief Strategy Officer, who also leads the Group’s international expansion. “Our goal is to be the premier provider of government relations and integrated communications around the world and we remain on the lookout for high quality consultancy partners in the UK, internationally and in additional states across the US. Our pipeline of acquisition opportunities under development remains extremely healthy as we solidify our positions.” 

Oliver Foster, CEO of Pagefield, commented: 

“We are delighted to be joining the PPHC family whilst maintaining the Pagefield brand, ethos and values. This next phase in our growth will open up a huge well of professional – and international – expertise to our clients. We already advise and represent a number of international clients in the UK, and PPHC works with a number of UK clients in the US. Therefore, the long-term client benefits were crystal clear from the moment we began our discussions and the opportunities for professional collaboration to add further value to current, new and shared clients is incredibly exciting.”  

Mark Gallagher, Co-Founder of Pagefield, added: 

“I am thrilled that we have found a terrific new home for Pagefield and our exceptional team – a prerequisite for the future of a company we founded some fourteen years ago. Today we are laying the foundation stone of what I have no doubt will be a transatlantic PR powerhouse. As founders of the business, Sara Price and I are also delighted to maintain our involvement in Pagefield and to have a stake in the future success of PPHC as a whole.” 

In addition to the 1 May acquisition of LPA, the Pagefield deal follows the 1 March 2023 acquisition of MultiState Associates, the Washington, DC firm which specialises in state-based government relations across the US and Canadian provinces and territories and the November 2023 launch of Concordant, a new corporate communications advisory, based in Chicago.   

PPHC’s other brands include Alpine Group Partners, Crossroads Strategies, Forbes Tate Partners, KP Public Affairs, O’Neill & Associates and Seven Letter. 

PPHC is listed on the Alternative Investment Market (“AIM”) of the London Stock Exchange (Ticker: PPHC) 

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.

PPHC Announces Interim Financial Results for the First Half of 2023

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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.

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.

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.”

PPHC announces interim financial results for the first half of 2022

Posted on by thomas

PPHC interim results for the six months ended 30 June 2022

Strong performance driven by organic revenue growth, high client retention, increased demand for new capabilities and expertise

Washington DC, US, 22 September 2022, Public Policy Holding Company (AIM: PPHC), a leading bi-partisan, full-service US government affairs business, today announces its interim results for the six months ended 30 June 2022, which show continued organic growth and strong trading momentum into the second half.

Financial highlights

*      Strong financial performance, driven by increased activity levels from new and existing clients, with organic revenue growth of 9.6% to $51.7m

*      Underlying EBITDA of $14.4m with underlying EBITDA margin of 27.9%

*      High client retention during the period as PPHC continues to see a high level of mandate from its blue-chip client base for its offerings of public affairs, crisis management, lobbying and issue advocacy, research, and media management services

*      Increased investment in notable new hires across the holding and operating companies following IPO, in line with management’s expectations

*      Strong cash generation with an increase in net cash of 35.2% to $17.9m

*      Interim dividend of $0.045 per Common Share, in line with the Group’s dividend policy stated at the time of IPO

HY22HY21Change
Group revenue$51.7m$47.2+9.6%
Underlying EBITDA1$14.4m$14.5m-0.6%
Underlying EBITDA margin27.9%30.8%-2.9ppts
Underlying profit before tax1$14.4m$14.4m-0.5%
Net Cash2$17.9m$13.2m+35.2%
Interim dividend per Common Share$0.045N/AN/A
1Underlying EBITDA and underlying profit before tax are stated prior to non-cash items of amortisation of customer intangibles, LTIP expense and ASC 718-10-S99-2 share-based accounting charge. For the prior period both measures are presented on a normalised, illustrative basis and calculated on the basis that 25% of pre-bonus EBITDA is paid as bonus in line with the Group’s policy post IPO. See the Financial Review below for further detail.

2Net cash excludes long term operating lease liability

Read the full results statement here.