Guernsey Press

PraxisIFM returning £40m. of £54m. to its shareholders

GUERNSEY-headquartered Praxis IFM Group is returning to shareholders £40m. of the proceeds of the £54m. sale of its fund services division.

Published
Praxis IFM CEO Robert Fearis.

The global financial services business said the return of capital would be subject to approval by shareholders at an extraordinary general meeting, the details of which would be communicated shortly.

The board also said that it intended to use the remaining proceeds from the sale of fund services to Sanne to further reduce the group’s borrowing, as well as reinvesting in the business.

It expects to resume payment of a regular dividend and it is expected the first dividend will be declared in the interim results for the six months to 30 June 2022.

PraxisIFM Group also reported interim results for the six months ending 31 October 2021, with revenue of £29.5m.

It said this was in line with the prior period and adjusted EBITDA – a key performance indicator – of £5.1m., compared with £5.9m. a year earlier.

The gross profit margin increased to 56.1%, compared with 54.4% in the previous six months.

In the period, the group reduced net debt to £6.2m. from £10.9m. in the previous six months – which PraxisIFM said represented a further strengthening of the business.

‘The last six months was a period still dominated by the Covid-19 pandemic and associated economic and supply chain disruption, so I am proud of staff across PraxisIFM for continuing to deliver excellent service to clients new and established. This commitment to client services has allowed us to broadly maintain our revenue and grow our gross profit margin despite macro-economic pressures,’ said chief executive officer Robert Fearis.

‘As we reduce net debt and invest in our people and technology, PraxisIFM is well-positioned to drive towards our revenue and gross margin growth targets by delivering flagship private wealth and corporate services with renewed focus.’

As the group looks to 2022, PraxisIFM’s 50th anniversary year, the business said investment in technology and people would support targets for organic revenue growth of 5% per annum and reaching a gross profit margin of 65%.