Welcome to the FD Technologies full year results presentation for FY22. In a moment, we'll hear from Group CEO Seamus Keating on the operational and strategic progress we've made during the last financial year, following which CFO Ryan Preston will take you through the drivers of our financial performance. Let me draw your attention to the Safe Harbor statement on slide two of the presentation. With that, I'll hand you over to Group CEO Seamus Keating. Thank you, Ian, and good morning. Ryan and I are delighted to be here today to give you an update on the strategic plan that we laid out one year ago. We've delivered on the accelerated growth strategy during the year and achieved the targets that we set out. We've achieved those targets both in financial terms, but also on the strategic initiatives that we laid out. Those strategic initiatives, particularly the ones around our product development, our go-to market, and our partnership. The market opportunity that we laid out a year ago across each of the businesses where we were in big markets with attractive growth rates, that market opportunity remains robust and if anything, more exciting than it was a year ago. I think the standout achievement for us in the year is a number that's not in our reported financials for last year, but our guidance for recurring revenue in KX for the year coming up. That guidance of recurring revenue growth of 35%-40% is, for me, a really, really significant achievement as we head into our new financial year. Let's look at the performance across each of the business units. That guidance for this year is enabled because of the delivery of some really important strategic milestones last year. We delivered the 25% growth in exit recurring revenue. We signed 22 deals around our KX Insights platform, significantly bringing some of our existing customers onto that platform and signing up new customers in new markets. Also the strategic partnership that we announced with Microsoft helps us to achieve that accelerated growth rate as we come into this year. Our other two business units, First Derivative and MRP, did exactly as we said they would do at the beginning of the year. Both delivering strong growth and achieving improved margins as we've come through FY 2022. Bringing all that together, we've achieved our financial guidance for the year. Like importantly, we've also eliminated the net debt in the business. That really demonstrates the cash flow generation capability of the FD Technologies group. Let's look then at each of the business units in turn, starting with KX. I pointed out earlier that the market opportunity remains robust and the world of real-time analytics continues to grow rapidly, and it's growing rapidly for a number of reasons. Firstly, the data volumes across all sectors are exploding. Secondly, those data volumes and those massive datasets that are being created are increasingly being used in artificial intelligence and machine learning to do ever more sophisticated analytics and to inform insights and real-time decisions. That means that for many of our customers and prospective customers, using real-time has become a competitive necessity rather than simply a competitive advantage. As they've looked to do that, they've seen time and time again that the legacy technologies dependent on silos, on data warehouses, on data lakes, you know, simply don't work in this world of real time and increasing volumes. In these market conditions, we believe that we are ideally placed to prosper. Some of our absolute competitive strengths are that in one platform, we process, store, and analyze the data. We're also able to bring the real time and the historical data together to provide the context into those real-time decisions, making better decisions. We're now deployable, whether it's on the edge, on premise or in the cloud as a service. What we see from many of our customer conversations is that demand for Everything as a Service, every Application as a Service is big and is growing quickly. The work that we've done on the product to give it that cloud native capability and also to make it easy to adopt and easy to use, that ease of use has been hugely around the work we've done to have support for Python and support for SQL. It simply increases the population of developers massively from tens of thousands to many millions across our client base. These are some of the things that make us especially suitable for this world of real-time analytics. One of the industry analysts, Forrester, has conducted a study with four of our existing clients, and that study has shown that the three-year return on investment is over 300% and that the payback on the implementation is less than six months. We're working with an increasing ecosystem of partners, and we'll talk a little bit more later on about a number of those, including the Microsoft partnership. We're working with that ecosystem to demonstrate these benefits to customers and to increase our scale. Let's look at some of the operational achievements during the year. I'm gonna call out a few of what I think are the most important areas here. Let's start with the net revenue retention. A very significant increase from 99% last year to 106% this year. The things that have driven that increase in net retention are our work with our existing customers for them to get the value in our new product and w e've started to see that come into our revenue as we've come through the latter part of the year. I believe that there's significant opportunity to further increase that as we go through this year. The second key area in increasing that net revenue retention has been our ability to expand within existing customers. Some of those customers we started with at the very beginning of the year. As they see value from the product that we've rolled out and start to get the benefits, they've immediately been keen to expand. Those are two of the big reasons why that net revenue retention rate has started to increase as we expected that it would from the beginning of the year. Encouragingly, we see that increasing further as we go through this year to at least 110%, t hat's getting us well on the way to our 120% target. Second thing I'd like to pull out here as a significant milestone last year is the number of new logos, 26 new clients in the year. That's 26 pretty much equally split between capital markets and the other industries. It demonstrates that there is still, you know, significant expansion capability in the capital markets world for KX, particularly as it becomes easier to use and easier to adopt. The other highlight that I would pick out of here is the very significant progress that we've made in the world of industry in expanding outside of capital markets. Our new revenue outside of capital markets was 40% of our total, whereas in the previous year, it was just under 20%. That's a very significant improvement. As we go through this year and we see that at least 1/3 of our new business is coming from outside of the world of capital markets. I mentioned partnerships, so let's talk about the very significant partnership agreement that we signed with Microsoft at the beginning of this year. Why were we an important partner for Microsoft? I think firstly, they, like we, recognize the scale of the opportunity in the real-time analytics world. They see the power and the potential of KX and its unique selling points in this space. Thirdly, they recognize our leadership position in capital markets and the number of clients that we have in that space and how deeply embedded KX is in many of the front and mid-office processes across the capital markets world. Why was it important for us? It's important for us in KX because it gives us the opportunity to scale faster than we could do otherwise, and particularly to scale outside of capital markets, being deeply embedded in the Microsoft Azure platform, being sold by the Microsoft Sales force, where they're able to retire quota for selling KX in the same way that they would retire quota selling an existing Azure product. That's a very powerful combination. I think what's also important to note is that on the work that we're doing to develop applications in capital markets, we're already starting to see some revenue in both the development and the early access phase of that work with our partner Microsoft. Let's look at some examples of how we're delivering value for customers as we've come through the year. I'm not gonna go through every example, but in the world of industry, I'd like to pick this manufacturing example, which is a medical devices manufacturer. I've spent time myself with the team in this customer organization over the last couple of weeks, spent time with them talking about how we expand within their organization and get out into many more of the factories that they have across the world. So what have we done here? We've worked with them to bring all of the datasets together from the different parts of the production process. The datasets from the different devices, machines, the datasets from their operator data, and to bring that together in context and to look at where the weaknesses are, what's causing reduced productivity, what's causing some of the failure rates, and to be able to look at that effectively in real time and make changes. Doing that has brought this customer a saving of more than $1 million per annum, and that is simply on, you know, one significant production line for them. What it's really brought home to me, working closely with this customer, is the opportunity within these customer organizations and the challenges that they face in bringing the data from those different data silos together and getting meaningful insights so that they can act and get value on it. We're really excited about the opportunity to do many more of these across the manufacturing sector, and see significant opportunity as we go through FY 2023 to roll this out to many more customers. That was a good example of a live project in the world of industry. Let's look at one also in the world of capital markets. Crypto's become very big, and crypto's become very fashionable in the last couple of years. Actually, it's become increasingly important to the largest financial institutions because there's a new asset class, it's an asset class that they need to work with. Our opportunity in crypto is to support the crypto organizations in the same way that we work with the Tier 1 banks. That is providing the real-time analytic capability, the capability to ingest, to write down massive volumes of data. As we work with customers in this space, what we're seeing is that it is actually the single biggest data problem on Wall Street today is coping with the volumes on crypto. A number of our new customers in capital markets during the year were in the crypto space, and we see a significant opportunity to grow there as we go through this financial year. Looking at our targets for the year that we're in, and these are very much the financial targets. I've spoken already about the net revenue retention, you know, going up to 110%. Based on what we see, we are very confident that we'll be able to achieve this. As we said earlier, the standout achievement of last year was getting us to a place this year where we could grow the recurring revenue by 35%-40%. In any language, that's getting into high-growth software territory. Excitingly, we believe that that growth rate is going to be at least maintainable as we look from this year out into next year. I think a very, very achievable set of targets here and setting us up, you know, as a high-growth software business in a market that's growing and a market that's very, very big. Let's move on to talk about the First Derivative business, and a hugely successful year for David and the team in First Derivative. A growth rate that we've not seen, I think, for most of ten years in this business, coupled with an improvement in the gross margin. Very, very important progress and really delivering on the strategic initiatives that we set out in the business that's enabling that growth. Those initiatives really are on us selling more outcomes rather than selling resources onto individual projects in the bank. That means getting more value for the domain skills that we've got. To do that, the key strategic change was to hire people with more and more of the high-level domain and the experience in consulting and selling at the very highest level in our capital markets customers and t hat's meant that we've been able to do bigger packages of work, take more responsibility. It's also meant that we've been able to sell more work where, in addition to our domain capability, we're also bringing the technology component, the ability to transition work to the cloud, to implement systems, do some software development. The combination of our domain skills plus that increasingly strong technical capability has allowed us to generate this level of growth as we've come through last year. Let's have a look at what we think are some of the market dynamics in this space. This is a big market, and it's a market that we think is growing at most of 10% per annum. The dynamics here are that the world of regulatory change, you know, continues to be a significant area of work for our customers, therefore creates significant demand for us. Backed up by the demand for digital transformation. Digital transformation, I think, is everywhere. What it really means for us in the world of capital markets is creating greater efficiency, creating automation, reducing manual intervention, something that we do as bread and butter for our customers and have done for so long. The third significant dynamic in this space is the reduction in work being done in some of the major metro centers. Historically, banks wanted a lot of the consultants on-site, whether that was in London or in New York. The last several years of the pandemic, I think, have shown that all of that work is not needed to be in those expensive metro centers. That certainly plays to our strengths and our ability to do work from nearshore centers where we have significant scale and we have those domain and those technical skills to deliver that. The things that our customers call out about us are that we have that domain knowledge and that our people are very good when they go into the organization and t hey work well with the customer's teams. They're knowledgeable, they're smart, they get difficult stuff done. We're doing that today through the three practice areas of business services, engineering services, and technology services. That's enabling us to give really strong career paths to people in each of those practice areas. It's also helping us to deal with what's been a pretty challenging period on attrition and on pay rises. We're able to recover those pay rises in the work we do with customers. We're giving our people a sense of they know which practice they're working in, they see their career path, and they see the opportunity. It's certainly helping us in this very competitive world for skills. In the strong market environment, we continue to see robust growth in First Derivative. We set out in our targets a year ago that the business should grow certainly double digits each year. We see this year being circa 15%, but it's 15% with continuous improvement in the margins in the business, and we think that's a good trade-off as we look through this year. Turning to MRP, it's been a year of strong performance, a year of very strong growth, and a year of improvement in gross margin as we set out earlier in the year. The standout strategic achievement during the year has been the delivery and launch of our Prelytix 3 platform. Importantly, that's got self-service capability, which dramatically increases our ability to scale this business from here. Let's look a little bit at some of the opportunity that we see. The dynamics here, again, are an increasing demand for that predictive lead generation, the demand from customers to get more value from the money that they're spending on their sales and marketing, to get greater insight into where the best place to spend that money is. We've got some particular strengths around that. The platform powered by KX, it gives that insight. Also the platform, again, powered by KX, is able to bring the multi-channel approach to targeting those leads, whether that channel is on the display advertising, on content syndication, or on the sales development piece. It's the combination of those that creates that account-based marketing service that many large organizations increasingly see as the most effective way to deliver on their marketing investment. Let's look at the objectives for the year. It's for continued strong growth of at least 10%, and we believe the ability, particularly with the rollout of that version 3 of the product, gives us the ability to continue improving margins in the business. A very strong performance again expected as we go through this financial year. Bringing it all together now, the strategy we laid out last year for the business is working. For this year, we'll continue to make the investments to accelerate that growth and to improve the margins. I'm confident that next year we'll be back with an even higher growth rate for the KX business. Now let's hear from Ryan, who's gonna take us through the detail of the financial statements that we posted today. Thank you, Seamus, and good morning. I will now take you through our financial performance in full year 2022. We were really pleased with our performance in full year 2022, with revenue growing by 11% and 14% at constant currency. Our adjusted EBITDA of GBP 31 million was in line with guidance and includes our investments to help deliver future growth. We also returned to a net cash position through good working capital discipline and the sale of one of our associates, Rx Data Services. We will now look at our business unit performance, starting with KX. Full year 2022 was a year of transition for the KX business as we transitioned from perpetual licenses and focused on recurring revenues. The table to the right shows we have particular success in industry. In addition, we exited the year with annual recurring revenues of 25%. Our service revenues were down year-over-year as we focused on shorter implementations and improving time to value for our customers. During the year of transition, we maintained software product margins at 90%. We also invested in our customer success team and, as a result, service margin declined. We also made our planned investments in R&D, sales and marketing, and admin expenses, and we are set up for future accelerated growth. Now let's look at the performance of First Derivative. We are particularly pleased with the performance in First Derivative, where revenue grew by 24%. We have a strong pipeline in this business, and we are investing in sales capability to make sure we realize the opportunities in this pipeline. Gross margin improved to 27% as a result of our changed engagement operating model, as Seamus mentioned earlier. MRP had a strong year with revenue growing 16% off the back of a challenging full year 2021 and the impact of COVID. Margin continues to improve in this business as we benefit from higher utilization rates and lower costs to serve our customers. As Seamus mentioned, we are transitioning customers to our new platform, Prelytix 3.0, and this will help deliver revenue growth in full year 2023. This time a year ago, we set out our accelerated growth strategy, and we're really pleased to show in this table that we've achieved all our targets. With revenue growing, investments made as planned, and adjusted EBITDA in line with guidance. We are well- positioned for future growth. We will now turn to cash flow. We ended the year in a net cash position, driven by strong operating cash conversion of 93% and the sale of one of our associates. The strong operating cash was driven by good working capital disciplines. In summary, the financial performance shows we've delivered on the strategy we set out at the start of the year, and we are well placed to deliver on the guidance that Seamus shared earlier.
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