Elixirr has announced its earnings for the 2022 financial year, in which it recorded a 40% expansion of revenue to hit £70.7 million. The consultancy is confident of building on this momentum, and forecasts that revenues could even pass £90 million in the next 12-month cycle.
Founded in 2009 by Stephen Newton, Graham Busby, Andy Curtis, Mark Goodyear and Ian Ferguson, Elixirr has long been recognised as one of the fastest growing consultancies in Europe. Even through the continued challenges of recent years, the firm has continued to find ways to expand its offering, and maintain its stellar results in the process.
In late 2022, the firm predicted that this would see it enjoy growth of 39% a – but its latest financial year now finalised, the firm has even upgraded that. In the end, Elixirr’s revenues increased by 40%, hitting £70.7 million in the process. The leap sees the firm easily surpass its previous record financial year, in 2021, when 67% growth saw Elixirr’s revenues break the £50 million mark.
Due to this impressive performance, Elixirr’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) rate also held strong at 29%. The firm’s pre-tax profit meanwhile grew to £15.7 million. This was up from £12.2 million in the previous year.
Commenting on the results, Founder & CEO, Stephen Newton said, “2022 proved Elixirr’s continued ability to scale and diversify, with another year of both strong revenue and profit growth for the group. This year also demonstrated the effectiveness of our four-pillar growth strategy, enabling us to deliver exceptional growth in all market conditions, while providing our clients with exceptional service that evolves with their changing demands. I’d like to thank our teams across the globe for their contribution to these results and their continued dedication in providing the excellent service that our firm has become renowned for.”
Sources of growth
Elixirr’s growth was supported by the acquisition of iOLAP in March 2022. The move was the firm’s largest acquisition to date, and furthered its growth in the world’s largest consulting market – the US. Thanks to this activity, Elixirr enjoyed a £15.1 million jump in revenues.
Looking ahead, Elixirr remains focused on inorganic growth with a strong pipeline and dedicated M&A team. However, the firm is committed to only completing high-quality transactions that fit the company’s growth strategy. The majority of its growth still comes from organic activity.
Throughout the 2022 financial year, Elixirr’s focus on growing existing relationships and bringing in new clients resulted in underlying organic growth of 18%. When it came to obtaining new clients, Elixirr secured a £10.5 million boost in revenues – but just as impressively, the firm managed to bring in an extra £10 million in new contracts from existing clients.
Overall, these results mean Elixirr expects to maintain its current rate of expansion over the current 2023 financial year. A release from the firm states that if anything, “momentum has accelerated” during the first quarter of 2023, with three record revenue months, and absolute revenue growth of 52% and underlying organic revenue growth of 19%. As a result, Elixirr presently anticipates record revenue between £85 million and £90 million for its 2023 results.