Full Year 2024 Evoke PLC Earnings Call Transcript
Key Points
- Evoke PLC (EIHDF) reported a 3% revenue growth for the full year, with an 8% growth in the second half, aligning with their midterm target of 5% to 9%.
- The company achieved an adjusted EBITDA growth of 4% to GBP312 million, surpassing previous expectations.
- Evoke PLC successfully returned to growth for the first time in three years, driven by strong performance in their core markets.
- The acquisition of Winner expanded their market presence in Romania, contributing to a 12% year-over-year growth in online coal markets.
- The company has implemented a GBP30 million cost optimization program, with further savings expected in 2025, enhancing profitability and operational efficiency.
- Evoke PLC's leverage remains high, with net debt increasing by GBP30 million to GBP1.79 billion, and the leverage target of below 3.5 times being postponed to 2027.
- The company faced a cash burn of around GBP65 million in 2024, primarily due to exceptional costs related to business transformation.
- Despite improvements, the retail segment experienced a 33% decline in EBITDA due to a high proportion of fixed costs.
- The company anticipates being slightly below their 5% to 9% revenue growth guidance in Q1 2025 due to various short-term impacts.
- Evoke PLC's stock price has decreased by approximately 30% since the CEO's tenure began, raising concerns about shareholder value and the timeline for dividend returns.
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Good morning, everyone, and thanks for joining us today for our 2024 results. I am Per Widerstrom, and I'm joined today by Sean Wilkins, our CFO. I've been CEO of Evoke for nearly 18 months now and in today's presentation and delight to report on the strong progress we are making with our business transformation and turnaround.
We start with the agenda on slide 2, and while we already gave with the key headlines on 2024 performance and our full-year trading update in January, I'm pleased to say that our adjusted EBITDA was actually GBP2 million ahead of the top end of our previous update.
And in line with the report, we met or exceeded our commitments from the interim results, and Sean will talk through the details of this as well as covering our current trading and outlook for the year ahead. I will then cover our strategic progress and how we are executing against the value creation plan before taking your questions.
Turning to slide 3 with a reminder of our commitment to shareholders to create the value
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