HH Global in record year

By Richard Stuart-Turner, Monday 22 July 2019

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HH Global has achieved a record financial year once again, with full-year revenue up by 22.2% and net revenue up by 25.3% year-on-year.

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MacMillan: "We don’t see any sign of the growth slowing"

In the international BPO firm’s unaudited financial results for the final three months and full fiscal year ended 31 March 2019, the business recorded revenue of £106.2m for Q4 and full-year revenue of £397.3m, up from £325.1m a year ago.

Its net revenue in Q4 was £24.3m, or 22.8% of Q4 revenue, while for the full-year it was £91.9m, up from £73.3m a year ago and representing 23.1% of full-year revenue.

The Leatherhead-headquartered company’s non-GAAP adjusted EBITDA in Q4 was £3.9m while for the full-year it was £19.1m, an increase of 42.7% from the £13.4m recorded the previous year.

HH global chief executive Robert MacMillan said the business has seen a compound annual growth rate of 34% since 2014. He attributed the latest record results to “the accelerated adoption of our core outsourced procurement services by large enterprises” and a high client retention rate.

Speaking to PrintWeek today, he added: “The positive for us is that we don’t see any sign of that growth slowing. In fact, with the new contracts that we’re winning we see the growth continuing to increase.

“We’ve put the foundations in place and there aren’t now many real global competitors out there for us. On these big opportunities we’re seeing more and more large corporates see the benefits of outsourcing and they want to engage.

“In Europe it’s a more mature model but we’re still seeing tremendous growth in Europe, particularly on point-of-sale.

“We’re bullish about the market but the reason that we’re getting that growth is that we’ve got excellent people and people that want to come and join us. And we’ll continue to focus on our clients – as long as we’re giving them a great service then our expectation for the business will continue to grow.”

He added that the company’s services have evolved to include “data analytics and content creation solutions” and that these will complement its core outsourced procurement offering to fuel its future growth.

HH Global recently completed the acquisition of Alecom, a print and luxury brand marketing services provider, and also took a majority stake in Blueberry Wave, expanding its offering to include data-driven customer experience services.

The business said its strong results continue to be underpinned by “significant current client expansion and new client wins” and that commitments for renewal or expansion of existing or new enterprise contracts in the last fiscal year amounted to approximately £160m of annual revenue at full run rate.

Significant wins included a new full scope marketing execution partnership with Walmart China and a new relationship with a major mobile telecommunications company in the US.

The company also continued the expansion of its Latin America operations, with the opening of a new office in Panama City and the upgrading of its Mexico City offices, as a result of its growing relationship with PepsiCo, and new relationships with a global spirits company and a global FMCG company.

“Latin America has been a very high growth market for us and continues to grow. It’s a market that is very keen on innovation and sustainability and we’re in every market that we need to be in in Latin America, and that also gives us a big advantage over the competition,” said MacMillan.

“What we’re seeing now is business that we’ve won in Latin America moving across to North America and other countries. It’s becoming a market where we’ve engaged with a big global client maybe just in Latin America who are now asking us to provide the same services for them in North America, and we’re talking to them in Europe and in Asia as well.

“If we sign a contract regionally then we have the opportunity to upsell those services globally as well.”

HH Global’s commitment to sustainability, meanwhile, culminated recently in the signing of the United Nations Global Compact (UNGC), the world’s largest corporate sustainability initiative.

In the past few months the business has been awarded a “multi-year contract” by Asda covering outsourced procurement services for all of the supermarket’s POS requirements and has also secured the contract to manage the Census Print and Post contract.

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