Elixirr grows revenue by 3% despite Covid-19 challenges

In its first financial release since the management consultancy went public, Elixirr has revealed that revenue and profitability has grown in the past half year, despite the Covid-19 outbreak.

Founded in 2009, Elixirr has worked with over 150 clients in 25 countries across Europe, North America, Africa, Asia and Australia. The company has rapidly diversified its client base by industry and geography, with a focus on forging long-term relationships with clients. Despite it’s early status as a fast-growing start-up, however, predictions that the consulting sector was due a major contraction amid the Covid-19 pandemic meant Elixirr prepared for the worst early in 2020.

According to co-founder and CEO Stephen Newton, Elixirr expected a drop in its revenue and budgets of 25%. In response, the firm not only looked at revenue, but also focused on its costs; limiting spending to things which would “make a key difference to clients.”

During the first six months of 2020, revenue at Elixirr rose to £13.55 million – up 3% on the second half of 2019, and 18% on the first half of 2019.

Coupled with the consultancy’s selective spending, profit before tax accelerated from £1.73 million at the end of 2019 to £2.62 million for 2020’s first half – an increase of 51%. Compared to the H2 of 2019, the EBITDA increased by 23%.

Speaking at the release of the firm’s interim results for the first half of 2020, Newton said, “These results are testament to our incredible clients – the belief they have in us, and the continued hard work and dedication of the team. The challenging climate that all firms are facing today makes the work we do all the more crucial, and we have been proud to help our clients adapt and thrive when most necessary.”

The results are the first Elixirr has published since Elixirr sought to bolster its growth track by going public on the London Stock Exchange. The AIM listing was hoped to secure the capital necessary to accelerate the firm’s expansion strategy, while seeing all of the firm's 140 consultants and staff become shareholders in the company – and on the basis of the latest release, Elixirr will be a very attractive asset for investors in the current market.

Looking ahead, Newton stated that Elixirr will focus on what has made the firm a success to date; “Focusing on the big issues our clients face.” At the same time, the consultancy is looking to double down on its entrepreneurial culture to deliver organic growth, something which Newton elaborated “comes from getting more from existing Partners, promoting Partners through the business, and hiring from the market to bring in new capabilities and skills.”