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Elixirr International PLC on Monday edged full-year sales guidance higher after securing another US deal. The London-based business consultancy said US subsidiary Elixirr Inc is buying Hypothesis Group LLC for up to $45.0 million. Los Angeles-based Hypothesis is a insights and strategy firm founded in 2000. In the financial year that ended in August, Hypothesis recorded normalised earnings before interest, tax, depreciation and amortisation of $5.1 million and normalised pretax profit of $5.0 million on revenue of $28.1 million. Elixirr said the deal, its sixth since its initial public offering in July 2020, and its fourth in the US, is immediately earnings-enhancing. Hypothesis’s strong US presence will add immediate scale as well as help accelerate growth in the region, Elixirr said in a statement. Elixirr updated guidance for 2024 to reflect current expectations and around two months impact of the new acquisition. The board expects 2024 revenue in the range of £108 million to £111 million. In September, the company said it expected full-year revenue of between £104 million and £110 million. Previous adjusted Ebitda margin guidance of 27% to 29% is maintained, inclusive of the dilutive effect of Hypothesis’s lower Ebitda margin at acquisition, the firm added. In 2023, Elixirr reported revenue of £85.9 million and an adjusted Ebitda margin of 30%. Shares in Elixirr were up 3.3% to 717.90 pence each in London on Monday morning. Copyright 2024 Alliance News Ltd. All Rights reserved.
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