(Sharecast News) - Challenger consultancy Elixirr International reported strong first-half growth in its interim results and announced the acquisition of US-based AI specialist Responsum on Monday.
The AIM-traded firm reported revenue growth of 23% in the six months ended 30 June, to £41.1m.
It said it hit record revenues in half of the six months, while its underlying organic revenue saw an increase of 14% compared to the first half of 2022.
Adjusted EBITDA rose 19% to £12.3m, which the board put down to the company's robust profitability trend, with an adjusted EBITDA margin of 30%.
Profits before tax were up 17% to £9.9m, compared to £8.4m a year earlier.
Elixirr recorded 23% growth in adjusted diluted earnings per share year-on-year and boasted a net cash position of £19.5m, with zero debt.
"We began this year with great momentum and have continued our progress through the period, leveraging our previous acquisitions to maximise the firm's overall performance," said chief executive officer Stephen Newton.
"Our ambition is to become the best digital, data, AI and strategy consultancy in the world, and the diversification we have built into Elixirr over time has proved effective in helping us achieve this."
Newton said the company continued exploring organic and inorganic opportunities to support that ambition through new capabilities, industries and geographies.
"Our ability to deliver such a relevant range of services, coupled with a growing reputation in the market, has contributed to another set of strong results for the first half of 2023, and we expect to see this performance continue for the remainder of the year."
In a separate announcement on Monday, Elixirr also revealed its acquisition of Responsum - a US-based firm known for its proprietary artificial intelligence (AI) software.
The company said Responsum had developed unique AI software and was Elixirr's second acquisition in the US.
It also marked the group's fourth acquisition since its initial public offering in July 2020 and its fifth overall.
The purchase aligned with Elixirr's strategic move to enhance its presence in the pivotal US market.
It said it would bring specialised services in emerging technology, particularly in large language models (LLM) and generative AI.
Those additions, the board said, would synergise well with the group's current service palette, significantly bolstering iOLAP's data and analytic capabilities.
Given that the global AI market was predicted to surge from $208bn in 2023 to an impressive $1.8trn by 2030, the acquisition would put Elixirr in a position to harness escalating client demand.
The firm said clients increasingly sought guidance on AI implementation and its advantages.
Elixirr said it had already partnered with Responsum for multiple client projects before the takeover, with an official collaboration announced on 3 August this year.
Since the partnership, they have identified more than 40 potential client opportunities, substantiating the acquisition's promise.
"Bringing Responsum on board will allow us to engage with our clients in a way that is very differentiated in the market - combining strategy and execution under one roof, empowered by the tech of tomorrow," Stephen Newton added.
"This acquisition enables us to be anchored in a core capability but provide the wider strategic services needed to make a real difference for our clients' organisations.
"This is just one of many acquisitions we intend to make in areas that add real value to the change journeys and value creation opportunities our clients have."
At 0946 BST, shares in Elixirr International were up 6.55% at 610p.
Reporting by Josh White for Sharecast.com.
Elixirr International (ELIX)