16 September 2023

PHMG reports another year of strong financial growth

Financial performance
PHMG, a leader in audio branding with over 25 years of dedicated expertise, today announces its results for the year ended 31 December 2022.

Strategic highlights:

Revenues grew 22% to £75.0 million, driven by new client wins and improved client retention.

Operating profit of £17.4 million and PBT of £14.5 million, reflecting investment in customer acquisition and operating leverage.

Very strong client retention levels with 91% of revenue from client subscriptions retained within the Group in 2022.

Grant Reed, Chief Executive Officer and Founder at PHMG, commented: 

“I am extremely proud of the progress we made in 2022, a year that once again demonstrated our resilience and capability for growth. Our employees’ dedication has been instrumental in achieving these results, and I extend my gratitude to them. The accreditations we continue to receive underscore our success in revenue, staff, and client growth, as well as the innovative nature of our services. 

 The comprehensive brand refresh we completed in 2022 has set the stage for significant growth, aligning our visual, verbal, and sonic identities with our mission to harness the power of audio for customer connection. With the opening of new offices in Phoenix, Arizona, and an expanded space in Leeds, England, we are well-positioned to capitalize on the opportunities ahead.” 

Audio Branding Industry – Significant Opportunities Identified

Audio branding uses sound to define, reinforce, and strengthen a company’s identity. Whenever a company uses music or spoken word as part of a customer experience, they are practicing audio branding. This can occur online, over the phone, in podcasts, at events, in stores, or through any other auditory channels.

Operating in this marketplace for 25 years, PHMG has established itself as the market leader in the UK, with strong market positions in other major geographies like the US. PHMG now has over 34,000 clients, with an average client relationship of over ten years. However, the opportunity to consolidate this market position remains significant. Analysis suggests there are an additional PHMG could work with in established geographies, with further potential for geographical expansion.

Strong Business Performance – Successful Execution

PHMG is pleased to report another positive year, both financially and operationally. Revenues increased by 22% to £75.0 million, driven by over 5,000 new client wins. This momentum strengthens PHMG’s market leadership in the audio branding market. The client portfolio has continued to perform well, with 91% of revenue from client subscriptions retained within the Group in 2022, up from 90% in the prior year. Customer satisfaction remains a priority, and clients typically choose to stay with PHMG for over ten years.

Profitability saw operating profit at £17.4 million, with a reduction in gross margin to 64% due to increased investment in client acquisition. However, the operating margin remains healthy at 23.3%.

Long-Term Growth Strategy – Clear, Detailed Plan Being Executed

PHMG’s vision is to consolidate its position as the world’s leading subscription-based audio branding platform. This will be driven by increasing market share in major economies like the UK and US, deepening client relationships, and extending the use of audio branding across a broad range of media.

Enhancing Our Client Proposition

PHMG is strengthening its client proposition to increase revenues and profits from current and new customers. Initiatives include broadening the usage of our products within our client base, expanding voiceover and production talent, creating a differentiated client experience through tailored account management, and developing innovative technology to drive client engagement.

Scaling Our Sales Capability

PHMG has operations in the US, UK, Australia, and Canada. The opening of new offices in Leeds, UK, Phoenix, Arizona, and Brisbane, Australia, demonstrates significant growth potential. PHMG will scale its sales capability through investments in management structure, remote/virtual sales teams, strategic sales platforms (Salesforce), and enhanced marketing capabilities.

Investing in Our People

The quality and commitment of PHMG’s people are crucial to the business’s success. PHMG is investing in talent acquisition across marketing, technology, and creative sectors to drive differentiated products and experiences. Additionally, the business is increasing development and support for existing employees through leadership development programmes and improved training programs through its sales academy.

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