Endava’s endeavours boost headline growth

London-HQ’d, privately-held 'nearshore' IT services firm, Endava, has had another cracking year, with headline growth for the 12 months ended 30th June 2011 up 27% to £29.2m, all organic. This was over twice the growth rate the prior year (see Endava gains share looking east). However, gross margins were squeezed again, down 4 points to 28%, but this time there was not enough ‘offset’ from back office efficiencies, leaving operating margins 70bps lower at 4.9%. Endava is still carrying a truckload of carry-forward tax losses, of which £433k were applied in the year (£2.54m left). This helped lift net profit by 10% to £1.4m. I’ll be catching up with founding CEO John Cotterell again soon for more ‘colour and movement’ on the Eastern European nearshore IT service scene.