London Stock Exchange welcomes Public Policy Holding Company to AIM

London Stock Exchange today welcomes Public Policy Holding Company (PPHC), a leading bi-partisan, full-service US government affairs business headquartered in Washington, DC, USA, to AIM under the symbol ‘PPHC’.

PPHC operates a portfolio of independent firms offering public affairs, crisis management, lobbying and advocacy services on behalf of corporate, trade association and non-profit client organisations. Clients engage the Group to enhance and defend their reputations, advance policy goals, manage regulatory risk, or otherwise engage with US federal and state-level policy makers, stakeholders, media, and directly to the public at large.

Since its inception in 2014, the Group acquired and integrated eight businesses, now operating as five separate, independent companies, focused at the federal government level in the US and with expanding reach into key US states and metropolitan areas. The five operating entities which form the operating subsidiaries of the Group are Crossroads Strategies LLC, Forbes Tate Partners LLC, Seven Letter, O’Neill & Associates and Alpine Group Partners LLC..

PPHC is being admitted to trading on AIM following its Placing and Initial Public Offering which raised £30.7m from the placing of New and Existing Common Shares. The shares were admitted at 135p, resulting in a market capitalisation of approximately £146m. The proceeds will be used to fund accelerated growth and talent acquisition and repay the outstanding balance on its revolving line of credit.

Quick facts

Track
Market: AIM
Instrument market cap (£m)
159.59
Listing/Admission to trading
16 Dec 2021

The Directors believe that Admission to AIM will:

  • Assist in the growth of the business and its acquisition strategy through providing access to equity capital; and
  • Enhance the Group’s profile and provide it with the ability to incentivise and retain its existing and future employees through equity incentives.

Highlights

Comprehensive suite of services across all key sectors:

  • Catering to a diverse client base at all levels of the US government, PPHC’s integrated solutions, anchored in federal lobbying, expand the opportunities for public affairs advisory, research, and digital campaigns

Diversified revenue sources from blue-chip client base:

  • Active, growing client base of over 700 corporates as at 31 December 2020, trade associations and non-governmental organisations in all major sectors of the US economy, including: healthcare and pharmaceuticals, financial services, energy, technology, telecom and transportation sectors.

Bipartisanship; strong positioning in a growing and target-rich market:

  • Deep, bi-partisan networks and relationships at federal and state levels - well positioned to benefit from continued regulatory and technological disruption, expected to positively affect the growth and expansion of the strategic communications market.
  • Well positioned for acquisitive growth and capability enhancements with established process for sourcing, negotiating and integrating quality, founder-led, small and mid-sized firms.

Proven track record of successful integration:

  • Since inception and as of 30 June 2021, the Group has screened 80 potential acquisition targets, conducted financial due diligence on 45 and ultimately acquired 8 businesses.
  • Since 2015, PPHC has generated 33.6 per cent. revenue CAGR of which 20.9 per cent. is organic.
  • Forbes Tate Partners, Alpine Group and Crossroads Strategies have been ranked consistently in the top 20 federal lobbying firms (Bloomberg Government, OpenSecrets.org) and maintain a high market share despite a highly fragmented market.

Highly experienced management team:

  • Management team brings decades of operational expertise across multiple sectors and a wide range of capabilities. Significant experience and track records scaling services businesses, including WPP plc.

Significant Addressable Market

  • The Group operates in the highly stable US strategic communications market, which represented $17.6bn opportunity in 2020. PPHC is rapidly expanding its services and capabilities through organic growth and acquisitions and is well positioned to benefit from the broadening needs of large, global clients who want and need integrated solutions.

Stewart Hall, CEO of PPHC, said:

The level of support we have received from high quality institutional investors despite the current challenging market conditions is a great endorsement of the strength of our business. Our listing and the funds raised will support plans to further scale our proven business platform and we look forward to delivering on that strategy.

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