(Alliance News) - Public Policy Holding Co Inc on Wednesday said its loss widened during 2024 as expenses rose, and the firm navigated a "challenging environment" amid US election activity.
The Washington, DC-based group of advisory firms specialising in government affairs and public relations said its pretax net loss for 2024 was USD17.4 million, widened from GBP6.7 million in 2023.
Revenue grew 11% to USD149.6 million from USD135.0 million, but total operating expenses increased 17% to USD165.3 million from USD140.8 million.
Public Policy declared a final dividend of 4.70 US cents, bringing the total dividend for the year to 9.40 cents per share. This is down 34% on-year from 14.30 cents per share, reflecting the intended dividend reduction announced in January, "aimed at retaining more of the group's strong cash flow and enabling the group to continue pursuing accretive [mergers & acquisitions] and drive long-term growth".
"2024 demonstrated the resilience and adaptability of PPHC," said Chief Executive Officer Stewart Hall.
"Public Affairs navigated a challenging environment, with clients adopting a traditionally more cautious approach to project spending in a US presidential election year. However, we saw a decisive turnaround in the second half as clients prepared for 2025. Government Relations continued to perform strongly and the high quality of our operations in this sphere is renowned, while Diversified Services showed exceptional growth, highlighting the value of our balanced portfolio approach.
"The M&A we achieved in FY2024 reflects significant milestones in our growth strategy, expanding our geographic reach and service capabilities. With M&A continuing in FY2025, via TrailRunner International, we have a sun-to-sunset presence with global operations. The addition of TrailRunner significantly enhances our global communications capabilities and client offerings across key markets in the US and Asia."
Public Policy reiterated its medium-term guidance of organic revenue growth between 5% and 10%, as well as an underlying earnings before tax, depreciation and amortisation margin between 25% and 30%.
CEO Hall continued: "We remain extremely well positioned to capitalise on increased policy activity following the US election cycle and growing demand for our services internationally. The strong finish to FY2024, coupled with robust new business activity and M&A, gives us confidence in delivering accelerated growth in the year ahead as we progress towards our ambition to reach USD500 million revenue in the medium-term".
Public Policy shares were up 0.7% at 136.00 pence each on Wednesday afternoon in London.
By Emily Parsons, Alliance News reporter
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