IBEX reports record growth despite COVID challenge

IBEX Limited, a global provider in business process outsourcing (BPO) and end-to-end customer engagement technology solutions, on September 15 announced financial results for the fourth quarter and fiscal year ended June 30, 2021.

Chief executive officer (CEO) Bob Dechant disclosed revenues of US$443.7 million, approximately 10 per cent organic growth, and adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of US$66.2 million, a 20 per cent increase, despite what he described as “an incredibly challenging COVID-19 environment”. The company closed the year with US $57.8 million cash and cash equivalents.

Ibex Chief Executive Officer Bob Dechant (right) engages with Industry, Commerce, Agriculture and Fisheries Minister Audley Shaw (left) in discussion at the opening ceremony of the third location of Ibex, at the Courtleigh Auditorium on St Lucia Avenue in New Kingston, Jamaica.

Founded in 2017, IBEX Limited provides customer lifecycle experience solutions in the United States and internationally, with five sites in Jamaica. The company uses the ibex Connect model, a customer engagement solution comprising customer service, technical support, and other value-added outsourced back office services.

As of June 30, 2020, IBEX operated 25 customer engagement and three customer acquisition delivery centres. It serves telecommunications and cable, technology, retail, health care, financial services, and utilities. IBEX is headquartered in Washington, District of Columbia, and operates as a subsidiary of Resource Group International Limited.

Dechant said that over 3,200 seats are expected to come online in the first half of fiscal year 2022.

“In fiscal year 2016, we pivoted our business away from a commoditised voice-only business and shifted focus to the digital-first marketplace, where we can fully leverage our differentiated capabilities. As a result of this shift, these new customers now represent US$230 million, or 52 per cent, of our current revenues, and have grown at a five-year CAGR of 84 per cent, with an equally impressive 40 per cent increase this past year,” Dechant said.

In addition, Dechant said, “ I am proud to announce that we have also retained 100 per cent of our top 20 clients for the fiscal year, extending this achievement to four consecutive years, which is further evidence of continued client confidence.”

IBEX, he indicated, added over 3,300 new seats – a 34 per cent increase – to its high-margin nearshore and offshore footprint.

Ibex Global Limited’s offices in Portmore, St Catherine, Jamaica

Dechant stated, “With the business we won from new and existing clients in fiscal year 2021, we also established a revenue backlog of another 3,200 seats that are expected to launch in the first half of fiscal year 2022 to service this demand, which will bring our total footprint to over 21,000.”

“More importantly”, he added, “we are delivering these record margins while our regions are currently at 50 per cent usable capacity due to social distancing restrictions in place; we estimate that this existing footprint would afford us additional revenue potential of $200 million annually in a pre-pandemic operating environment.

“Our balance sheet transformation is almost complete with a growing cash balance. With a high-performance, customer-first business model, the wind at our back, and high ROI [return on investment] opportunities in front of us, we’re positioned well for flexible and highly attractive capital allocation and superior compounded shareholder returns.”