REG - TPXimpact Holdings - Major Contract Win, H1 Update & Notice of Results

Tpximpact HoldingsAnnouncement

12/11/2024 07:00

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RNS Number : 7910L  TPXimpact Holdings PLC  12 November 2024

12 November 2024

TPXimpact Holdings PLC

("TPXimpact", or the "Group", or the "Company")

Major Contract Win

First Half Trading Update & Notice of Results

Awarded digital transformation contract with MHCLG worth up to £19 million
over 3 years

First half trading in line with market expectations; full year targets
reaffirmed

TPXimpact Holdings PLC (AIM: TPX), the technology-enabled services company
focused on people-powered digital transformation, is pleased to announce a
major contract award from the Ministry for Housing, Communities and Local
Government ("MHCLG") and provides an update on its trading performance for the
first half of the financial year ending 30 September 2024 ("H125").

Major Contract Award

The award from MHCLG of up to £19 million over three years provides TPXimpact
with a pivotal role in supporting the delivery of MHCLG's ambitious digital
reform programme to modernise the planning systems utilised across England. A
future state of data-driven, standards-based systems will be more efficient
and robust, whilst making it easier for citizens and communities to engage in
planning and development. This initiative is well-aligned with the
Government's mission to promote sustainable economic growth and the
cost-effective delivery of new housing to meet urgent national demand.

First Half Trading Update

Trading performance in H125 was in line with the update issued on 10 September
2024. The Board expects to report first-half revenues of almost £38 million,
down approximately 9% on H124. Adjusted EBITDA margins are expected to
increase to c. 6% (H124: 4.8%).

New business wins accelerated to £26 million in Q2 from £9 million in Q1.
This positive momentum has continued into Q3 with new business of £24 million
already won in the quarter, including the £19 million award from MHCLG.

Net debt (excluding lease liabilities) was less than £8 million at 30
September 2024 (H124: £12.8 million), giving rise to a leverage ratio (net
debt to rolling 12 month Adjusted EBITDA) of around 1.6x, a significant
improvement from a year ago.

Outlook

The Company is well-positioned to support the Government's five missions for a
better Britain and its focus on sustained growth over the course of the
Parliament. As the MHCLG win amply illustrates, there is plenty of opportunity
for TPXimpact to play a major part in the Government's digital transformation
initiatives as and when they materialise. There is improved visibility in
relation to Central Government spending plans following the conclusion of the
Departmental Spending Reviews and the Chancellor's Budget announced on 30
October. We expect this to feed through to new initiatives in the next
financial year, with an increase in activity in the second half of the current
year.

Our confidence in the Company's long-term growth prospects therefore remains
strong and the Board reaffirms its FY25 target of flat revenue growth, with an
adjusted EBITDA target of £7-8 million in line with consensus estimates. The
Board also remains positive about the outlook for FY26, with like-for-like
revenue growth targeted at 10-15% and an Adjusted EBITDA margin target of
10-12% compared to 5.5% in FY24.

Björn Conway, Chief Executive Officer at TPXimpact, said:

"I am pleased with our progress in the first half of FY25, despite a
challenging market environment. The Chancellor's Budget announced on 30
October provided improved visibility in relation to Central Government
spending plans for the next financial year, which should result in an uplift
in activity in the second half of this financial year. The Company has
continued to improve profitability in the first half of the year, despite
top-line challenges. The increased momentum in new business wins, combined
with the impact of the business improvement and cost saving actions conducted
in August and September, provides a solid foundation for the second half of
the year.

"I am especially pleased to announce the Ministry for Housing, Communities and
Local Government (MHCLG) win which exemplifies the strength and depth of our
expertise in digital transformation capabilities and, in particular, planning
reform. This award of up to £19 million builds on the success of our existing
two-year partnership with MHCLG where we have demonstrated our ability to
deliver tangible outcomes that align with the government's evolving policy
agenda.

"As we stand at the mid-point of our three-year strategic plan, I remain
confident in our ability to execute our strategy successfully and deliver on
our objectives. The opportunity for TPXimpact remains very positive and we
look forward to continued progress in the coming months."

Notice of Results and Presentations

TPXimpact will announce its interim results for the six months ended 30
September 2024 on Thursday 28 November 2024.

Björn Conway, CEO, and Steve Winters, CFO, will be hosting live online
webinars on the day of results for analysts and retail investors at 9.30am and
11:30am, respectively.

If you would like to register for the analyst webinar, please contact
tpx@almastrategic.com.

Retail investors who are interested in attending the presentation can register
with  Investor Meet Company for free at:
https://www.investormeetcompany.com/tpximpact-holdings-plc/register-investor
(https://www.investormeetcompany.com/tpximpact-holdings-plc/register-investor)

Investors who already follow TPXimpact on the Investor Meet Company platform
will automatically be invited.

Attendees will have the opportunity to ask questions to management as part of
the event, with feedback collected following the meeting. If there isn't time
to address your question live, please send it to tpx@almastrategic.com, and we
will respond to you directly.

A recording of the Investor Meet Company webinar will be posted shortly after
the event on the Group's website.

- Ends -

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018. The person responsible for this
announcement is Steve Winters, Group CFO.

Enquiries:

 TPXimpact Holdings

 Bjorn Conway, CEO                Via Alma Strategic

 Steve Winters, CFO

 Stifel Nicolaus Europe Limited   +44 (0) 207 710 7600

 (Nomad and Joint Broker)

 Fred Walsh

 Ben Good

 Sarah Wong

 Dowgate Capital Limited

 (Joint Broker)                   +44 (0) 203 903 7715

 James Serjeant

 Russell Cook

 Alma Strategic Communications    tpx@almastrategic.com

 (Financial PR)                   +44 (0) 203 405 0209

 Josh Royston

 Kieran Breheny

 

 About TPXimpact

We believe in a world enriched by people-powered digital transformation.
Working in collaboration with organisations, we're on a mission to accelerate
positive change and build a future where people, places and the planet are
supported to thrive.

Led by passionate people, TPXimpact works closely with its clients in agile,
multidisciplinary teams; challenging assumptions, testing new approaches and
building confidence and capabilities. Combining our rich heritage with
expertise in human-centred design, data, experience and technology, we work to
create sustainable solutions with the flexibility to learn, evolve and change.

The business is being increasingly recognised as a leading alternative digital
transformation provider to the UK public services sector, with over 90% of its
client base representing public services.

More information is available at www.tpximpact.com.

 

 

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