REG - TPXimpact Holdings - Trading Statement

Tpximpact HoldingsAnnouncement

05/05/2023 07:00

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RNS Number : 4993Y  TPXimpact Holdings PLC  05 May 2023

5 May 2023

TPXimpact Holdings PLC

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

Trading Update

Current trading at the higher end of previous forecasts and updated guidance
for FY24 & FY25

 

TPXimpact Holdings PLC (AIM: TPX), the technology-enabled services company
focused on digital transformation, is pleased to provide an update on its Q4
and full year trading for the year ended 31 March 2023 and to provide guidance
for the full years ending 31 March 2024 and 2025.

Q4 and Full Year Trading

Trading for the fourth quarter of the year was at the higher end of previous
guidance.

As a result, and based on the Group's unaudited management accounts for the
year, the Board expects to report revenue of c.£83 million with an Adjusted
EBITDA margin of approximately 3%. Net debt (excluding lease liabilities) was
below £18 million at 31 March 2023.

New business generation was strong during the fourth quarter, totalling £36
million, and that momentum has continued into the new financial year.  April
2023 marked a record for the Group with new business wins exceeding £80
million, highlighting the opportunity available for TPX as it secures larger
contracts while optimised for efficiency under one brand. This was primarily
due to the two major new contracts announced on 28 April with HMLR (His
Majesty's Land Registry) for up to £49 million over four years and the
Department for Education for £27.5 million over two years, both commencing
May 2023. These wins provide a solid foundation for the current financial year
and beyond.

The Board expects to release the Group's preliminary, unaudited results for
the year ended 31 March 2023 in late June 2023 and will provide more detail on
the FY23 outturn at that time.

Outlook

The Group has completed its budgeting process for the year ending 31 March
2024 (FY24). As a result of strong new business performance, the Board is
raising its guidance on organic revenue growth to 15-20% for FY24 (from 10-15%
previously) and is targeting an Adjusted EBITDA margin of 5-6%, which also
reflects continued investment in our people and systems. Management expect
margin improvement to be weighted to the second half of the year.

Committed (or backlog) revenues for FY24 are currently around £80 million,
which compares with £41 million at the same time last year.

With respect to FY25, management are targeting organic revenue growth of
10-15% and a further improvement in Adjusted EBITDA margin of 2-3% on top of
that targeted for FY24.

Debt covenants

Further to the trading update announced on 31 March 2023, and the waiver of
the Group's debt covenant tests at that date, management continue to engage
positively with the Group's bankers in relation to their review of the Group's
short and medium term cash flow forecasts. These discussions are ongoing and
the Board will provide an update in due course.

- 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 PLC           Via Alma PR

 Bjorn Conway, Group CEO

 Steve Winters, Group CFO

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

 (Nomad and Joint Broker)

 Alex Price

 Fred Walsh

 Ben Burnett
 Dowgate Capital Limited           +44 (0) 203 903 7715

 (Joint Broker)

 James Serjeant

 David Poutney

 Russell Cook
 Alma PR                          +44 (0) 203 405 0209

 (Financial PR)                   tpx@almapr.co.uk

 Josh Royston

 Kieran Breheny

 Matthew Young

 

About TPXimpact

TPXimpact exists to transform the organisations, services and systems that
underpin society and that drive business success. It applies strategic and
creative thinking, technology, innovative design and user-centred approaches
to bring about numerous improvements which together multiply the impact of
change.

The Company works closely with its clients in agile, multidisciplinary teams
that span organisational design, technology, and digital experiences. It
shares a deep understanding of people and behaviours and a philosophy of
putting people and communities at the heart of every transformation.

The business is being increasingly recognised as a leading alternative digital
transformation provider to the UK public services sector, with c.65% of its
client base representing the public sector and c.35% representing the
commercial sector.

More information is available at www.tpximpact.com.

 

 

 

 

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