REG - TPXimpact Holdings - Trading Update and Contract Wins

Tpximpact HoldingsAnnouncement

14/05/2025 07:00

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RNS Number : 5371I  TPXimpact Holdings PLC  14 May 2025

14 May 2025

TPXimpact Holdings PLC

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

Trading Update and Contract Wins

 

TPXimpact Holdings PLC (AIM: TPX), a leading technology-enabled services
company focused on people-powered digital transformation, is pleased to
provide an update on its Q4 and full-year trading for the year that ended 31
March 2025 ("FY25") and to provide guidance for the full year ending 31 March
2026 ("FY26").

FY25 Trading Performance

The Group delivered a solid fourth quarter, with trading in line with revised
expectations and full-year revenue anticipated to be consistent with previous
guidance. We have continued to improve the quality and resilience of our
operations, a reflection of the strategic decisions taken earlier in the year
to streamline our structure and focus on delivering value more efficiently. As
a result, Adjusted EBITDA is expected to be at the top end of our 1-2%
year-on-year margin growth range.

Disciplined working capital management and a strong finish to the year have
also supported a reduction in net debt (excluding lease liabilities) to
c.£8.5m, which is towards the lower end of the target range of 1.5x-2.0x for
the year ending March 2025 and comfortably ahead of the Company's banking
covenants.

Management expects to publish our preliminary, unaudited FY25 results in June
2025.

Contract Wins Strengthen Government Partnerships

The Company is proud to announce two recent significant contract wins that
further cement its role as a trusted transformation partner to the UK
Government:

●     A £7 million, two-year contract with the Department for Business
and Trade (DBT), supporting the UK's growth agenda.

●     A £9 million (with an opportunity to extend by 50%), 12-month
contract with His Majesty's Prison & Probation Service (HMPPS), delivering
digital transformation to enhance public safety and justice services.

These recently signed awards are a clear endorsement of TPXimpact's ability to
deliver at scale in a complex and evolving public sector environment and they
highlight the real-world impact of TPXimpact's mission-driven approach.

 

Outlook for FY26: Positive Start, Cautious Optimism

Market conditions were unpredictable in FY25, with revenues reducing by 8-10%
due to the General Election, Government spending challenges, and departmental
restructurings leading to the cancellation of some tenders and delays to
others. Management is cautiously optimistic that the trading environment will
continue to improve through FY26 and expects to deliver meaningful progress in
profitability, driven by TPXimpact's continued focus on operational discipline
and greater productivity.

Analyst consensus forecast on FY25 Adjusted EBITDA is £4.9m*. Management is
focused on protecting and growing profits in FY26 and targets a FY26 Adjusted
EBITDA range of £6-7m. This is a reflection of the work undertaken during
FY25 to improve the efficiency of the business and revenue conversion through
to Adjusted EBITDA.

Management also expects net debt to continue to reduce, targeting a year-end
range of £7-8m, resulting in a reduced leverage of around 1.0 - 1.5x net debt
to Adjusted EBITDA, well within the Company's banking covenants.

*Note: Company compiled range is based on known sell-side analyst estimates
that were updated following the Company's announcement on 6 February 2025.
Prior to this announcement, the respective consensus figures are £76.1m
Revenue and £4.9m Adjusted EBITDA.

Bjorn Conway, Chief Executive Officer of TPXimpact Holdings PLC, commented:

"Despite a challenging trading environment, I have been impressed at how our
teams have continued to deliver vital services to our clients in a purposeful
way, whilst embracing changes to our business. TPXimpact completes FY25 as a
more effective and more resilient business, as demonstrated by the delivery of
increased Adjusted EBITDA margins despite reduced revenues.

 

"The mid-term prospects for TPXimpact remain strong - we have deep,
long-lasting client relationships, a clear strategy and we provide in-demand
digital capabilities. TPXimpact is well-positioned to support its clients and
deliver increased value in the year ahead."

 

This announcement contains inside information under the UK Market Abuse
Regulation. The person responsible for arranging for the release of this
announcement on behalf of the Company is Noel Douglas, CFO.

 

 

 

 

 

Enquiries:

 TPXimpact Holdings                Via Alma Strategic

 Bjorn Conway, CEO

 Noel Douglas, CFO

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

 (Nomad and Joint Broker)

 Fred Walsh

 Brough Ransom

 Ben Good

 Sarah Wong

 Dowgate Capital Limited          +44 (0) 203 903 7715

 (Joint Broker)

 James Serjeant

 Russell Cook

 Amber Philipps
 Alma Strategic Communications    tpx@almastrategic.com

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

 Josh Royston

 Andy Bryant

 Louisa El-Ahwal

 

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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