TIDMTPX

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.GBP83 million with an Adjusted EBITDA margin of approximately 3%. Net debt (excluding lease liabilities) was below GBP18 million at 31 March 2023.

New business generation was strong during the fourth quarter, totalling GBP36 million, and that momentum has continued into the new financial year. April 2023 marked a record for the Group with new business wins exceeding GBP80 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 GBP49 million over four years and the Department for Education for GBP27.5 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 GBP80 million, which compares with GBP41 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 
   (Joint Broker) 
   James Serjeant 
   David Poutney 
   Russell Cook                       +44 (0) 203 903 7715 
 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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END

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May 05, 2023 02:00 ET (06:00 GMT)

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