10th Sep 2024 14:04
(Alliance News) - TPXimpact Holdings PLC on Tuesday said it is well positioned for the future although the firm expects to report flat revenue in the current financial year 2025 that ends on March 31.
The London-based technology-enabled services company focused on digital transformation said new business wins in the second quarter of financial 2025 amounted to GBP17 million, up 89% from GBP9 million in the prior quarter.
TPXimpact has implemented measures aimed at improving operational efficiency, primarily relating to staff costs. The company expects to save more than GBP3 million on an annualised basis with an in-year benefit of approximately half this amount in financial 2025.
In addition, a one-off restructuring cost is forecast to reach GBP1 million.
Chief Executive Officer Bjorn Conway said: "The July General Election promised stability in the second half of the year and we were encouraged by the alignment between our service offerings and the new government's manifesto pledges. However, it has become increasingly evident that the current public sector focus on budget constraint and spending controls will persist until after the conclusion of the Government's Spending Review and Autumn budget".
Looking ahead, TPXimpact expects to report flat revenue growth for financial 2025 in line with GBP84.3 million reported in the previous year.
However, the board has maintained its financial 2025 target of GBP7 million to GBP8 million in adjusted earnings before interest, tax, depreciation, and amortisation. This reflects a 52% increase from GBP4.6 million in financial 2024 at the lower end of guidance.
An adjusted Ebitda margin of 8% to 9% is also expected, up from 5.5% last year.
TPXimpact commented: "With respect to FY26, the board is maintaining its targets of like-for-like revenue growth of 10-15% and an adjusted Ebitda margin of 10-12%. The board remains confident that the company is strongly positioned in its key markets, with significant opportunities in digital transformation and responsible AI.
"[TPXimpact] will continue to be an attractive and value-added proposition for our clients. Irrespective of the short-term market factors at play, we firmly believe that Digital Transformation will continue to be a major part of Central Government strategy, and public services more widely, for the foreseeable future."
TPXimpact shares were down 9.1% at 40.01 pence each in London on Tuesday afternoon.
By Elijah Dale, Alliance News reporter
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