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Highlights
- Major Contract Award: TPXimpact wins up to £19 million contract with the Ministry for Housing, Communities and Local Government (MHCLG) to modernize planning systems in England.
- H1 FY25 Trading Performance: Revenues expected at £38 million, down 9% from the previous year, but EBITDA margins increase to 6%.
- Strong Business Momentum: New business wins surged to £26 million in Q2 and continued into Q3 with £24 million in new contracts.
TPXimpact Holdings PLC (LSE:TPX), a technology-enabled services company focused on digital transformation, has announced a significant contract win from the Ministry for Housing, Communities and Local Government (MHCLG). The contract, valued at up to £19 million over three years, will see TPXimpact play a crucial role in modernizing the planning systems used across England. This initiative is part of the government’s broader efforts to create data-driven, efficient, and robust systems that facilitate greater public engagement in planning and development, addressing the urgent need for new housing.
In addition to the contract win, TPXimpact provided an update on its trading performance for the first half of the financial year ending 30 September 2024 (H125). The company expects first-half revenues of approximately £38 million, reflecting a 9% decline compared to the same period in FY24. However, the company is seeing positive momentum, with adjusted EBITDA margins increasing to around 6% (up from 4.8% in H124).
TPXimpact experienced strong new business growth, with £26 million of new contracts secured in Q2, significantly higher than the £9 million recorded in Q1. This positive momentum has continued into Q3, with £24 million of new business already won, including the £19 million contract with MHCLG.
The company also reported a reduction in net debt to less than £8 million at the end of September 2024, a notable improvement from £12.8 million in the previous year. This brings the leverage ratio to approximately 1.6x, signaling strong financial health.
Looking ahead, TPXimpact remains optimistic about its long-term prospects, with an emphasis on supporting the UK Government's digital transformation initiatives. The company expects increased activity in the second half of the year, driven by clearer visibility into Central Government spending following the Departmental Spending Reviews and the Chancellor's Budget. The Board has reaffirmed its FY25 target for flat revenue growth and an adjusted EBITDA of £7-8 million. For FY26, TPXimpact is targeting 10-15% like-for-like revenue growth and an adjusted EBITDA margin of 10-12%, up from 5.5% in FY24.
