Business
H1 Trading Update & Disposal of TPXimpact Norway
H1 Trading Update & Disposal of TPXimpact Norway.
About this update from Tpximpact Holdings Plc
[{"type":"text","content":"\n\n16 October 2023\nTPXimpact Holdings PLC\n(\"TPX\", \"TPXimpact\", or the \"Company\")\n\nFirst Half Trading Update & Disposal of TPXimpact Norway\nStrong first half trading in line with expectations; full year targets reiterated\nTPXimpact Holdings PLC (AIM: TPX), the technology-enabled services company focused on people-powered digital transformation, is pleased to provide an update on its first half trading for the period ended 30 September 2023 (\"H124\") and announce the disposal of TPXimpact Norway AS.\nFirst Half Trading\nThe Group's strong trading performance in H124 has been encouraging and in line with management expectations. The Board expects to report first-half revenues of £41-42 million which would equate to like-for-like1 revenue growth of around 20% for H124. Like-for-like1 Adjusted EBITDA margins are expected to increase to 4-5% in H124 from less than 3% in H123.\nNew business wins in H124 amounted to £105 million and the pipeline for new business remains robust. Net debt (excluding lease liabilities) was c. £13 million at 30 September 2023 (compared with £17.9 million at 30 June 2023) and the Company has comfortably satisfied its H124 banking covenants.\nThe Board expects to release the Group's interim results for H124 in early December 2023 and will provide more detail in due course.\nOutlook\nThe Board reaffirms its FY24 targets of 15-20% like-for-like1 revenue growth and Adjusted EBITDA margins of 5-6%. These targets would equate to FY24 revenue in the range of £80-85 million and Adjusted EBITDA in the range of £4-5 million. Management are targeting net debt (excluding lease liabilities) to be in the range of £11-12 million at 31 March 2024 and, therefore, a net debt to Adjusted EBITDA ratio of <2.5x by the end of the financial year, or shortly thereafter.\nThe outlook for FY25 is also maintained with like-for-like revenue growth of 10-15% and further margin improvement of 2-3% on top of that achieved in FY24.\n1Like-for-like performance excludes the Questers business (sold on 15 September 2023) and TPXimpact Norway (sold on 13 October 2023) from H124 results and FY24 targets and comparative figures.\nDisposal of TPXimpact Norway AS\nThe Board has assessed the prospects of the TPXimpact Norway business and concluded it is unlikely to contribute to the Group's targets for revenue growth and margin ...