Business
Sale of Questers for £7.5m
Sale of Questers for £7.5m.
About this update from Tpximpact Holdings Plc
[{"type":"text","content":"\n\n18 September 2023\n \nTPXimpact Holdings PLC\n(\"TPXimpact\", \"TPX\" or the \"Company\")\n \nSale of Questers for £7.5m\nReinforces strategic focus on core businesses\nFY24 and FY25 forecasts unchanged for revenue growth and EBITDA margins\n \nTPXimpact Holdings PLC (AIM: TPX), the technology-enabled services company focused on people-powered transformation, announces that it has completed the sale of Questers Resourcing Limited and Questers Bulgaria EOOD (\"Questers\") to pwrteams OÜ, the outsourcing and team augmentation business owned by Nortal AS (\"Nortal\"), for cash consideration of £7.5m.\n \nQuesters is based in Sofia, Bulgaria and has around 300 employees who provide cross-border IT support and related services to the commercial sector. For the year ended 31 March 2023, Questers generated £13.1m of revenue and £1.3m of Adjusted EBITDA. Gross assets as at 31 March were £7.6m.\nStrategic rationale The Board has a clear strategy to focus the Company on its core strengths of Digital Transformation and Digital Experience and has concluded that Questers' offering is no longer core to this strategy. The Board also believes that fresh ownership, under Nortal, will be better placed to take Questers to the next level of its development.\nProceeds and debt covenants\nTPXimpact has disposed of the entirety of its equity interests in Questers for cash consideration of £7.5m. Of this amount, up to £5.0m will be used to repay borrowings, with the remainder used to fund investment and growth in our core capabilities. Management are therefore targeting net debt (excluding lease liabilities) to be in the range of £11m to £12m at 31 March 2024, compared with £17.9m at 30 June 2023.\nThe Group's banking covenants require minimum cash liquidity levels on a monthly basis and minimum Adjusted EBITDA performance levels on a quarterly basis. The Group's bankers have agreed to revise the Adjusted EBITDA levels in these requirements, to allow for the deconsolidation of Questers from the Group's results.\n \nCurrent trading and forward guidance\n \nCurrent trading (excluding Questers) remains in line with budget and management expectations. The Board reiterates the FY24 targets of 15-20% like-for-like revenue growth and Adjusted EBITDA margins of 5-6%. These targets would equate to FY24 revenue in the range of £...