Business
Trading Statement
Trading Statement.
About this update from Tpximpact Holdings Plc
[{"type":"text","content":"\n\n5 May 2023\nTPXimpact Holdings PLC\n(\"TPX\", \"TPXimpact\", or the \"Company\")\n\nTrading Update\nCurrent trading at the higher end of previous forecasts and updated guidance for FY24 & FY25\n \nTPXimpact 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.\nQ4 and Full Year Trading\nTrading for the fourth quarter of the year was at the higher end of previous guidance.\nAs a result, and based on the Group's unaudited management accounts for the year, the Board expects to report revenue of c.£83 million with an Adjusted EBITDA margin of approximately 3%. Net debt (excluding lease liabilities) was below £18 million at 31 March 2023.\nNew business generation was strong during the fourth quarter, totalling £36 million, and that momentum has continued into the new financial year. April 2023 marked a record for the Group with new business wins exceeding £80 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 £49 million over four years and the Department for Education for £27.5 million over two years, both commencing May 2023. These wins provide a solid foundation for the current financial year and beyond.\nThe 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.\nOutlook\nThe 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.\nCommitted (or backlog) revenues for FY24 are currently around £80 million, which compares with £41 million at the same time last year.\nWith respect to FY25, mana...