Tpximpact Holdings Plc · LSE:TPX
Tpximpact — FY2023 Earnings Presentation
35 slides from Tpximpact's earnings presentation, July 2023
Slide 1: Full Year Results, Year ended 31 March 2023
Year ended 31 March 2023 FULL YEAR RESULTS July 2023 1
Slide 2: Meet the Team
MEET THE TEAM Björn Conway Steve Winters CEO CFO ● As a Partner at PA, Björn led business transformation programmes for ● Steve joined TPXimpact in April 2022, leading finance large private and public sector clients. transformation before becoming Group CFO in September 2022. ● Björn was EY's UK Gove
Slide 3: Contents
FY23 summary 5 Market overview 6 Who we are 8 Our experience 12 CONTENTS Financial and ESG 16 results Vision for the future 24 Current trading and 27 outlook 3
Slide 4: FY23 Summary
FY23 SUMMARY 4
Slide 5: Summary
SUMMARY Revenue1 Adjusted EBITDA1 New Business Net debt at year-end2 £83.7m £2.5m £115m Over £90m in Q1 of FY24 £17.5m Up 5% against last year; down EBITDA Margin of 3% 7.2% on a like-for-like basis (FY2022: £79.7m) (FY2022: £12.2m;; Margin of 15%) (FY2022: £10.1m) Sectors Sub sectors 21.1% headcoun
Slide 6: Digital Transformation Market Overview
DIGITAL TRANSFORMATION MARKET OVERVIEW A rapidly growing market in which TPXimpact has significant growth opportunity 6
Slide 7: Digital Transformation
DIGITAL TRANSFORMATION TPXimpact operates across the UK Software and IT Services Sector, predicted to reach £77.9bn by 2025 with a CAGR of 6.6%*. Public Commercial NFP Central Hybrid cloud Cost of living Government digital solutions reduce affecting charity sector growth cost, mitigate risks donatio
Slide 8: Who We Are
TPXimpact WHO WE ARE Bjorn Conway
Slide 9: People-powered Transformation
People-powered TRANSFORMATION We're building a future where people, places and the planet are supported to thrive. Motivated by a belief that the way people experience the world matters, we’re on a mission to accelerate positive change. Combining rich heritage and expertise in human-centred design,
Slide 10: What We Do For Our Clients
WHAT WE DO FOR OUR CLIENTS Design Data Experience Technology We make data easy to find, access, Experience is everything. We'll help They rely on us to help them build the We'll help them apply design thinking and use, harnessing the power of AI, them connect with their audiences high-quality, scalab
Slide 11: Our Reach Is Growing
OUR REACH IS GROWING Our team is made up of 1,100 permanent staff and associates. We work with a hybrid approach, using regional hubs and remote working between our teams and with our clients. This helps us ensure the continuity of our services and allows our people the flexibility to choose the righ
Slide 12: Our Experience
OUR EXPERIENCE Björn Conway 12
Slide 13: Co-designing Teacher Identity with the Department for Education
CO-DESIGNING TEACHER IDENTITY WITH THE DEPARTMENT FOR EDUCATION Client: Department for Education Challenge: Impact: The Department for Education (DfE) lacked an Our collaborative work with DfE revealed 12 areas accurate database of UK teachers, hindering their where Teacher ID could streamline admin
Slide 14: Providing a Business Continuity Solution for Out of Hours
PROVIDING A BUSINESS CONTINUITY SOLUTION FOR 111 OUT OF HOURS Client: Digital Health and Care Wales Challenge: Impact: The 111 Out of Hours (111 OOH) GP service in Wales The all-Wales solution provided case visibility, faced a major challenge when a cyber attack shut reducing misassignment and lost
Slide 15: Improving Accessibility Across Heritage Collections
IMPROVING ACCESSIBILITY ACROSS HERITAGE COLLECTIONS Client: Durham County Council Challenge: Impact: Durham County Council needed to organise The collaboration enhanced accessibility to the unstructured historical collections lacking archives, democratising heritage and eliminating the consistent me
Slide 16: Financial & ESG Results
Steve Winters FINANCIAL & ESG RESULTS 16
Slide 17: Financial Results
FINANCIAL RESULTS Revenue3 Adjusted EBITDA1,3 Adjusted profit Adj diluted EPS1,3 Operating loss3 before tax1,3 £83.7m £2.5m £0.7m 0.7p -£19.4m (FY2022: £79.7m) (FY2022: £12.2m). (FY2022: £10.9m) (FY2022: 11.3p) (FY2022: Profit £3.2m) Like-for-like Revenue Adj EBITDA margin1,3 Sales backlog Net debt at
Slide 18: Revenue by Year and Quarter
REVENUE BY YEAR AND QUARTER *FY2024 represents the revenue range based upon our 15-20% growth target **Represents revenue growth for the first 2 months of FY24 18
Slide 19: FY23 Revenue Split
FY23 REVENUE SPLIT By Business 8.7% 16.9% 38.9% 20.0% 15.5% Consulting Digital Experience Platforms & Managed Services (RedCortex & KITS) International @ Data & Insight TPXimpact ma) Wl
Slide 20: Reconciliation of FY23 Operating Loss to Adj EBITDA
RECONCILIATION OF FY23 OPERATING LOSS TO ADJ EBITDA 20
Slide 21: ESG Value Creation
ESG VALUE CREATION We’re building a future where organisations improve lives in an equitable and responsible way. Our ESG focus supports a future-proof business and drives long-term value creation PEOPLE PLACES PLANET A diverse & engaged Thriving Sustainable business workforce communities operations
Slide 22: ESG Results
ESG RESULTS Permanent New jobs Ethnic minority Female FTE created (FTE)* representation representation 798 139 19% 50% (FY2022: 607) (FY2022: 63)*Excluding (FY2022: 19%) (FY2022: 47%) acquisitions Social value weighting Revenue from public tC02e per FTE tCO2e by£1m Hours donated attributed to winnin
Slide 23: ESG Highlights
ESG HIGHLIGHTS Introduction of new Paying back 100% of our Launching our purpose Championing company values historic carbon debt platform underrepresented entrepreneurs We’ve introduced our new We fulfilled our commitment to In order to streamline our company values: Purpose, pay back the entire hist
Slide 24: Vision for the Future
VISION FOR THE FUTURE Björn Conway 24
Slide 25: Vision for the Future
VISION FOR THE FUTURE People Powered Transformation TPXimpact will be an integrated, focused, and high performing purpose-driven digital transformation business. Our clients will benefit from a coherent and This vision represents differentiated end-to-end transformation offer, the practical fulfilment
Slide 26: Direction of Travel
DIRECTION OF TRAVEL GROW & DIFFERENTIATE Building a platform for an integrated FORM & INTEGRATE transformation business FOCUS & BALANCE ● Accelerate growth primarily through digital transformation business, but ● Integrate complementary also in digital experience agency ● More commercially balanced
Slide 27: Current Trading and Outlook
CURRENT TRADING AND OUTLOOK 27
Slide 28: Looking Forwards… Q&A
LOOKING FORWARDS… Q&A Current trading Outlook ● Strong start to FY24 with over £90m of new business won, ● After a challenging year, the Group now has a clear strategy and including record wins with DfE and HMLR in April 2023. 3-year plan to build on the already strong foundations of successful ● Tr
Slide 29: Thank You
e » | THANK YOU TPXimpact
Slide 30: Appendix
Appendix TPXimpact 30
Slide 31: Income Statement
Income statement FY2023 FY2022 INCOME STATEMENT Continuing operations £’000 Statutory Statutory Revenue 83,680 79,709 Gross profit 20,905 24,368 STATUTORY GM % 25.0% 30.6% Administrative costs: Reported figures include the impact of acquisitions completed Staff costs (12,643) (9,006) in the last twelv
Slide 32: Statement of Financial Position
Balance Sheet FY2023 FY2022 STATEMENT OF £’000 Goodwill 59,486 66,157 FINANCIAL POSITION Intangible assets Tangible assets 23,458 1,911 28,493 1,590 Cash 6,772 7,914 Net assets decreased in the year by £11.9m largely due to the £11.8m Other investments 2,188 - impairments of goodwill and intangible
Slide 33: Cash Flow/Net Debt
Cash Flow FY2023 FY2022 £’000 CASH FLOW/NET DEBT Cash from operations activities before NWC (1,918) 7,444 Net Working Capital 130 (266) Cash from continuing operating activities (1,788) 7,178 Cash from total discontinuing operating activities - (563) Net cash from total operating activities (1,788)
Slide 34: Adj Profit After Tax Reconciliation
ADJ PROFIT AFTER TAX Profit after tax FY2023 FY2022 Continuing operations £’000 RECONCILIATION Statutory profit /(loss) before tax (20,470) 2,526 Amortisation of intangible assets 6,347 5,347 Loss on fair value movement of Directors believe that an ‘adjusted profit before tax’ contingent consideration
Slide 35: Share Count
SHARE COUNT Ordinary shares FY2023 FY2022 Number of shares ‘000 Year-end 91,876 87,387 Weighted average 90,613 84,583 Contingent consideration 284 1,698 Own shares - SIP/EBT (712) (70) Average basic 90,185 86,211 Dilutive share options outstanding 3,839 1,768 Average diluted 94,024 87,979 35