TPXimpact meets all full-year financial targets

9th Jul 2024 12:15

(Sharecast News) - TPXimpact announced its unaudited preliminary results on Tuesday, meeting all of its financial targets and exceeding market expectations for the year ended 31 March.

The AIM-traded company, formerly known as the Panoply Holdings, reported a record high in new business, securing £139m over the year.

Revenue from continuing operations increased 21% to £84.3m, compared to £69.7m in 2023.

Adjusted EBITDA more-than-doubled to £4.6m, up from £2.3m, with an improved EBITDA margin of 5.5%, compared to 3.3% in the prior year.

Despite a reported operating loss of £22.8m, which included a £16.2m non-cash impairment charge on goodwill and intangible assets, adjusted profit before tax from continuing operations rose to £1.8m from £0.8m.

Net debt decreased significantly to £7.1m - the lowest level in over three years.

Operationally, TPXimpact said it successfully executed the first year, and parts of the second year, of its three-year plan, simplifying its business into three core units - digital transformation, manifesto, and KITS.

The company said it also completed the sale of non-core international businesses Questers and TPXimpact Norway, generating £7.5m in gross cash proceeds.

Other achievements included the rationalisation of its property portfolio, improved staff retention rates, a reduction in the gender pay gap, increased ethnically diverse representation, and a decrease in carbon intensity.

Additionally, TPXimpact achieved B-Corp Certification in January.

Looking ahead, TPXimpact said it had started the 2025 financial year in line with budget, reporting over 11% like-for-like revenue growth in the first two months.

With £9m of new business won in the first quarter, and a strong pipeline of opportunities, the company said it remained on track to achieve its full-year targets.

They included like-for-like revenue growth of 10% to 15% and an increase in adjusted EBITDA margins by two to three percentage points compared to 2024, with growth expected to be more weighted towards the second half of the year.#

The outlook for 2026 remained unchanged, targeting revenue growth of 10% to 15% and adjusted EBITDA margins of 10% to 12%.

"I am delighted by the rapid progress the company has made in the first year of our three-year plan," said chief executive officer Bjorn Conway.

"We have successfully executed the strategy we laid out a year ago and the numbers tell the story of that success, achieving all our financial targets and ahead of market expectations.

"The simplification of the business into our three core platforms of digital transformation, manifesto and KITS was achieved ahead of schedule and we have entered the new financial year with a more stable financial and organisational foundation for future growth and success."

Conway said the current pipeline of new business opportunities was robust and despite the phasing effect of an early general election, had not diminished the appetite for the digital transformation services that formed the bedrock of its offering.

"Demand for the insightful, effective and thought-provoking advice and support that is at the heart of our capabilities is set to continue for the foreseeable future.

"Commercial success and opportunity, however, go hand-in-hand with our founding vision of believing business can fully contribute to a better world for all its citizens.

"With staff retention of 88%, we have a passionate, as well as talented, group of people ready to make the world a better place for all our stakeholders.

"Our successful accreditation as a registered B-Corp was a tremendous achievement which reaffirms our values and ways of doing business."

At 0952 BST, shares in TPXimpact Holdings were up 0.46% at 43.7p.

Reporting by Josh White for Sharecast.com.