UK's TPXimpact H1 revenue rises 60% on government demand; debt cleared

Overview

• UK digital transformation firm's H1 revenue rose 60% yr/yr to £57.9 mln

• Adjusted EBITDA for H1 up 152% to £8.0 mln, margin increased to 13.9%

• Company moved to net cash of £1.0 mln, eliminating net debt during the period

Outlook

• TPXimpact reaffirms FY27 guidance for revenue of at least £105m

• Company expects FY27 adjusted EBITDA of at least £14m

• TPXimpact says trading in October has been strong, continuing year-to-date trend

Result Drivers

• NEW CONTRACT WINS - Co said strong new business wins, particularly with UK government departments and public sector clients, drove revenue growth

• CLIENT DEMAND - Co attributed growth to robust demand from existing and new public sector clients, with 94% of revenue from public sector and 70% from central government

• COST MANAGEMENT - Co said adjusted EBITDA growth was supported by close management of central costs and operational leverage as the business scaled

Company press release:

Key Details

Analyst Coverage

• Wall Street's median 12-month price target for Tpximpact Holdings PLC is GBp150.00, about 39.5% above its November 9 closing price of GBp107.50

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Nov 9 - UK's Kainos Group H1 revenue rises 37% on public sector contracts

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)