Here is a summary of the key points from the trading update provided by TPXimpact Holdings PLC
Despite a strong pipeline of new business opportunities, TPXimpact expects flat revenue growth for FY25 due to slowed award and spend on projects in the Central Government sector, which accounts for 65% of its revenues.
The company attributes this slowdown to additional approval processes and spending controls implemented by the government following its announcement of a budget deficit. These measures are expected to remain in place until at least the conclusion of the Spending Review and the announcement of the Budget on October 30, 2024.
TPXimpacts first-half revenues are expected to be down 8-10% compared to the previous year, with a return to growth anticipated in the second half.
To improve operational efficiency, the company has taken action primarily related to staff costs, expecting annualized savings of over £3 million.
Despite the flat revenue growth forecast for FY25, TPXimpact maintains its Adjusted EBITDA target of £7-8 million, reflecting the benefits of cost-saving actions.
The Board remains confident in the companys position in its key markets and maintains its targets for FY26, including revenue growth of 10-15% and an Adjusted EBITDA margin of 10-12%.
CEO Björn Conway acknowledges the challenging market conditions but expresses confidence in the companys capabilities and the continued importance of digital transformation in Central Government strategy.
TPXimpact remains focused on its mission to drive people-powered digital transformation and create positive change for people, places, and the planet.