14 May 2025

TPXimpact Holdings PLC

("TPX", or the "Group", or the "Company")

Trading Update and Contract Wins

TPXimpact Holdings PLC (AIM: TPX), a leading technology-enabled services company focused on people-powered digital transformation, is pleased to provide an update on its Q4 and full-year trading for the year that ended 31 March 2025 ("FY25") and to provide guidance for the full year ending 31 March 2026 ("FY26").

FY25 Trading Performance

The Group delivered a solid fourth quarter, with trading in line with revised expectations and full-year revenue anticipated to be consistent with previous guidance. We have continued to improve the quality and resilience of our operations, a reflection of the strategic decisions taken earlier in the year to streamline our structure and focus on delivering value more efficiently. As a result, Adjusted EBITDA is expected to be at the top end of our 1-2% year-on-year margin growth range.

Disciplined working capital management and a strong finish to the year have also supported a reduction in net debt (excluding lease liabilities) to c.£8.5m, which is towards the lower end of the target range of 1.5x-2.0x for the year ending March 2025 and comfortably ahead of the Company's banking covenants.

Management expects to publish our preliminary, unaudited FY25 results in June 2025.

Contract Wins Strengthen Government Partnerships

The Company is proud to announce two recent significant contract wins that further cement its role as a trusted transformation partner to the UK Government:

●     A £7 million, two-year contract with the Department for Business and Trade (DBT), supporting the UK's growth agenda.

●     A £9 million (with an opportunity to extend by 50%), 12-month contract with His Majesty's Prison & Probation Service (HMPPS), delivering digital transformation to enhance public safety and justice services.

These recently signed awards are a clear endorsement of TPXimpact's ability to deliver at scale in a complex and evolving public sector environment and they highlight the real-world impact of TPXimpact's mission-driven approach.

Outlook for FY26: Positive Start, Cautious Optimism

Market conditions were unpredictable in FY25, with revenues reducing by 8-10% due to the General Election, Government spending challenges, and departmental restructurings leading to the cancellation of some tenders and delays to others. Management is cautiously optimistic that the trading environment will continue to improve through FY26 and expects to deliver meaningful progress in profitability, driven by TPXimpact's continued focus on operational discipline and greater productivity.

Analyst consensus forecast on FY25 Adjusted EBITDA is £4.9m*. Management is focused on protecting and growing profits in FY26 and targets a FY26 Adjusted EBITDA range of £6-7m. This is a reflection of the work undertaken during FY25 to improve the efficiency of the business and revenue conversion through to Adjusted EBITDA.

Management also expects net debt to continue to reduce, targeting a year-end range of £7-8m, resulting in a reduced leverage of around 1.0 - 1.5x net debt to Adjusted EBITDA, well within the Company's banking covenants.

*Note: Company compiled range is based on known sell-side analyst estimates that were updated following the Company's announcement on 6 February 2025. Prior to this announcement, the respective consensus figures are £76.1m Revenue and £4.9m Adjusted EBITDA.

Bjorn Conway, Chief Executive Officer of TPXimpact Holdings PLC, commented:

"Despite a challenging trading environment, I have been impressed at how our teams have continued to deliver vital services to our clients in a purposeful way, whilst embracing changes to our business. TPXimpact completes FY25 as a more effective and more resilient business, as demonstrated by the delivery of increased Adjusted EBITDA margins despite reduced revenues.

"The mid-term prospects for TPXimpact remain strong - we have deep, long-lasting client relationships, a clear strategy and we provide in-demand digital capabilities. TPXimpact is well-positioned to support its clients and deliver increased value in the year ahead."

This announcement contains inside information under the UK Market Abuse Regulation. The person responsible for arranging for the release of this announcement on behalf of the Company is Noel Douglas, CFO.

Enquiries:

About TPXimpact

We believe in a world enriched by people-powered digital transformation. Working in collaboration with organisations, we're on a mission to accelerate positive change and build a future where people, places and the planet are supported to thrive.

Led by passionate people, TPXimpact works closely with its clients in agile, multidisciplinary teams; challenging assumptions, testing new approaches and building confidence and capabilities. Combining our rich heritage with expertise in human-centred design, data, experience and technology, we work to create sustainable solutions with the flexibility to learn, evolve and change.

The business is being increasingly recognised as a leading alternative digital transformation provider to the UK public services sector, with over 90% of its client base representing public services.

More information is available at www.tpximpact.com.