(Alliance News) - TPXimpact Holdings PLC on Thursday said quarterly trading was in line with expectations, but that it expects decreased revenue for financial 2025 and growth at the lower end of forecasts for the year after.
Shares in TPXimpact were trading 16% lower at 27.00 pence each late on Thursday morning in London.
The London-based technology-enabled services company confirmed that trading for the third quarter ended December 31 met management expectations. It secured approximately GBP30 million in new business, of around GBP65 million throughout the nine-month period, and "profitability and margins [aligned] with the company's forecasts".
However, TPXimpact said it expects full-year revenue, for the 12 months ending on March 31, to decline by between 8% and 10% annually.
"Although we are pleased with our positive Q3 results, our Digital Transformation business has not seen the anticipated return to normal trading conditions during Q4 to date," TPXimpact explained. "Macroeconomic conditions and the post-election budgetary issues highlighted by the incoming government, despite significant appetite for digital transformation, have led to delays in the procurement of large digital transformation programmes with tender and award decisions moving by many months."
For the next financial year, the company expects its final budget to show revenue growth at the lower end of its previous 10% to 15% growth forecast.
However, TPXimpact does expect an improvement in adjusted earnings before interest, tax, depreciation and amortisation for financial 2025, with adjusted Ebitda margins improving on-year by between 1% and 2%.
For financial 2026 it expects on-year adjusted Ebitda margin progression of between 1% and 3%, although "the 1% headwind of increased employer national insurance contribution rates may lead us to the lower end of this range".
"Whilst short-term market conditions remain challenging for our Digital Transformation business," Chief Executive Officer Bjorn Conway commented, "we have a strong pipeline of opportunities and remain confident in the government's commitment to improve public services and drive efficiencies through digital transformation and harnessing the potential of AI.
The Digital Transformation business, and the group overall, remains well positioned for growth as government's spending plans begin to take shape."
By Emma Curzon, Alliance News reporter
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