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TPXimpact reports solid fourth-quarter trading

(Sharecast News) - TPXimpact reported solid trading in the fourth quarter of its financial year ended 31 March on Wednesday, with full-year results expected to align with guidance and adjusted EBITDA forecast at the top end of its targeted margin growth range. The AIM-traded technology-enabled services firm said operational improvements and disciplined cost management contributed to stronger profitability and a reduction in net debt to £8.5m, placing it comfortably within covenant limits.

Revenue for the financial year was expected to have declined between 8% and 10%, reflecting the impact of the UK's political and fiscal environment, including general election uncertainty, spending constraints, and departmental restructuring.

TPXimpact also announced two major government contract wins, including a £7m two-year deal with the Department for Business and Trade, and a £9m 12-month contract with His Majesty's Prison & Probation Service, with potential to extend.

Looking ahead, the group said it was cautiously optimistic for the 2026 financial year, forecasting adjusted EBITDA of £6m to £7m as operational efficiencies translated into stronger profitability.

Net debt was expected to fall further to £7 to £8m, with leverage declining to around 1x to 1.5x EBITDA.

"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," said chief executive officer Bjorn Conway.

"TPXimpact completes the 2025 financial year as a more effective and more resilient business, as demonstrated by the delivery of increased adjusted EBITDA margins despite reduced revenues."

Conway said the mid-term prospects for TPXimpact remained strong, noting its "deep, long-lasting" client relationships, "clear" strategy and "in-demand" digital capabilities.

"TPXimpact is well-positioned to support its clients and deliver increased value in the year ahead."

The company said it would publish its preliminary results for the 2025 financial year in June.

At 1035 BST, shares in TPXimpact Holdings were up 4.12% at 24.99p.

Reporting by Josh White for Sharecast.com.

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