TPXimpact Holdings PLC (AIM:TPX) shares jumped 14.5% to 47.50p after the digital transformation consultancy said trading for the past quarter was at the higher end of previous forecasts and raised its guidance for the year ahead.
For the year to end-March 2023, it expects revenue to be around £83mln compared to £40.4mln the year before, with an underlying earnings (adjusted EBITDA) margin remaining at roughly 3%.
New business generation totalled £36mln in the fourth quarter and the company said “momentum has continued into the new financial year” with April a record month, including a £49mln, four-year contract win with the Land Registry and a £28mln two-year win with the Department for Education.
With committed revenues for the year to March 2024 currently around £80mln compared to £41mln a year ago, the guidance on organic revenue growth has been lifted to 15-20% from 10-15% previously, with an improved adjusted EBITDA margin of 5-6%.
Talks with lenders were said to be ongoing as management “continue to engage positively” after the group's debt covenant tests were waived at the end of March.