TPXimpact Holdings PLC (AIM:TPX) shares shot up 20% in Wednesday's trade, to change hands at 44.49p, after it told investors it expects to beat recently upgraded market forecasts across all key FY26 metrics, capping a three-year turnaround with stronger margins, lower debt and improved cash generation.
The digital transformation group expects to report revenue of about £78.1 million for the year to 31 March 2026, up 1% from £77.3 million a year earlier and ahead of £76.2 million market consensus. Gross margin is seen improving to 31.7% from 28.6%, while adjusted EBITDA is expected to jump 54% to around £8.6 million, pushing EBITDA margin up to 11.0% from 7.3%.
TPXimpact also said its balance sheet strengthened materially over the year. Net debt is expected to narrow to about £4.2 million from £8.5 million, while leverage is set to fall to 0.5x from 1.5x. Chief executive Bjorn Conway said the business had been reshaped into a “more profitable, resilient and cash-generative organisation”.
The company said FY26 marked the successful end of its three-year strategic turnaround and that it is now moving into a new three-year growth phase, supported by £122 million of new business wins and the recent appointment of Emma Broom as chief growth officer.