No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - TPXimpact Holdings said on Wednesday that it expects to report results comfortably ahead of upgraded guidance for the year ended 31 March, following a strong final quarter that capped the completion of its three-year turnaround.
The AIM-traded group said it anticipated revenue of around 78.1m, up 1% year-on-year and ahead of market expectations of 76.2m.
Gross margin was expected to improve to 31.7% from 28.6%, driven by a better project mix and operational efficiencies.
Adjusted EBITDA was forecast to rise 54% to about 8.6m from 5.6m, with the margin increasing to 11.0% from 7.3%, supported by higher gross margins and tighter control of discretionary costs and overheads.
The company also reported a significant improvement in its balance sheet, with net debt reduced to around 4.2m from 8.5m a year earlier, reflecting strong cash generation.
Leverage fell to 0.5 times net debt to EBITDA, compared with 1.5 times previously.
TPXimpact said the performance marked the successful conclusion of its three-year strategic turnaround, leaving the business more profitable, cash-generative and financially stable.
It added that it was now entering a new three-year phase focused on sustainable growth, supported by 122m of new business wins and the recent appointment of a chief growth officer.
"I am delighted by the performance of the business during the last financial year, which provides a positive conclusion to our three-year turnaround plan," said chief executive Bjorn Conway.
"We have successfully reshaped the business into a more profitable, resilient and cash-generative organisation.
"With adjusted EBITDA margin now at 11.0% and leverage down to 0.5x, we have a very stable base on which to grow as we move into the 2027 financial year."
The company said it would publish its preliminary full-year results on 16 June, alongside an initial outlook for the new financial year.
At 1554 BST, shares in TPXimpact Holdings were up 12./43% at 41.6p.
Reporting by Josh White for Sharecast.com.
See latest RNS on Investegate