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TPXimpact Holdings PLC (GB:TPX)
LSE:TPX

TPXimpact Holdings PLC (TPX) AI Stock Analysis

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GB

TPXimpact Holdings PLC

(LSE:TPX)

49Neutral
TPXimpact Holdings PLC's overall stock score reflects significant operational challenges, including ongoing net losses and negative technical indicators. However, improving cash flows and positive corporate actions such as strategic leadership changes and employee incentive initiatives provide some optimism for recovery and stability.
Positive Factors
Government contracts
TPXimpact's trading update is in line with expectations and comes with the announcement of a 3-year £19m contract with the Ministry for Housing, Communities and Local Government.
New business acquisition
In the third quarter, TPX won £30m of new business, which is a healthy amount given it constitutes almost 40% of FY25E revenue.
Negative Factors
Procurement challenges
The company reports that although it had expected a return to normal trading conditions, it hasn't materialised as anticipated due to procurement delays and spending controls.
Project delays
Q4 has seen delays in its Digital Transformation projects, affecting expected revenue growth.

TPXimpact Holdings PLC (TPX) vs. S&P 500 (SPY)

TPXimpact Holdings PLC Business Overview & Revenue Model

Company DescriptionTPXimpact Holdings PLC (TPX) is a digital transformation services company headquartered in the United Kingdom. The company operates across various sectors, including public, private, and third sectors, providing expertise in digital strategy, service design, data and analytics, and software development. TPXimpact aims to deliver impactful solutions that drive efficiency and improve user experiences for its clients.
How the Company Makes MoneyTPXimpact Holdings PLC generates revenue primarily through the provision of digital transformation services. Its key revenue streams include consulting fees for strategic digital advisory services, project-based fees for implementing digital solutions, and ongoing support and maintenance contracts. The company collaborates with a range of clients in the public, private, and third sectors, leveraging its expertise to improve operational efficiencies and service delivery. Additionally, TPXimpact may engage in strategic partnerships to enhance its service offerings and expand its market reach, contributing to its earnings.

TPXimpact Holdings PLC Financial Statement Overview

Summary
TPXimpact Holdings PLC shows steady revenue growth but is facing profitability challenges with negative margins and net losses. The balance sheet is moderately stable with reasonable leverage, and cash flows show improvement, indicating potential for recovery.
Income Statement
45
Neutral
TPXimpact Holdings PLC has experienced revenue growth over the years, achieving a Revenue Growth Rate of approximately 0.7% from 2023 to 2024. However, the company is facing profitability challenges with negative EBIT and EBITDA margins, and a Net Profit Margin of -24.2% in 2024, indicating ongoing operational difficulties.
Balance Sheet
50
Neutral
The balance sheet reflects a moderate financial position with a Debt-to-Equity Ratio of 0.37, suggesting reasonable leverage. The Equity Ratio stands at 57.7%, indicating a stable equity base. However, the declining stockholders' equity over the years may pose future risks.
Cash Flow
60
Neutral
The cash flow statement shows improvement with a positive Free Cash Flow Growth Rate and an Operating Cash Flow to Net Income Ratio of -0.37 in 2024, suggesting better cash generation relative to earnings despite negative net income. This highlights a potential for operational cash flow recovery.
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
84.27M83.68M79.71M51.10M31.53M
Gross Profit
21.18M20.91M24.37M16.13M12.01M
EBIT
-22.80M-19.36M5.58M-1.54M-2.96M
EBITDA
-14.19M-11.98M9.14M1.99M-631.00K
Net Income Common Stockholders
-20.37M-19.00M2.50M-2.23M-3.04M
Balance SheetCash, Cash Equivalents and Short-Term Investments
8.93M6.77M7.91M5.73M4.61M
Total Assets
82.94M115.12M125.67M104.47M60.42M
Total Debt
17.77M25.79M19.31M13.44M6.03M
Net Debt
8.84M19.02M11.40M7.71M1.41M
Total Liabilities
35.11M48.44M46.99M43.82M33.16M
Stockholders Equity
47.84M66.69M78.68M60.65M27.27M
Cash FlowFree Cash Flow
7.33M-2.37M6.14M5.18M2.38M
Operating Cash Flow
7.54M-1.79M6.68M5.64M2.71M
Investing Cash Flow
5.88M-2.68M-8.01M-11.53M-7.28M
Financing Cash Flow
-11.23M3.35M3.69M6.92M3.54M

TPXimpact Holdings PLC Technical Analysis

Technical Analysis Sentiment
Negative
Last Price19.00
Price Trends
50DMA
23.04
Negative
100DMA
31.30
Negative
200DMA
35.52
Negative
Market Momentum
MACD
-1.38
Negative
RSI
2.47
Positive
STOCH
57.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TPX, the sentiment is Negative. The current price of 19 is below the 20-day moving average (MA) of 20.27, below the 50-day MA of 23.04, and below the 200-day MA of 35.52, indicating a bearish trend. The MACD of -1.38 indicates Negative momentum. The RSI at 2.47 is Positive, neither overbought nor oversold. The STOCH value of 57.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TPX.

TPXimpact Holdings PLC Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBCCC
76
Outperform
£2.38B14.7319.50%3.11%0.61%-9.17%
GBFDM
64
Neutral
£243.46M11.8728.48%13.00%-22.84%-49.60%
58
Neutral
$10.03B10.00-6.85%3.09%7.49%-11.58%
GBTPX
49
Neutral
£17.51M-30.86%-5.32%36.28%
GBSYN
46
Neutral
£2.96M0.4856.96%-55.66%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:TPX
TPXimpact Holdings PLC
19.00
-14.00
-42.42%
GB:CCC
Computacenter
2,274.00
-217.00
-8.71%
GB:SYN
Oilex Ltd
0.02
-0.09
-81.82%
GB:FDM
FDM Group (Holdings)
223.00
-84.19
-27.41%

TPXimpact Holdings PLC Corporate Events

Business Operations and Strategy
TPXimpact Enhances Employee Incentives with Share Acquisition
Positive
Apr 11, 2025

TPXimpact Holdings PLC announced the acquisition of 34,524 shares by the SIP Trustees for its Share Incentive Plan, aimed at rewarding and incentivizing employees through tax-efficient salary sacrifice and matching awards. This initiative reflects the company’s commitment to employee engagement and aligns with its strategic focus on fostering a motivated workforce, potentially enhancing its position in the digital transformation industry.

Spark’s Take on GB:TPX Stock

According to Spark, TipRanks’ AI Analyst, GB:TPX is a Neutral.

The overall stock score reflects a company facing operational challenges with ongoing net losses and negative technical indicators. However, it shows potential for recovery with improving cash flows and positive corporate actions. The strategic appointment of a new CFO and employee engagement initiatives are steps towards stabilizing and enhancing future performance.

To see Spark’s full report on GB:TPX stock, click here.

Business Operations and Strategy
TPXimpact Boosts Employee Engagement with Share Incentive Plan
Positive
Mar 12, 2025

TPXimpact Holdings PLC announced the acquisition of 30,648 shares by its SIP Trustees to incentivize employees through its Share Incentive Plan. This initiative reflects the company’s commitment to rewarding its workforce and enhancing employee engagement, potentially strengthening its position as a leading digital transformation provider in the UK public services sector.

Business Operations and Strategy
TPXimpact Holdings PLC Announces Change of Registered Office Address
Neutral
Feb 28, 2025

TPXimpact Holdings PLC has announced a change in its registered office address to 2 Whitechapel Road, 2nd Floor, The Hickman, London, effective from 3 March 2025. This move reflects the company’s ongoing commitment to its operations and presence in the UK public services sector, where it is increasingly recognized as a leading provider of digital transformation solutions.

Business Operations and Strategy
TPXimpact Holdings Boosts Employee Engagement with Share Incentive Plan
Positive
Feb 12, 2025

TPXimpact Holdings PLC announced the acquisition and allocation of 27,869 shares under its Share Incentive Plan (SIP) to reward and incentivize its employees. The shares, acquired at a total cost of £7,524.63, were allocated through a tax-efficient salary sacrifice scheme, with matching shares transferred from the company’s Employee Benefit Trust. This initiative is aimed at enhancing employee engagement and retention, aligning with the company’s commitment to fostering a collaborative and innovative work environment.

Business Operations and StrategyFinancial Disclosures
TPXimpact Holdings PLC Reports Q3 Success Amid Market Challenges
Neutral
Feb 6, 2025

TPXimpact Holdings PLC reported that their Q3 trading met expectations with significant new business secured. However, the Digital Transformation business faces challenges due to macroeconomic conditions and government budgetary issues, resulting in delayed procurement and slower business ramp-up. Despite expecting an 8-10% revenue decline for FY25, the company’s reorganization efforts are projected to improve EBITDA margins. The company remains optimistic about FY26, expecting revenue growth and improved margins as market conditions normalize, and continues to align its strategy with the government’s digital transformation agenda.

Business Operations and StrategyFinancial Disclosures
TPXimpact Holdings Reports Q3 Results, Adjusts FY25 Outlook Amid Market Challenges
Neutral
Feb 6, 2025

TPXimpact Holdings PLC reported that its Q3 trading results met expectations, with profitability and margins in line with forecasts. However, the Digital Transformation business faces challenges due to delayed procurement and spending controls, impacting Q4 expectations. Despite a projected revenue decline of 8-10% for FY25, adjusted EBITDA margins are expected to improve. The company anticipates market conditions to normalize by FY26, with potential revenue growth and continued margin improvement. TPXimpact remains confident in its strategic direction, supported by a strong pipeline and government commitment to digital transformation.

Executive/Board Changes
TPXimpact Holdings PLC Confirms New CFO Appointment
Positive
Feb 3, 2025

TPXimpact Holdings PLC has confirmed the appointment of Noel Douglas as its new Chief Financial Officer and Company Secretary, effective immediately. This strategic appointment is expected to enhance the company’s financial and operational excellence, supporting its growth and value enhancement objectives.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.