TPXimpact Holdings PLC (TPX) AI Stock Analysis

• Market Cap: £21.20M
• Dividend Yield: N/A
• Average Volume (3M): 41.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: -5.32%
• EPS Growth: 36.28%
• Country: UK
• Employees: 510
• Sector: Technology
• Sector Strength: 77
• Industry: Information Technology Services
• EPS (TTM): -0.18
• Shares Outstanding: 92,159,550
• 10 Day Avg. Volume: 90,222
• 30 Day Avg. Volume: 41,561
• PEG Ratio: -0.11
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £66.00
• Price Target Upside: 186.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: ―

TPXimpact Holdings PLC faces significant challenges with profitability and valuation, marked by ongoing net losses and a negative P/E ratio. However, the company exhibits strengths in cash flow improvements and a stable balance sheet. Positive corporate actions, like the Share Incentive Plan and new CFO appointment, offer potential for recovery and stability.

Positive Factors

Government Contracts

TPXimpact is well positioned to benefit from UK government digital transformation plans once budgets/spending commence.

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 and Spending 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 Business Overview & Revenue Model

Company Description

TPXimpact Holdings PLC, together with its subsidiaries, provides digital native technology services in the United Kingdom, Bulgaria, Switzerland, the United States of America, Norway, and internationally. It operates through three segments: Consulting and Innovation, Software Development, and Automation. The company provides service and UX design, digital design and build, content and campaign management, and user and audience research services. It also offers XaaS services, such as cloud management, talent as a service, agile management, and distributed software development. In addition, the company provides automation services comprising RPA implementation, chatbots and voice interfaces, and Devops. Further, it offers analytics, reporting and BI machine, API design and development, and business and data insight services. Additionally, the company provides strategic and management consultancy, digital service consultancy, and software development services. It serves commercial, government, and non-government sectors. The company was formerly known as The Panoply Holdings plc and changed its name to TPXimpact Holdings PLC in September 2021. TPXimpact Holdings PLC was incorporated in 2016 and is based in London, the United Kingdom.

How the Company Makes Money

TPXimpact 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

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

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

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 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
84.27M	83.68M	79.71M	51.10M	31.53M
	Gross Profit
21.18M	20.91M	24.37M	16.13M	12.01M
	EBIT
-22.80M	-19.36M	5.58M	-1.54M	-2.96M
	EBITDA
-14.19M	-11.98M	9.14M	1.99M	-631.00K
	Net Income Common Stockholders
-20.37M	-19.00M	2.50M	-2.23M	-3.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.93M	6.77M	7.91M	5.73M	4.61M
	Total Assets
82.94M	115.12M	125.67M	104.47M	60.42M
	Total Debt
17.77M	25.79M	19.31M	13.44M	6.03M
	Net Debt
8.84M	19.02M	11.40M	7.71M	1.41M
	Total Liabilities
35.11M	48.44M	46.99M	43.82M	33.16M
	Stockholders Equity
47.84M	66.69M	78.68M	60.65M	27.27M
Cash Flow		Free Cash Flow
7.33M	-2.37M	6.14M	5.18M	2.38M
	Operating Cash Flow
7.54M	-1.79M	6.68M	5.64M	2.71M
	Investing Cash Flow
5.88M	-2.68M	-8.01M	-11.53M	-7.28M
	Financing Cash Flow
-11.23M	3.35M	3.69M	6.92M	3.54M

TPXimpact Holdings PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 23 is above the 20-day moving average (MA) of 22.23, above the 50-day MA of 21.26, and below the 200-day MA of 32.46, indicating a neutral trend. The MACD of 0.76 indicates Negative momentum. The RSI at 56.22 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%
TPX	50 Neutral	£21.20M	―	-30.86%	―	-5.32%	36.28%
TIA		£19.75M	―	-60.02%	―	―	―
RCN	57 Neutral	£204.50M	329.49	1.06%	2.81%	3.57%	―
MTEC	52 Neutral	£41.80M	―	-8.80%	―	6.21%	17.82%
KBT	50 Neutral	£41.56M	78.15	-8.92%	―	-46.97%	―
TRD	48 Neutral	£50.52M	63.32	20.93%	2.07%	26.44%	―

TPXimpact Holdings PLC Corporate Events

TPXimpact Announces Resignation of Non-Executive Director Neal Gandhi

TPXimpact Holdings PLC announced the resignation of Neal Gandhi as a non-executive director, effective immediately. His departure follows a two-and-a-half-year tenure in the role, during which he contributed significantly to the company’s strategic direction after serving as CEO. This change in the board’s composition may influence the company’s future governance and strategic decisions.

Spark’s Take on GB:TPX Stock

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

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.

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

TPXimpact Enhances Employee Incentives with Share Acquisition

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.

TPXimpact Boosts Employee Engagement with Share Incentive Plan

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.

TPXimpact Holdings PLC Announces Change of Registered Office Address

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.

TPXimpact Holdings Boosts Employee Engagement with Share Incentive Plan

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.

TPXimpact Holdings PLC Reports Q3 Success Amid Market Challenges

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.

TPXimpact Holdings Reports Q3 Results, Adjusts FY25 Outlook Amid Market Challenges

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.