GCITPXimpact wins £19m Government contract, maintains full-year guidance amid strong H1 performance
() , a digital transformation services company, announced a major 3-year £19m contract with the Ministry for Housing, Communities and Local Government (MHCLG). The contract will see support the delivery of the Ministry's digital reform programme to modernise its planning systems across England.
"A future state of data-driven, standards-based systems will be more efficient and robust, whilst making it easier for citizens and communities to engage in planning and development. This initiative is well-aligned with the Government's mission to promote sustainable economic growth and the cost-effective delivery of new housing to meet urgent national demand." said in a statement.
The MHCLG contract will further accelerate 's pipeline to £24m already won in Q3, compared to £26m for all of Q2 and £9m for Q1. Sales momentum is strong into year-end, while simultaneously net debt down is down from £12.8m in 1H24 to less than £8m on September 30, 2024, yielding a much improved leverage ratio of c. 1.6x.
remains on a long-term growth trajectory, attested by its improved profitability in 1H25 in spite of top-line challenges. While the group projects flat revenue growth for FY25 with an adjusted EBITDA target of £7-8m in line with consensus, for FY26 is bullish on LFL growth targeted at 10-15% with an adjusted EBITDA margin of 10-12% compared to only 5.5% in FY24.
Moreover, there is good visibility for 2H and beyond with regards to further Government contracts as the UK public sector continues to spend steadily on digital transformation initiatives, reiterated again during the recent Chancellor's Budget. TPX is well-positioned to increase its involvement in such programmes as they materialise.
Björn Conway, CEO, commenting: "I am especially pleased to announce the Ministry for Housing, Communities and Local Government (MHCLG) win which exemplifies the strength and depth of our expertise in digital transformation capabilities and, in particular, planning reform. This award of up to £19 million builds on the success of our existing two-year partnership with MHCLG where we have demonstrated our ability to deliver tangible outcomes that align with the government's evolving policy agenda."
shares jumped 19% on the announcement.
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