TPXimpact Holdings PLC (TPX) AI Stock Analysis

• Market Cap: £16.08M
• Dividend Yield: N/A
• Average Volume (3M): 66.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• Revenue Growth: -8.22%
• EPS Growth: 61.58%
• Country: UK
• Employees: 510
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.07
• Shares Outstanding: 92,972,860
• 10 Day Avg. Volume: 52,535
• 30 Day Avg. Volume: 66,538
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £71.00
• Price Target Upside: 311.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: 16.00p ▼(-7.25% Downside)

TPXimpact Holdings PLC's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The negative P/E ratio and lack of dividend yield further contribute to the low valuation score, making the stock unattractive for investors seeking growth or income.

Positive Factors

Partnerships with Major Tech Providers

These partnerships enhance TPX's service offerings and lead to joint projects, strengthening its market position and revenue potential.

Recurring Revenue Streams

Recurring revenue provides a stable income base, reducing volatility and supporting long-term financial health through predictable cash flows.

Focus on Public Sector Contracts

Long-term public sector contracts ensure steady revenue and enhance TPX's credibility and stability in the market.

Negative Factors

Declining Revenue Growth

Negative revenue growth indicates challenges in market expansion and client acquisition, potentially impacting future profitability and market share.

Weak Cash Flow Generation

Weak cash flow generation limits the company's ability to invest in growth opportunities and meet financial obligations, posing risks to long-term sustainability.

Persistent Losses

Consistent losses undermine financial stability and can erode investor confidence, making it difficult to fund future growth initiatives.

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 generates revenue primarily through its consulting and technology services. The company operates on a project-based revenue model, where it charges clients for specific projects related to digital transformation initiatives. Key revenue streams include consulting fees for strategic advice, recurring revenue from software solutions and cloud services, and income from long-term contracts with public sector clients. Additionally, TPX has established significant partnerships with major technology providers, which not only enhances its service offerings but also leads to joint projects that contribute to its earnings. The company's focus on delivering measurable outcomes for clients strengthens its value proposition and encourages repeat business, further solidifying its revenue base.

TPXimpact Holdings PLC Financial Statement Overview

Summary

TPXimpact Holdings PLC faces significant financial challenges, with declining revenues, persistent losses, and weak cash flow generation. Despite a moderate debt-to-equity ratio, the negative returns and cash flow issues pose risks to financial stability and future growth.

Income Statement

TPXimpact Holdings PLC has experienced declining revenue growth and profitability over recent years. The revenue growth rate has turned negative, and the company has reported negative net income and EBIT margins, indicating operational challenges. Despite a positive gross profit margin, the overall financial performance is weak due to consistent losses.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, which suggests a manageable level of leverage. However, the negative return on equity indicates that the company is not generating sufficient returns on shareholders' investments. The equity ratio is stable, reflecting a reasonable proportion of equity financing.

Cash Flow

Cash flow performance is concerning, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is low, indicating challenges in converting earnings into cash. The free cash flow to net income ratio is also weak, highlighting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.34M	77.34M	84.27M	83.68M	79.71M	51.10M
Gross Profit	22.13M	22.13M	21.18M	20.91M	24.37M	16.13M
EBITDA	-2.27M	-2.27M	-14.19M	-11.98M	9.14M	1.99M
Net Income	-9.15M	-9.15M	-20.37M	-19.00M	2.50M	-2.23M
Balance Sheet
Total Assets	66.89M	66.89M	82.94M	115.12M	125.67M	104.47M
Cash, Cash Equivalents and Short-Term Investments	4.65M	4.65M	8.88M	6.77M	7.91M	5.73M
Total Debt	14.47M	14.47M	17.77M	25.79M	19.31M	13.44M
Total Liabilities	27.56M	27.56M	35.11M	48.44M	46.99M	43.82M
Stockholders Equity	39.33M	39.33M	47.84M	66.69M	78.68M	60.65M
Cash Flow
Free Cash Flow	417.00K	1.43M	7.33M	-2.37M	6.14M	5.18M
Operating Cash Flow	417.00K	1.43M	7.54M	-1.79M	6.68M	5.64M
Investing Cash Flow	0.00	89.00K	5.88M	-2.68M	-8.01M	-11.53M
Financing Cash Flow	-4.70M	-5.81M	-11.23M	3.35M	3.69M	6.92M

TPXimpact Holdings PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 17.25 is above the 20-day moving average (MA) of 17.24, below the 50-day MA of 18.74, and below the 200-day MA of 24.74, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 35.20 is Neutral, neither overbought nor oversold. The STOCH value of 57.18 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRD	67 Neutral	54.35M	31.42	35.69%	1.92%	52.51%	―
RCN	57 Neutral	219.48M	64.32	―	2.61%	-17.17%	―
MTEC	52 Neutral	52.25M	37.63	―	―	20.40%	―
TIA	50 Neutral	16.98M	-4.82	-78.67%	―	-12.11%	-106.04%
TPX	41 Neutral	£16.08M	―	-21.01%	―	-8.22%	61.58%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.