TPXimpact Holdings PLC on Monday reported a strong trading performance in its first half year with a ‘robust’ pipeline, although it has sold TPXimpact Norway partially due to a lack of scale.

The IT consulting firm said trading in the first six months of the year ending on March 31 was ‘encouraging and in line with management expectations’.

TPXimpact added that it expects to report revenue between £41 million and £42 million. In like for like terms, excluding TPXimpact Norway and the Questers business sold last month, this would equate to growth of around 20% from the £40.4 million delivered the prior year.

The firm expects adjusted earnings before interest, tax, depreciation and amortisation margins to increase to between 4% and 5% from less than 3%.

New business wins during the period amounted to £105 million, and TPXimpact said the pipeline ‘remains robust’. Net debt reduced to around £13 million at September 30 from £17.9 million at June 30.

Chief Executive Officer Bjorn Conway commented: ‘I am pleased by the progress we have made...Trading has improved and we are beginning to achieve efficiencies across the group and capitalise on the sizeable market opportunity available to the group.’

Also on Monday, TPXimpact announced the disposal of its Norway business to ARygh Holding AS, Produco Invest 1 AS and T5 Invest AS. All companies are controlled by managing partners of TPXimpact Norway.

TPXimpact said the business’s lack of scale introduced elevated risk in the event of losing key staff or clients, which among other factors made it unlikely to contribute to group revenue growth and margin improvement targets.

Conway said the disposal was ‘firmly aligned with our strategic vision for TPXimpact by enabling us to concentrate our resources and energies...within the UK public sector and broader digital transformation market, where there is considerable scope for further growth.’

Going forward, TPXimpact reaffirmed its targets of 15% to 20% LFL revenue growth for the current financial year, which would equate to revenue between £80 million and £85 million, and growth of 10% to 15% the year after. It expects net debt between £11 million and £12 million at March 31.

Shares in TPXimpact were up 0.5% at 39.20 pence in London on Monday.

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