TPXimpact Holdings PLC on Thursday said its loss narrowed in the first half of its current financial year despite a decline in revenue, as a result of reduced expenses.
The London-based technology-enabled services company focused on digital transformation said its pretax loss in the six months that ended September 30 narrowed to £4.1 million from £10.1 million the year before.
This was primarily due to cost of sales reducing 12% to £27.1 million from £30.7 million, while administrative expenses decreased 32% to £14.4 million from £19.9 million. Finance costs were also down 46% to £687,000 from £1.1 million.
Revenue, however, fell 9.6% to £37.8 million from £41.6 million last year.
Adjusted earnings before interest, tax, depreciation and amortisation rose 14% year-on-year to £2.3 million from £2.0 million.
Chief Executive Officer Bjorn Conway said: ‘The company has shown remarkable resilience in the first half of the financial year. Despite revenue headwinds in our core client sector of central government, all key profitability metrics showed improvement and growth.
‘We welcomed the improved visibility evident from the Chancellor’s budget announcement on October 30 in relation to central government spending plans for the next financial year, which we expect to result in an uplift in activity in the second half. The increased momentum in new business wins, together with the steps we have taken to improve and simplify the business, provide a solid foundation for achieving our financial targets for the second half of the year and beyond.
‘As we commence our planning process for the next financial year, we remain confident in the continued execution of our three-year strategic plan and cautiously optimistic that more favourable market condition will prevail.’
TPXimpact said its full-year targets remained unchanged. The group forecast flat revenue growth for the year and adjusted Ebitda between £7 and £8 million, which would be between a 41% and 54% growth from £4.6 million the year before.
Shares in TPXimpact were down 6.8% at 37.29 pence each in London on Thursday morning.
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