REG - TPXimpact Holdings - Update on financing arrangements

Tpximpact HoldingsAnnouncement

24/06/2024 07:00

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RNS Number : 4840T  TPXimpact Holdings PLC  24 June 2024

24 June 2024

TPXimpact Holdings PLC

("TPX", or the "Group", or the "Company")

Update on financing arrangements

 

The Board of TPXimpact Holdings plc is pleased to provide an update on the
Company's financing arrangements.

As previously announced, net debt (excluding lease liabilities) at 31 March
2024 was just over £7 million, the lowest level in over three years. Gross
borrowings under the Revolving Credit Facility ("RCF") at the same date were
£16.2 million and have since reduced to £12.2 million, compared with £24.5
million a year ago, a 50% reduction.

Given the significant improvement in the Group's debt position, the Board and
the Company's bankers have agreed to extend the maturity of the RCF by one
year to July 2026 while reducing the amount of the facility from £30 million
to £25 million effective from 21 June 2024 to better reflect the ongoing
needs of the business. The accordion of £15 million will continue to be
available, if required.

In addition, the borrowing conditions ("covenants") of the RCF have been
eased, one quarter ahead of schedule. These covenants now comprise two
measures, to be assessed at each quarter end: (i) a leverage ratio(1) of no
more than 2.5x; and (ii) an interest cover ratio(2) of no less than 3.0x for
the periods ending 30 September and 31 December 2024 and 3.5x for the year to
31 March 2025 and thereafter.

 

Steve Winters, Group CFO, commented:

"We have made significant progress in reducing debt over the last twelve
months. The favourable amendments to our financing arrangements announced
today represent a return to a more normal framework for debt and cash
management and will allow us greater freedom to manage and invest in the
business effectively.

"With a strong balance sheet, we continue to be well-positioned to achieve our
targets for top-line growth and margin improvement, in line with our
three-year plan, as well as manage interest costs more efficiently."

 

(1)Leverage ratio: net debt (excluding lease liabilities) to rolling 12M
Adjusted EBITDA

(2)Interest cover ratio: rolling 12M Adjusted EBITDA/net finance costs

 

This announcement contains inside information under the UK Market Abuse
Regulation. The person responsible for arranging for the release of this
announcement on behalf of the Company is Steve Winters, CFO.

 

 

Enquiries:

 TPXimpact Holdings

 Bjorn Conway, CEO                  Via Alma Strategic

 Steve Winters, CFO

  Stifel Nicolaus Europe Limited    +44 (0) 207 710 7600

 (Nomad and Joint Broker)

 Fred Walsh

 Ben Good

 Sarah Wong

 Dowgate Capital Limited

 (Joint Broker)                     +44 (0) 203 903 7715

 James Serjeant

 Russell Cook

 Alma Strategic Communications      tpx@almastrategic.com

 (Financial PR)                     +44 (0) 203 405 0209

 Josh Royston

 Kieran Breheny

 

 About TPXimpact

We believe in a world enriched by people-powered digital transformation.
Working in collaboration with organisations, we're on a mission to accelerate
positive change and build a future where people, places and the planet are
supported to thrive.

Led by passionate people, TPXimpact works closely with its clients in agile,
multidisciplinary teams; challenging assumptions, testing new approaches and
building confidence and capabilities. Combining our rich heritage with
expertise in human-centred design, data, experience and technology, we work to
create sustainable solutions with the flexibility to learn, evolve and change.

The business is being increasingly recognised as a leading alternative digital
transformation provider to the UK public services sector, with over 90% of its
client base representing public services.

More information is available at www.tpximpact.com.

 

 

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