Highlights

• TPXimpact grew first-half Revenue 60% to £57.9m as new Business wins nearly tripled to £86m.

• Adjusted EBITDA rose 152% to £8.0m, lifting the Margin to 13.9% from 8.8% a year earlier.

• The company repaid £4.0m of borrowings and ended September with net cash of £1.0m, excluding leases.

• Management reaffirmed upgraded guidance of at least £105m revenue and £14m adjusted EBITDA for FY27.

From prisons and probation to land registration, central government departments have been handing out sizeable digital contracts, and one London-listed supplier has been collecting a healthy share. TPXimpact (LSE:TPX), a digital transformation partner whose client base is more than 90% public services, reported unaudited results for the six months to 30 September 2026 that put revenue up 60% and turned an operating loss into a profit. With guidance reaffirmed and October trading described as positive, the AIM stock has given UK shares watchers plenty to digest.

TPXimpact interim results at a glance

TPXimpact (LSE:TPX) reported revenue of £57.9m, against £36.2m in the first half of the prior year. Adjusted EBITDA rose 152% to £8.0m, with the margin widening to 13.9% from 8.8%. Reported operating profit was £3.5m, compared with a £1.1m loss, and adjusted Diluted Earnings per Share rose to 5.6p from 1.7p.

Gross margin slipped to 30.0% from 31.0%, which the company attributed partly to greater use of contractors while mobilising quickly for large engagements.

Central government wins drive the order book

New business wins totalled £86m, compared with £31m. The largest included £25m with HM Prison & Probation Service, £19m with HM Land Registry and £16m with the Ministry of Justice. A £5m win with the British Library and about £21m from smaller wins and extensions completed the tally.

Chief Executive Bjorn Conway linked the first-half growth to client trust in the business, and pointed to "the benefits of a streamlined business and improved client account management."

Headcount, including associates, rose 15% to 806, while permanent employees climbed 22% to 508. Retention improved to 86%.

Cash generation and a healthier balance sheet

Operating cash flow was £6.2m, up from £2.5m. The group fully repaid £4.0m of borrowings during the half and moved to net cash, excluding leases, of £1.0m, from net Debt of £4.2m at 31 March 2026. No Interim Dividend was mentioned, but the board plans to review its Capital allocation policy as cash reserves build through the second half and into the next financial year.

Concentration and delivery risks

About 94% of revenue comes from public sector clients and roughly 70% from central government, leaving the business exposed to government budgets. Teams are scaling quickly for large contracts, including work with NHS England and Defra, and the company stressed the need to embed new teams well. Trade and other receivables rose to £11.6m from £9.2m, and the tax line moved from a £0.3m Credit to a £0.7m charge.

Guidance holds after a positive October

TPXimpact (LSE:TPX) reaffirmed the upgraded guidance from its 15 October 2026 trading update: revenue of at least £105m and adjusted EBITDA of at least £14m for the year to 31 March 2027. By calculation, first-half revenue represents about 55% of that revenue floor. "We are confident in the prospects for the Group," Conway said.