TPXimpact Holdings plc (LON:TPX) was discussed by Miton UK MicroCap Trust plc (LON:MINI) Co-Fund Manager Gervais Williams in a wide-ranging exclusive interview about the Trust and some of its portfolio holdings.
DirectorsTalk asked:
TPXimpact Holdings plc has seen their share price rise over 30% in a year*. What’s behind the company’s success?
* Share price rose from 35 GBX on 7/7/23 to 53.5 GBX over a year later on 18/7/24.
Gervais Williams commented:
What we’ve got is quite a lot of micro-caps here, which are, in many cases, somewhat overlooked. That’s partly because, they’re not growing particularly well, or they’ve had some problems, and TPXimpact Holdings is one of those where a simplified and reinvigorated management team have really delivered a step change in terms of the culture of the business.
Basically, it’s aiming to do what it calls people-powered transformation. That’s really allowing organisations, particularly government offices, to get motivation of staff and enthusiasm and all that rebuilt, and it’s got some very good businesses. It’s a B Corp at its heart, which is obviously very aligned with their customer base but most particularly, it’s got a very strong pipeline of new opportunities. I think it booked something like £140 million of business last year, it does have some net debt, which has come down very hard, it’s down to about £7.5 million this year.
Most particularly, you’re going to see its sales come through, its profits come through so although its PE ratio might be, according to Bloomberg, something like 12.4 times this year, actually for the year to March ‘25, it might be as low as 7.5.
TPXimpact Holdings PLC help public, private and third-sector organisations with their digital transformation journey to build a better future for people, places and the planet.
