Tpximpact Holdings (LSE:TPX) — Preliminary Results

0:00 Good afternoon, and welcome to the TPXIMPACT HOLDINGS PLC Full Year Results Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and they can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Just simply type in your questions and press send. Before we begin, I would like to submit the following poll. And I would now like to hand you over to CEO, Pion Conway. Good afternoon to you.

0:26 Good afternoon, and good afternoon, everybody, and thank you very much for joining this call. My name is Conway. I'm chief executive at TPXIMPACT. I've been here for about three years. My sort of background before that was running the public sector team with which I doubled over a six year period. And prior to that, I was a a partner of PA specializing in business transformation. So this sort of business is very much in my DNA, and, I'm enjoying running the business and enjoying reaching the conclusion of our first three years and the turnaround of the business and very pleased to present our results to you today. So if you're on a couple of slides, that'd be great. We're gonna be talking for twenty minutes or so, and then really happy to answer any questions you've got. So please put any questions when asked, and we'll come back to those at the end. So if we go on a couple of slides.

1:28 So if we could go on to the next slide, I what we've done is we've put a couple of slides into the front of the presentation this time around just really to help situate, the business at TPXIMPACT and how we think about it. So we're in a really interesting position. We're one of the small number of companies that has really significant breadth, so we can actually take work all the way through policy, the way through to delivering a technical output. We've got good scale framework access, and that means that we can be a legitimate supplier into big public sector departments and parts of the public sector for multiyear, multimillion pound client programs.

2:14 But we also are very easy to work with with those public sector departments. So our teams are really driven by what their clients are trying to achieve, and that comes from a sort of background of being a purpose driven organization. And that means that we can fit in really well. We can build really good relationships with those teams, and they've become long term enduring relationships. And that sort of puts us in a unique position, really. Helps differentiate between a lot of the bigger companies operating our space and a lot of the smaller boutiques as well. To give you an idea of scale, we've got about 700 people. We certainly did at the end of March. We've been recruiting very strongly and working in our teams.

3:00 We've maintained the balance, and Noel will talk about this later, in terms of our inclusive mix, in terms of on slide e and c female representation and ethnic minority representation. So we've maintained a balanced business as we've gone through. So if we go on to the next slide. These are just a couple of things on our operating model, and we've we know that people have found these useful in the past, so hopefully, will be helpful. We think of our business. We are a specialist in dealing with public sector organizations and large public sector organizations and winning a mix of contracts often very, very large. And in order to do that, we need to be on the right frameworks, and we need to be expert at bidding in public sector procurements.

3:46 Now that gives us a moat around our business because it means that there are only a limited number of organizations that can actually compete in that space, which is obviously a good place for us to be. The way we go about things is we develop really long term relationships. So often, we'll start with a small piece of work. We'll build our credentials. We'll build our track record with the client. And then as we move forward, those turn into much larger engagements, and then we mature those clients into accounts often with multiple revenue streams.

4:17 So those larger engagements that typically run over several years give us really good visibility of our revenue, and that means we can be much more planful about who we recruit, which skills, which capabilities, and helps us manage that demand for our people. And just finally, we've worked a lot over the last three years in terms of improving the way the organization works and our cash position. We're very fortunate. Our work majority of our work is time and materials. And our clients being public sector primarily, they're very good payers. So typically, our clients will pay at thirty days. So that gives us a really good foundation for managing our cash in the business. So if we can go on to the next slide.

5:02 I mentioned at the start that we've been on a three year turnaround. We concluded that at the end of March. And there was really some priorities that I was particularly focused on. The first was to get the organization working. So the conversion of revenue that we received from working with clients through to EBITDA. So we've improved that steadily over the period, and Noel will pick up on that later. But we've got that into a good place now in double digits on our EBITDA margin. And we've also substantially reduced our debt. So that makes the business far more sustainable and gives us a really good baseline for future growth. The other thing we've done is we've rightsized the business, so we've made sure that we've got good depth and capability where there's client demand. And we've also made sure that the internal parts of the business really function well.

5:54 And the way that we structured the businesses, I'll come on in a moment to talk about the three businesses we've got. We structured those so they can be scaled, and they provide a platform for our next phase, which is all about accelerating growth. On the right hand side, I've got a couple of examples there of some of the work that we do. But the key message here is that we've done all of this in the background, and we've really concentrated on keeping our client teams focused on clients because that's the secret to the long term success of this business is delivering real quality and real value for our clients. So if we can go on to the next slide, please. So we have three businesses in TPXIMPACT. You'll see from the FY twenty six results that the bit that trades as TPXIMPACT that does the digital transformation in the public sector represented about 75%, 77% of our business in FY twenty six.

6:50 That's likely to represent more like 85% of our business going forward. So that is the real growth engine of where those big public sector contracts sit. We have two businesses that are branded and specifically face off to distinct customer segments. So Manifesto that is a digital agency, really experts in engaging and getting experience for charities, museums, and attractions. And we have kits, which is a a real technology specialist business that deals with managed services and some of the big heavy engines, the systems that support the workings of government. So those are actually got slightly different client groups to TPXIMPACT, and therefore, they're branded separately and really focused on those clients.

7:37 But collectively, all three of those businesses are platforms for growth and will take the group forward. If we can go on to the next slide, please. So I've got a couple of examples here on our clients. So you can see from the logos there, we've got a really good spread of big public sector organizations. So you'll recognize things like land registry, which has been a very large client of ours over the last couple of years. HSBC, which may not be so apparent, but it's been a big data analytics client of ours for ten years plus now in some of the legacy companies and a sprinkling of charitable clients as well. So all pretty well known brands. The key thing about what we're talking through today is the progression. So in FY '25, our new business was around 70,000,000.

8:26 In FY '26, it was a 122,000,000. So when you compare that to sort of 78,000,000 of revenue in the year, you can see that we're building a really good backlog into this year and into future years. And that has continued in the first couple of months of this year with 31,000,000 of new business. So what I've put up here is some of our larger and longer term engagements, and you can see these are based on long term relationships. So land registry, we've been involved there, as I say, for a couple of years. We were initially awarded a £49,000,000 contract for four years. That was on on the basis of our existing work with land registry where we really proved our delivery capability. And then then the last year, we announced an £11,000,000 uplift.

9:11 And that is because they're using more of our services because we're delivering results for them, and they want to sort of deliver results even faster.

9:20 You can see there also on the other engagements. So things like the her majesty his majesty's prisoner probation service and also NHSE. Those contracts have the potential to be extended. So on NHSE, we were awarded a £22,000,000 contract, but the client has £11,000,000 for potential extension of that contract without having to go to reprocurement. And then finally, at the bottom, the Ministry of Justice, that's a win we've announced in this financial year, 16,000,000 over two years. So a really, really good engagement, really good win for us. The thing I want to draw to your attention is we've announced £31,000,000 worth of new business in the first two months. So there's another £15,000,000 of new business, which will tend to be smaller contracts across a range of government departments, but all within the themes that we're pursuing.

10:12 So if you go on to the next slide. So just to give you a a little bit of, detail, and in the appendix for this presentation, we've got three more detailed case studies. So please feel free to look at those as well, afterwards. So the first is NHS England. We're working on the vaccines programme. We're really pleased to have won this work. It means a lot to our teams within TPXIMPACT to work on this. It really helps some of the most vulnerable people in society get the protection that they need. It's a really important contract for NHS England, a really important theme. The emphasis in the NHS now is all around preventative care, and this is really us playing our part in helping to get preventative care out there, which will, in long term, reduce the burden on the NHS.

11:06 DEFRA is a really interesting engagement for us. It's a four year engagement at 39,000,000. So very, very significant. Key thing about this is that we obviously learned a lot through scaling land registry very, very successfully and very, very fast. To give you an example on DEFRA, within two months of winning the contract, we had 170 people working on that contract. So that just gives you an idea of the ability we have as an organization to scale those teams really, really quickly and deliver quality outcomes for our clients. If we could go to the next slide. So two further ones. Land registry. We got that £11,000,000 uplift, as I mentioned before. That's really on the basis of good work that we've done and a really close relationship with Land Registry.

11:56 So also on that piece of work, we're using I've mentioned there in the text, we use AI. AI gets talked about a lot. It's something that sort of permeates everything we do these days. But there, it's about helping to make their processes more effective so that they can manage down the backlog of applications going through land registry. And then finally, his majesty's prison and probation service. This is a really good example of where we were answering a policy question. The issue for government was prison overcrowding. One of the issues with that also is that for the probation service, they have lots of vacancies. So, they've got, is it 5,200 people in place and about 1,800 vacancies. Yep.

12:46 So a lot of work, spread over too few individuals. And our job was to use technology to help them interact with probationers in a remote way. So using technology, and that's things like how do you make sure you're talking to the right person? So you use AI enabled facial recognition. How do you ensure that you're talking to people through mechanisms that they can use? So you've got to think about people perhaps who don't have their own devices or don't have the latest phones, etcetera. And how do you maintain that consistency of contact between probation officers and probationers so that the probationers don't trip up against their conditions and end up in a prison cell. So really sort of tangible benefits for,

13:29 UK government in that sort of work. So if we can go on to the next slide. I'm gonna hand over to Noel now, our CFO, to talk a little bit about the financial results for last year. Thank you, Dawn. Thanks very much, and thanks to all of you for joining and dialing into the call to join us on the call today. I'm Noel Douglas, the CFO here at TPXIMPACT. I joined the company in February 2025 and originally started my career at or into my counseling training. This is my third role now in professional services, so it's a sector I'm really quite familiar with, really enjoy working in,

14:01 and know quite a lot about. I'm gonna take a few minutes running through, three or four slides now covering our headline financial and operational metrics, and I'll also cover our guidance for FY '27 before handing back to Bjorn for the last couple of slides. So, starting with headline financials, as you can see on the slide, it's been a good year overall with continued progress on all of our key profitability metrics, and it's been a really good way to round out the three year transformation plan that Bjorn has already articulated.

14:30 Talking through the numbers on the screen of FY '26 specifically, revenue was $78,100,000 up 1% from $77,300,000 in the prior year. Gross margin for the year was 31.6%, an improvement of 3% from the prior year of 28.6%, driven by good utilization over the period and robust pricing. Adjusted EBITDA was £8,600,000 for FY 'twenty six, which is up £3,000,000 or 54% on £5,600,000 in the prior period, driven by the improvement in gross margin and by our close management of central costs. And adjusted EBITDA margin for the year moved into double figures at 11.0%, an increase of 3.8% compared to 7.3% in the prior year.

15:16 That then flows through to adjusted diluted earnings per share, which were 5.4p for the period compared to 3p in the prior year. And then turning to the balance sheet in the pink box, net debt half to 4,200,000 from 8,500,000 in the prior year, driven by healthy cash conversion flowing through from adjusted EBITDA over the period. Leverage at the close of f y twenty six measured as net debt over adjusted EBITDA was 0.5 times, down from 1.5 times at the end of f y twenty five. So just turning to the pie charts at the bottom of the page, they meant to articulate the kind of spread of sectors and different governmental areas we're working with. So on the left hand side, we can see that the bulk of our revenue for FY twenty six, seventy one percent continues to come from clients in central government and not much change in the relative weighting of the other slices in that picture either.

16:09 So local government, health, charities, and private sector broadly consistent with what we've seen in, recently. Adding a bit of color to the central government sector, you can see the right hand pie chart where of the 71% revenue derived from central government, 53% comes from projects linked to place and infrastructure, which is largely working with his majesty's land registry and also the ministry of housing communities and local government. 16% comes from projects linked to environment. 7% comes from energy and trade, 15% from justice, and 9% from other areas. So, hopefully, that gives you a bit of feel for the spread of our customers. And overall, we're really happy to have a good spread of customers with our top five customers representing about 60% of revenue and our top 10 customers representing about 75% of revenue.

17:00 And no single customer is greater than 30% of total revenue.

17:04 We're also really proud of the deep relationships we've built across various government departments. And so our reputation for delivering gets client outcomes is kind of reflected in the fairly healthy average tenure that you can see in the pink box on the lower right hand side. Approximately 75% of all of our our revenue comes from clients we've worked with for at least three years, and in many cases, much longer than three years. And if you want a view of more of those stats in a slide, please refer to a slide in the appendix which which covers some of those numbers around plant concentration and plant tenure. If you could just move us on to the next slide, please. So I'll now talk to some of our nonfinancial metrics. We ended the year of 03/31/2026 with total headcount, including associates, of seven zero two, of which four fifteen were permanent TPXIMPACT employees.

17:56 Our female representation remains healthy at 48%, and our ethnic minority representation was broadly stable at 19%. Our carbon emissions for the year were fifteen fifty two tonnes. Our carbon intensity for the period expressed tonnes of CO2 per million pounds of revenue was 19.9, representing a modest increase from the previous year. And finally, our employee retention rate remains pretty healthy at 83%. So then if we could just move on to the next slide, please. So here we have a couple of charts that speak to gross debt and adjusted EBITDA over the last few years.

18:34 And you can kind of clearly see the last three years of of seeing a significant turnaround in group's finances overall. On the left hand side, the gross debt has been consistently reducing from peak of 24,500,000 in f y twenty three to a much more comfortable position of just over 4,000,000 at the end of f y twenty six, with leverage now down to 0.5 times as previously mentioned. And then in the bar chart on the right hand side, you can see EBITDA has consistently grown as the group has transformed from 2,300,000 in FY '23 to 8,600,000 in FY twenty six.

19:10 And also looking at adjusted EBITDA margin, the blue line on the right hand side, you can see EBITDA margin has steadily grown each year from 3.3% in f y twenty three through to a much healthier double digit out of 11.0% in f y twenty six. So the transformation plan has worked really well, and, actually, the outturn for FY '26 sets us up really well for FY '27 and beyond. And I'll now go on to the next slide to talk a little bit about our outlook for FY '27 specifically.

19:40 Thank you very much. So just introducing this slide and to recap, as Bjorn mentioned, we had a good sales year in FY '26. We recorded 122,000,000 of new business over the course of the year.

19:53 And that, as noted at the top of this slide, that level of new business means we closed FY '26 with really good levels of revenue and EBITDA visibility for FY '27, and a really strong backlog leading into the year. We've also seen £31,000,000 in new business books already in the first two months of f y twenty seven, so it's been a good start to the year.

20:14 And that context really frames the guidance which we're giving today for full year '27. So the guidance that we're giving today is, we will record this financial year healthy double digit revenue growth. We expect adjusted EBITDA of not less than £12,000,000 for f y twenty seven. We expect adjusted EBITDA margin to improve by around 1% compared to FY '26. And we expect over the course of FY twenty seven net debt to fall to zero and certainly to be at or better than zero by the end of FY '27.

20:50 And that covers our full guidance for FY '27, but now I'm gonna hand back to Bjorn who's gonna talk a bit more about the medium term plan and outlook. Thank you very much. Now if we can go on to the next slide. So, fundamentally, having gone through the last three years and got the business units and the businesses where we wanted to and also getting the conversion of revenue through to EBITDA where we want to and getting to a very strong financial position. So our balance sheet is is much stronger. Debt is a lot lower to a point where we we don't worry about it anymore. I think it's it's easily coverable through our trading. We're in a really good position to talk about how the business goes forward. And the picture you can see on the slide is me standing up in front of our teams in January, launching

21:39 our sort of next few years of plan and really talking to them about accelerating growth and maximizing impact. So it kind of plays to our differentiation. So we attract people who want to make a difference, and that works really, really well with our customer base. So leaning into that and emphasizing that, but also making sure that growth is a good thing in our business because it creates opportunities for our people. It obviously creates value for shareholders and just leaves us with a stronger, healthier business. So in the medium term, the sort of the planks that underpin that acceleration of growth and delivering of impact for our clients, we're going to build on our core strengths. So place an infrastructure. So if you think of the work we've been doing around planning, housing, land registry, etcetera, we've really got a good reputation there.

22:31 Transforming government, which really brings sort of lends itself to our user centered design and our data heritage. And there, we're working with people like the department for energy security and net zero on things like heat networks and then into other organizations that are linked to that and health. So we've talked about our NHS e contract around vaccines, but also building further into the health environment. Essentially, the way we're gonna go about that is you'll have seen probably in early announcements, we've hired a new chief growth officer. And the reason I hired that individual is I wanted her to focus on developing our growth team into a team that was really proficient at managing accounts and account relationships.

23:20 Because that's the route to us deepening our relationships with our big clients, making sure that we have multiple revenue streams with them, And that gives us a much longer term visibility of where their needs are and allows us to adapt and move and meet those needs. So we end up with longer term relationships. And that's going really well, and we're focused around those three areas. So place and infrastructure, transforming government and health, and that's how we develop our pipelines. In terms of areas that we can easily expand into, so we can use our current knowledge, our current credibility to move into. I've talked here about adjacent areas. So this is, for example, when you're looking at any of the three areas above, so if you take things around, say, planning, that planning data is not just used by central government. It's used by local authorities.

24:12 It's used by housing associations. It's used by developers in the private sector. So those are all people who have got an interest in how we can work with that data, how we can bring geographic data together with user data, the sort of expertise that we've got that translates very easy into those sectors. And so that's a natural area for us to expand our footprint. Second area is to think about the work that we do for our clients. So I think we've emphasized over the last couple of years that we were trying to build a business that could do the end to end digital transformation for our clients. So that's everything from policy to research to user centered design to thinking about the data structures that need to underpin technology platforms and deliver those platforms.

25:04 So we're continuing to develop our offering in that area. We're continuing to embed AI into what we do, primarily with the with the purpose of improving the way that we deliver services, but also helping government deliver services more efficiently so they can deliver better services to citizens. Now you can wrap that all up by saying that where we really want to be and where we're increasingly becoming is being perceived as a strategic supplier to government. So we want to be one of the key people that government looks to when they think about improving service delivery through set digital transformation. So we have are building that reputation. We have that reputation already in a lot of the areas above, and we wanna build upon that so we become seen as a key contributor to government.

25:55 And if we go on to the next slide. So one of the reasons that's really relevant now is that in June last year, the government agreed the spending across government departments and arms length bodies in what's called a comprehensive spending review. So that's where they agree the amount of money and resource budgets for three years and in capital investment budgets for four years. So departments and arms length bodies, so people like land registry, have certainty about their funding. And that means that they can think about the programs they want to deliver, how they're gonna improve the way they interact with other parts of government and systems to use their services and invest in these multiyear contracts. So we've seen a bit of that in terms of the market improving for these multiyear contracts, and that's been in concert with the fact that we have improved our business. So we're also in a better position to compete and win those contracts, and we've got deeper relationships. So the combination of the two is really enabling us to accelerate the pace of change at TPXIMPACT, accelerate our growth.

27:02 We we were asked quite a lot about, you know, how to summarize what the investment opportunity looks like in TPXIMPACT. So we've pulled a few bullets together, which we hope are useful for people on the call. We operate in a very, very large market. And even though we are scaling up, we are still a relatively small player in that market. So there is lots of opportunity to grow into that market. And as I've talked about with those adjacent areas as well, you know, that market is really huge. But it's an area that we can play really, really confidently on the basis of placing infrastructure credentials, our transforming government credentials and our health credentials. As a business, we're pretty CapEx light. We are a people based business. Our cash flow is robust.

27:49 As I've already talked about, our clients have internal measures on how quickly they pay. So they typically pay within thirty days, which is a good place for us to be. Those long term contracts, which we've become particularly expert at winning and running and delivering safely, which is really important, give us excellent revenue visibility. So it means we can optimize the business over time so we can work on things like gross margin on some of those engagements over time. I think we've got good scope to develop the business. We've created a platform. We've sort of got a a pretty lean business. And as we leverage that, we bring on more clients, we bring on more revenue, then we'll see that play through into operating revenue, operating leverage, and improved EBITDA margins.

28:36 As I've already touched on the sort of the motive being in the public sector and being expert at winning those public sector procurements, plus our track record of delivery sets us apart and gives us some security in terms of limiting the number of competitors who can compete in our market. And I think finally, the teams we have running the business units and the team we have managing TPX overall have demonstrated through the last couple of years that we can run a transformation, and we can bring that business forward, engage with clients, build their trust, and win, you know, not just one or two of these large multiyear contracts, but we're now winning them on a regular basis, which is a great place to be as a business. So that was just a brief summary.

29:24 Within TPXIMPACT at the moment, we've got a lot of enthusiasm. We've got a lot of energy. As I showed you in that photograph earlier, sort of in January, we really started to talk about the growth and the potential because we could see the way that FY '26 was going. We were building that really good new business backlog. That has continued into this year. So it's a very positive and motivated place to be at the moment, and it's great to be able to present such positive results. So I'm gonna stop there and hand back, and I'm really happy to answer any questions. So, Noel, I think you're gonna take us through some of the questions. Yeah. Alex, shall I just read these out in turn and between me and Go ahead. Yeah. Please.

30:09 Okay. So the first question is from Brian. I'm not sure if everyone online can see the questions, but in case no one can't. It's a question that says we won a significant NHS contract recently. What are your growth expectations in the sector? Do you have a promising pipeline or horizon for further NHS work? Yeah. So as as I said during the presentation, we've got three pillars where we're thinking about building our workaround and then accounts within them. And certainly, health is one of those key pillars. We have other contracts in in the NHS. So in previous presentations, I think we used an example of a dashboard we created between one of the health trusts and local government to enable social care, people to transition from hospital care into a local care, social care environment.

30:56 So it is already a pretty established sector for us. We certainly have you know, it's a very, very large sector, and it's certainly what we're focused on growing. So the answer is yes. We're very much pointed at health. We see that as a key plank of the future of, the company. Awesome. Thanks, Bjorn. I think the next two might be for me. So one, it says congratulations on a successful turnaround. Thank you. Well done. Not easy. Are your impairments write downs now completed? Yes is the short answer. There were multiple acquisitions made in the first four years of the panoply post IPO, And they performed with differing levels of success in the early years, but we now have a really coherent way that we go to market in terms of three team business units.

31:44 And so any of the historic write downs and impairments that we had relates to those earlier acquisitions from our point of view are largely in the rearview mirror. So I wouldn't expect any more in the near term. Then there was another question. Do you expect your FY twenty seven revenues to be above or below $100,000,000 Well, we haven't guided to revenue. We just said we expect to be at 12,000,000 EBITDA or not less than 12,000,000 EBITDA for f y twenty seven, and we expect about 1% margin accretion. So if you do the math on 12,000,000 EBITDA and 12% EBITDA margin moving up from 11% to f y twenty six, that would take us to around a 100,000,000. And whilst we haven't guided to it, I think we'd be a little disappointed if we fell below that number. But what we will manage the business to is EBITDA. You know, it's really important that we deliver profitability.

32:32 Revenues look more volatile. If there's more demand, we'll aim to service it. If for any reason there's a bit less, we will cut across accordingly. But, yeah, mathematically, right now, the expectation is very much around the 100,000,000 number for revenue. So the next question, again, from Brian. We've got quite a number of questions in here. Are government budgets in place to fund potential further TPX project wins, or are they subject to review, strike change, strike halt? Well, I mean, probably the best way of answering that is we are continuing to to bid for work, which is funded. We see a lot of opportunity. We're very clear on the areas that we are differentiated and the areas that we can really make a difference. And, yeah, we don't we don't see any immediate issues around funding constraints on the projects we're bidding for.

33:26 Thanks, And then there's another one around AI, which maybe you're kind of covering. Is there a danger that clients could use AI to solve their problems instead of paying TPX to do so? I don't think so, but you might wanna unpack it. But Yeah. So so just to unpack that. I mean, first of all, we use AI. I mean, we use it ourselves to run our business. We use it as an extension. We use it as an augmentation. So it's a tool that helps our people become more efficient, straight, more effective. We also use it with clients. Clients very often look to us for guidance on how to responsibly and safely use AI because there are there are great benefits on AI, but there are also some limitations and some dangers. It's fair to say that AI we you know, I guess if we were talking twelve months ago, people would ask questions about, you know, how many AI projects are you getting.

34:19 The question's slightly different now because AI is pretty much involved in everything we do. It's not replacing our people. It's making them more effective. And the way we are, we are we are really a technology consulting business. So clients look to us for advice on how to use AI. And also the way that we bring together, you know, that really good understanding of a client's policy issues, the ability to undertake really, really good research, understand users' needs, and then actually provide technology solutions that meet those needs. It's something that isn't easily replicated by AI, but we will use AI in all of those different aspects to to a greater or lesser extent to make us to make us more efficient, but also to improve the delivery for our clients.

35:12 So at the moment, we see AI as being something that is helping our business. And the way we approach it, our understanding increasingly our sort of track record of using it successfully with clients is an asset rather than anything else. And we've had instances, haven't we, where clients we've run roundtable sessions with clients at our offices, talking to them about use cases for AI, helping them understand how they might be able apply to their business areas. So at the moment, it's it's driving people to come and have discussions with us rather than not having any discussions. Yeah. Of the next question is from Benjie. Of a 122,000,000 new business, how much relates to renewals and extensions in existing clients versus net new client wins? Oh, so should I should I pick this up?

35:58 Yeah. So first of all, that 122,000,000, about 70,000,000 of it was big contracts that we announced, those big multiyear contracts. So about 50,000,000 plus was actually smaller contracts, so smaller contracts with departments or perhaps renewals or extensions. The reality is that for most of our work, it's not completely out of the blue. You know, we'll typically establish a relationship. We'll build some credibility. We might do a smaller engagement, and then we'll get into a competition or procurement for a much larger piece of work. So you can kind of define it either way, but in most of the areas that we're really successful on these big bids, we would already have demonstrated our credibility with the clients.

36:48 And that's kind of the job that our account teams and our delivery teams do every day. It's about doing great work, establishing credibility. And off the back of that, we win new contracts, further contracts to sort of, you know, demonstrate more what we can do over these multiple year multi 10,000,000 payout contracts. So I hope that answers the question. If not, please pop it back up. But Yeah. Yeah. So then moving on to next one, page 16, where we show half by half EBITDA. This consistently been a second half weighting. Is that coincidence? Or is there a reason why h two is higher EBITDA than h one? I'd sort of answer that in two ways. Yes. There's a slightly higher h two weighting when you look at the maths historically.

37:36 I I'd say it's partly a coincidence. If you're growing EBITDA, then your second half will always be higher than your first half, and every half should be sequentially higher than the one that's gone before. So that obviously be that aspect to it. The other thing that can sometimes influence revenue falling through into EBITDA is if there is an element of spending at the end of the financial year for many of our clients, we may stand to benefit. But otherwise, I I wouldn't say we're a particularly seasonal business that's particularly weighted to second half. The thing that will affect revenue that flows through to EBITDA is number of working days. And in the second half, you have the the downside of a short month in December, which which tends to be a bit lighter on revenue. But on the other hand, you've got fairly four months in January, February, and March, which go to compensate for it. So I'm not sure there's a particular seasonality that I would read into that, although you do see a bit of that trend historically.

38:27 So go to the next question. Yeah. Sure. What's our current utilization, and did you improve it during the year? We didn't quote that as a metric externally. We would normally I mean, people measure it in all kinds of different ways. We think it's fairly healthy, and we will always be looking to monitor it on month by month basis, basically. In terms of do we improve the joint year? It's been fairly consistent throughout the year, actually. So we've had pretty good utilization of most of our cohorts of teams pretty much through the whole year. So I think if I look month by month, I went to a particular people trough. I I think the that that's absolutely right. And I think if we think of the last three years, a lot of our effort, particularly in the first year, sec the second year, was around getting the business operating on a much more commercial basis.

39:22 So that's really where we made big strides in improving things like utilization, getting the right people onto the right engagement. So that's where the sort of big GM progression took place. So in the last year, as Noel says, we we operate at a very good level of utilization. Our people are very busy. We also want people to be involved in internal capability development and also to support our growth. So support our development of new work with clients as well. So we won't drive for kind of a 100% level of utilization because we need to keep the business sort of sustainable and healthy. But certainly, we don't run, you know, we don't regularly run a bench. We don't have people sitting around waiting for work. Our people are generally very, very busy.

40:08 Which I think answers the second half of the next question as well. So Ian asked, any plans to return to M and A? And can you share average bench utilization? I think we've covered the second part. In terms of plans to return to M and A, well, our capital allocation strategy at the moment is essentially to focus on debt reduction first. And as we go through FY '27, we expect our net debt to fall to zero and start to turn to net cash. We'll have discussions internally with our board about how we, look at our capital allocation policy going forward. But certainly, our primary target at the moment is just to to bring the debt to nil. Yeah. And I think, you know, if you look logically at a business like ours, how would you grow and develop it over time? Then things like very selective m and a to give us access to new clients is definitely an interesting area.

40:55 And we use we do use a supply chain. So deepening our capabilities by, you know, incorporating some of those within TPX could also be good things. These are these are relatively lower risk sort of M and A things. And the team here, you know, we've got experience of turning nine different organizations into three well functioning businesses over the last three years. So we're pretty we're pretty comfortable about that. But I think we're probably not quite in the position yet from a financial point of view to be thinking about that, and that's what the board's got to go through first. Yeah. So then two questions from Georgia. One, staff growth was about hiring subcontractors in FY '26.

41:40 How will you retain these people in a generally rising UK public sector IT services market? And then two, good work on managing the balance sheet, how low can DSOs go given the UK government promise. So I guess maybe I'll start on the first one. We wanna ask you to pitch in. When we say staff break is about hiring subcontracts in FY twenty six, the the mix has changed a little bit. The headcount is up year on year by about 15%. It's quite back weighted. So you see the the overall revenue growth, f y twenty six to f y twenty five is 1%. But sequentially, our second half revenue was 16% higher than our first half. And that's the story that goes somewhat to explaining why we've got more heads at the end of f y twenty six than f y twenty five. It's about that new business momentum and higher revenue levels in the second half of the year that is gonna drive us forward in f y twenty seven as well.

42:31 It's also true to say that we have leaned on our associate sort of pause of resource a little bit more in the last three or four months as we're standing up some of the larger contracts that we've announced as wins since Christmas. And our opportunity over time is to land really well with the clients, perform really well to their expectations, and start to hire more permanent staff into that demand and to limit our our reliance on the associate and contractor pool over time as well. But in terms of how we retain this, we've been generally rising market. Well, it's all about our employee value proposition, which I think is kind of strong, competitive with others. And it's about the impact that our teams feel they can make with the clients they're working on, which is really the reason they get out of bed in the morning, working on the vaccines program, driving really good uptake of vaccines in neonatal neonatal and early years and feeling that their work is making a difference for those clients in a in a meaningful sense for the, know, for UK citizens.

43:34 Anything you'd add to that, Bjorn? No. I think it's good. And then second part of the question in terms of managing balance sheet, how low can DSOs go? Honestly, it's it's not something I felt the need to drive because so many of our clients are really easy, simple, regular payers. So as compared to private sector with public sector, as long as the administration is in order, the purchase orders are all lined up, then receiving payment on time is generally never an issue. So we will always obviously work with our clients to pay us as quickly as possible, but it's it's typically not something we need to chase. And I don't think it's a massive lever for improving working capital or a huge focus either. If clients are happy and they're paying us in term to their regular credit terms, then we won't press them to do anymore. So move on to the next question. So from Ashton, please, can you give an indication of the strength of your current bid pipeline?

44:26 Obviously, not something we quote for competitive reasons, but what I can say is our bid team is very busy. And with our sort of continual move to more of an account focus, we every every month, every day, we get better at qualifying our bids, so the quality of our bid pipeline improves. So, you know, numbers on bid pipelines can mean anything because it depends where in the stage you bring them. But, actually, the team is busy. We've got good opportunities. We've got good client relationships. Obviously, we we have won a lot of work as well, so we've got really good coverage into FY twenty seven, which I think Noel has mentioned already. So we're fitting in a a good strong place for this year.

45:13 And, yeah, teams are busy and looking to secure that long term long term work for us to continue our growth. That's great. Now if I may just jump back in there, thank you for addressing all those questions for investors today. But before we direct investors to provide you with a feedback, which one is particularly important to yourself and the company, can I please just ask you for a few closing comments? Yes. I'd just like to summarize. First of all, thank you very much for the questions. It's really, really helpful to get those. We continue to refine the presentation to try and build in from questions on previous times, so it's really useful to get those. Look, I'm really pleased. We've we've taken this business on quite a journey over the last three years. It's fantastic to see the momentum build, particularly during the second half of last year and into this year.

46:02 Really good momentum on new wins. Engagements are ramping very well. So we always put client quality and delivery at full front and focus on that. And then longer term, we can look to drive gross margin improvements on those bigger engagements. You'll see in the written thing, I've talked about wanting to have more £10,000,000 plus accounts this year. We're really on track to do that. So, yes, I'm feeling really pleased. I'm very grateful for the work that the team here at TPXIMPACT do, And it's been a pleasure to be able to share that with you today. So thank you very much for your time and I look forward to speaking soon. Well, let you all know. Thank you once again for updating investors today. Could I please ask investors not to close this session? As you know, I'll be automatically redirected to provide you feedback, which will help the company better understand your views and expectations.

46:53 On behalf of the management team, we would like to thank you for attending today's presentation, and good afternoon to you all.