Tpximpact Share Discussion Threads

[tanners] 28/4/2023 21:02

Personally I don't see the level of debt or the technical covenant breach as a significant concern, and reckon they will be able to re negotiate the terms.

Obviously there is some risk, hence the depressed share price, but if they get the business back on track (which is more than likely given the decent contract wins), then there's plenty of value to be had.

It'll be interesting to see how this pans out....

[bones] 28/4/2023 17:17

Tanners, that is true (and deserves to be noted) but isn’t really the point since it is the covenants attached to the entire £30M revolving debt facility that are being reviewed. If the facility itself is under threat then the actual number of millions of debt (big however you look at it) remains problematic.

I highlighted the seriousness of this situation as an antidote to the silliness going on here earlier in complete ignorance of this company’s travails.

Obviously those who punted in the 20’s have done well.

[tanners] 28/4/2023 15:47

Some people need to learn to read - the debt was £17.5M at 31/12/22; the credit facility is £30M, two different things entirely.....no different than having a 10K limit on your credit card, that's not necessarily your level of indebtedness!

Agree that the margin on the contracts is obviously the key, so like others who have doubled their money I've sold some but will retain 1/2 as I still think a possible takeover target for the likes of Gamma (which I also hold).

[hope67] 28/4/2023 14:32

thanks for the info didn't realise they had debt.

[bones] 28/4/2023 14:27

For the record, this was the “trouble at ‘mill” RNS from last year.

[bones] 28/4/2023 14:23

Billthebank, you would expect there to be profitability in these deals. I’m just wary of balance sheets with £100M of intangibles dominating the scenery! Don’t forget also that the founding CEO and his CFO were booted out last year. This is basically a turnaround story with new managers. I’d be surprised if the banks don’t insist on equity funding from the company to resolve any doubts about their £30M revolving facility. This is not yet a profitable group judging by last year’s accounts.

[guns1inger] 28/4/2023 13:47

Most probably placing at 25p to cover some of the debts. Very low margin here.

[guns1inger] 28/4/2023 13:46

Disgusting rampers,

look how they are dumping; this was being pumped on twitter and promoted. hey ho they failed to tell people they have massive debt and covenant breaches.

[billthebank] 28/4/2023 13:21

Yeah true bones re originality re contracts and yes get the debt management. One would hope this co who not that long ago were valued at above £250M would have the right managerial processes in place to ensure that the contracts are indeed profitable otherwise why take them on over four years if they didn't add anything to the bottom line

[firestorm911] 28/4/2023 13:05

Careful people, you may have got impaled here. Chasers do not know the debt mountain here and breaches of covenants.


Regards,
F911
RMC

[firestorm911] 28/4/2023 13:04

Tpximpact (LSE:TPX)
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From Mar 2023 to Apr 2023

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TIDMTPX

RNS Number : 8489U

TPXimpact Holdings PLC






31 March 2023

31 March 2023

T PXimpact Holdings PLC

( "TPX", "T PXimpact ", or the "Company")

Covenant Waiver and Current Trading

TPXimpact Holdings PLC (AIM: TPX) , the technology-enabled services company focused on digital transformation, provides an update in relation to its debt covenants.

Further to the announcement made on 31 January 2023, the Group reports that it has been granted a waiver from the requirement to test each of the financial covenants applicable to its GBP30m revolving credit facility as of 31 March 2023. TPXimpact's lender is currently undertaking a review of the Group's short and medium term cash flow forecasts, the outcome of which will determine the nature and extent of future waivers. A further update will be provided when this review is concluded.

Current trading performance

The Board confirms trading in January and February 2023 was in line with management expectations. In addition, the momentum in new orders has continued in Q4 FY23, with new business wins of over GBP30m in the quarter.

[firestorm911] 28/4/2023 13:02

I just sold my load. Nice profit from 23p

They breached covenants, so potentially they can be put in administration or massive fundraising.

Regards,
F911
RMC

[bones] 28/4/2023 12:55

Small matter of £30M of debt on the balance sheet with which they recently breached banking covenants. Those are temporarily waived but the banks have still to agree with the company how that will be fixed. I don’t rule out an equity raise to help reduce the debt ratios here.

As for the new contracts, what I would like to know are the likely profit margins on them. Hopefully big enough to make inroads into the debts. It is nonetheless encouraging to see the size of these wins. That should assist in the bank negotiations.

[billthebank] 28/4/2023 12:41

We have contracts over the next four years worth £77M and the company is pres worth less than £50M. NUTS!!!

[hope67] 28/4/2023 12:29

They might buy back on todays news its a big contract that

[billthebank] 28/4/2023 11:54

So reduced down to 4.46% but as far as I am aware that has been LOAM s modus operendi over the last 12 months?

[babbler] 28/4/2023 11:45

Lombard were buyers not sellers

[billthebank] 28/4/2023 11:34

How much do Lombard have?

[hope67] 28/4/2023 11:30

Just clearing Lombard out then should go higher

[ridingthewaves1] 28/4/2023 11:18

I've bought mte

[tomboyb] 28/4/2023 11:17

Could be in 60s today -

Lets see -

[tomboyb] 28/4/2023 11:07

NT @ 49p -

[tomboyb] 28/4/2023 11:07

52 week high was above £2 -

Was smashed @ 20p odd but great RNS today -