Name: TPXimpact Holdings PLC: An incredibly cash generative business blending autonomy with responsibility
Uploaded: 2023-01-19T19:05:31.962778+00:00
Duration: 955 s
Channel: Master Investor

Master Investor

Neal Gandhi founded TPXimpact Holdings (AIM: TPX) with a mission to reduce, and eventually eradicate the bureaucracy that paralyses government programmes at local and central level.
 
The company is a technology-enabled services company focused on digital transformation which in Gandhi’s words: “Empower our teams at the edge to get the job done without bureaucracy.”
 
TPX does that, he says, by pulling together multi-disciplinary teams, to create solutions that work and deliver against the goal for companies.  He adds it’s about sharing findings, ensuring great value for taxpayers with the ultimate goal of benefiting society.
 
The client list is impressive and includes DEFRA, the Food Standards Agency and the NHS.  TPX counts 50 of the largest 160 local authorities as its clients, and commercial customers include Legal & General and HSBC. 
 
While society benefits, Gandhi wants to make sure shareholders do too. He says the business is incredibly cash generative, and on a run rate basis his and the team’s goal is to deliver £200 million revenue by March 2025.

Neal Gandhi founded TPXimpact Holdings (AIM: TPX) with a mission to reduce, and eventually eradicate the bureaucracy that paralyses government programmes at local and central level. The company is a technology-enabled services company focused on digital transformation which in Gandhi’s words: “Empower our teams at the edge to get the job done without bureaucracy.” TPX does that, he says, by pulling together multi-disciplinary teams, to create solutions that work and deliver against the goal for companies. He adds it’s about sharing findings, ensuring great value for taxpayers with the ultimate goal of benefiting society. The client list is impressive and includes DEFRA, the Food Standards Agency and the NHS. TPX counts 50 of the largest 160 local authorities as its clients, and commercial customers include Legal &amp; General and HSBC. While society benefits, Gandhi wants to make sure shareholders do too. He says the business is incredibly cash generative, and on a run rate basis his and the team’s goal is to deliver £200 million revenue by March 2025.

About TPXimpact Holdings

TPXimpact Holdings' approach

TPXimpact Holdings' customers

TPXimpact Holdings' revenues

TPXimpact Holdings' acquisition strategy

TPXimpact Holdings' key selling point for investors

TPXimpact Holdings' focus on reputational growth

https://d3ev5earl6dvd0.cloudfront.net/public-media/videos/004/113/004113/video_XBU59oG.mov

Sarah Lowther talks key facts and figures with Neal Gandhi, CEO of TPXimpact Holdings. TPXimpact Holdings has a vision to deliver impactful, sustainable digital transformation to enrich how individuals and society experience the world. The company's values "autonomy with responsibility" contrast with the hierarchical, top-down approach of many legacy companies. Instead, believing that intelligence sits at the edge rather than at the centre or top, TPXimpact Holdings empowers its teams to get the job done, while also giving them responsibility.

TPXimpact Holdings' approach to achieving "autonomy with responsibility" is to set up multidisciplinary teams (such as user researchers, content designers, technical architects and full-stack software developers) and apply a highly iterative work process to create solutions for the intended end user group. TPXimpact Holdings sees this approach as key to avoiding failures of big transformation programmes such as The National Programme for IT in the NHS, or Track and Trace.

TPXimpact Holdings' customers include clients from the public sector (selected central government departments and agencies, the NHS, local authorities), not-for-profit brands, as well as commercial brands (Legal and General, HSBC etc.).

TPXimpact Holdings' revenues are expected to total £79 million for the year ending 31 March 2022, with £11.8 million EBITDA, which represents a considerable increase over the previous year.

Buy and build remains TPXimpact Holdings' main acquisition strategy, in addition to organic growth (both of which should contribute to the company's overall growth in equal parts). Buy and spin-out remains an exceptional acquisition approach for the company, even though it has successfully implemented it in the past.

Every major technology cycle brings up a new set of winners; TPXimpact Holdings considers itself one of them given the company's comparatively low market cap.

TPXimpact Holdings considers reputational growth highly important. While the transition to an integrated model is difficult and continues to be work in progress, it also allows the company to attract a different, higher-quality clientele.