Update on financing arrangements

The Board of TPXimpact Holdings plc is pleased to provide an update on the Company's financing arrangements.

As previously announced, net debt (excluding lease liabilities) at 31 March 2024 was just over £7 million, the lowest level in over three years. Gross borrowings under the Revolving Credit Facility ("RCF") at the same date were £16.2 million and have since reduced to £12.2 million, compared with £24.5 million a year ago, a 50% reduction.

Given the significant improvement in the Group's debt position, the Board and the Company's bankers have agreed to extend the maturity of the RCF by one year to July 2026 while reducing the amount of the facility from £30 million to £25 million effective from 21 June 2024 to better reflect the ongoing needs of the business. The accordion of £15 million will continue to be available, if required.

In addition, the borrowing conditions ("covenants") of the RCF have been eased, one quarter ahead of schedule. These covenants now comprise two measures, to be assessed at each quarter end: (i) a leverage ratio1 of no more than 2.5x; and (ii) an interest cover ratio2 of no less than 3.0x for the periods ending 30 September and 31 December 2024 and 3.5x for the year to 31 March 2025 and thereafter.

Steve Winters, Group CFO, commented:

"We have made significant progress in reducing debt over the last twelve months. The favourable amendments to our financing arrangements announced today represent a return to a more normal framework for debt and cash management and will allow us greater freedom to manage and invest in the business effectively.

"With a strong balance sheet, we continue to be well-positioned to achieve our targets for top-line growth and margin improvement, in line with our three-year plan, as well as manage interest costs more efficiently."

1Leverage ratio: net debt (excluding lease liabilities) to rolling 12M Adjusted EBITDA

2Interest cover ratio: rolling 12M Adjusted EBITDA/net finance costs