Advanced Business Reading

TechVantage plc Reports Q3 Results Below Market Expectations

For immediate release
30 October

TechVantage plc (LSE: TVAN) today announced third-quarter results significantly below analyst forecasts, with revenue declining 12.3% year-on-year to $342.6 million.

Financial Highlights:

• Revenue: $342.6m (Previous Q3: $390.8m)
• Operating profit: $48.3m (Previous Q3: $67.5m)
• Operating margin: 14.1% (Previous Q3: 17.4%)
• Net cash position: $156.2m (30 June: $198.4m)
• Basic earnings per share: 15.2p (Previous Q3: 22.8p)

The technology solutions provider attributed the shortfall to persistent semiconductor supply chain disruptions and weakening demand in key Asian markets. The company's enterprise solutions segment saw revenues decline 18.4%, while the managed services division demonstrated more resilience with a modest 4.2% decrease.

"These results reflect challenging market conditions and operational headwinds," said Sarah Chen-Williams, Chief Executive Officer. "We are implementing decisive measures to stabilise performance, including accelerating our cost optimisation programme and restructuring our APAC operations. Whilst the immediate outlook remains challenging, our robust balance sheet and market-leading positions provide a strong foundation for recovery."

Strategic and Operational Updates:

• Initiated $75m cost reduction programme targeting operational efficiencies
• Restructuring APAC division with expected one-off costs of $12.3m
• Maintained R&D investment at 8.2% of revenue
• Secured three major enterprise contracts worth $95m combined
• Successfully launched TechVantage Cloud 2.0 platform

Outlook

The company has revised its full-year guidance downward, now expecting revenue growth of 0-2%, compared to previous projections of 8-10%. Operating margin guidance has been adjusted to 14-15% from the previous 16-18% range.

A conference call for analysts and investors will be held today at 14:00 BST.

Media Contact:
James Whitworth
Head of Corporate Communications
j.whitworth@techvantage.com

About TechVantage plc
TechVantage plc is a leading provider of enterprise technology solutions, serving over 2,000 clients globally. Listed on the London Stock Exchange, the company employs more than 15,000 people across 32 countries.