TIDMITIM
RNS Number : 8925N
itim Group PLC
28 September 2023
28 September 2023
itim Group plc
("itim" or the "Company and with its subsidiaries the
Group")
Interim Results for the six months ended 30 June 2023
itim Group plc (AIM:ITIM) a SaaS based technology company that
enables store based retailers to optimise their businesses to
improve financial performance, is pleased to announce its unaudited
interim results for the 6 months ended 30 June 2023.
Financial Highlights
-- Group revenue of GBP7.4m (Half Year 2022 ("HY22"): GBP6.8m,
Full Year 2022("FY22"): GBP14.0m)
-- Booked Recurring Revenue of GBP6.4m (HY22: GBP5.6m, FY22:
GBP11.8m)
-- Recurring revenue percentage of Group revenue was 86% (HY22:
82%, FY22: 84%)
-- Annual recurring revenue ("ARR")(1) of GBP13.2m (HY22:
GBP12.6m, FY22: GBP13.2m)
-- Annual growth in ARR(1) 5% (HY22: GBP19%, FY22: 19%)
-- Adjusted EBITDA(2) (GBP0.2)m (HY22: GBP0.3m, FY22: GBP0.2m)
-- Adjusted EBITDA(2) margin (3)% (HY22: 5%, FY22: 2%)
-- (Loss)/profit before tax (GBP1.1)m (HY22: (GBP0.4)m, FY22:
(GBP1.3)m)
-- Cash GBP2.7m (HY22: GBP5.3m, FY22: GBP3.9m)
-- Earnings per share (3.02) pence (HY22: (1.20) pence, FY22:
(2.20) pence)
-- Adjusted Earnings per share(3) (3.02) pence (HY22: (1.06)
pence, FY22: (2.01) pence)
Full year numbers quoted above are audited and half year numbers
quoted above are unaudited
1. Annual recurring revenue
2. EBITDA has been adjusted to exclude share-based payment
charges, exceptional items, along with depreciation, amortisation,
interest and tax from the measure of profit.
3. The profit measure has been adjusted to exclude exceptional
items and share option charge
Enquiries:
Ali Athar, CEO
Itim Group plc Ian Hayes CFO 0207 598 7700
Katy Mitchell
WH Ireland (NOMAD & Harry Ansell
Broker) Darshan Patel 0207 220 1666
Graham Herring
IFC Advisory Florence Chandler 0207 3934 6630
ABOUT ITIM
itim was established in 1993 by its founder, and current Chief
Executive Officer, Ali Athar. itim was initially formed as a
consulting business, helping retailers effect operational
improvement. From 1999 the Company began to expand into the
provision of proprietary software solutions and by 2004 the Company
was focused exclusively on digital technology. itim has grown both
organically and through a series of acquisitions of small, legacy
retail software systems and associated applications which itim has
redeveloped to create a fully integrated end to end Omni-channel
platform.
CEO Statement
The Group is pleased to report an increase in revenue in the
period despite the well documented challenging market conditions
for retail companies.
Revenue for the six month period was GBP7.4m (HY22: GBP6.8m) an
increase of 9%, of which recurring revenues were GBP6.4m (HY22:
GBP5.6m) representing 86% of sales and underpinning future sales.
Adjusted EBITDA (EBITDA excluding share-based payment charges and
exceptional items) fell to a loss of GBP0.2m (HY22: GBP0.3m) as a
result of investment in R&D and in building and protecting our
staff base. Cash balances totalled GBP2.7m at the period end (FY22:
GBP5.3m) reflecting investment in anticipated product development.
Adjusted loss per share was 3.02p (HY22: loss 1.2p).
The wider retail market has remained challenging for most
operators however there are signs that omni channel retailers are
beginning to fare better than their peers. With this in mind, the
Group relaunched its consultancy business as a complement to its
technology offering and to enable our customers to gain the maximum
benefit from it.
The Group continues to benefit from its well established client
base with 80 customers resulting in strong recurring revenues.
Whilst new business remains a priority, the Group has significant
opportunity to upsell and cross sell within its customer base
enabling organic growth.
The Directors believe that the investment in the business over
the past two years has positioned itim for future growth, created
essential USPs in the market and broadened its offering with the
potential to increase revenues from new and existing customers.
As a result of this investment and in the Directors'
opinion:
1. itim is one of a few companies that can deliver a single
unified sales (commerce) platform to support omni-channel
retailers. Retailers no longer need to have separate platforms for
selling in stores (EPOS), or selling online (e-commerce), or
selling to B2B, or wholesale customers - itim can support all these
in one platform. This is seen as a significant USP for omni channel
retailing.
2. itim has enhanced its merchandising, stock management and
optimisation solutions, again to support retailers selling across
multiple channels. Numerous sales channels makes this much more
complex, which itim is well positioned to be able to address.
3. itim is a market leader in Price and Promotions optimisation
helping retailers increase cash generation, by either reducing the
markdowns and discounts they give away or improving recoveries from
suppliers through its advanced invoice matching, supplier funding
tracking and a supplier payments platform.
4. itim is a leader in improving digital supplier collaboration
through a series of portal applications built on its Electronic
Data Interchange history. This is coming to the fore due to the
rise in marketplaces.
The Board is resolutely focused on profitability and creating
shareholder value and is taking the necessary steps to reduce
investment in product, driving services revenues and returning the
business to cash generation. Whilst this will impact the rate of
subscription revenue growth it should result in higher margins and
increased profitability.
Finally, I would like to thank our employees and our partners
for the continued support they give to this business and the
commitment and faith they show that we will be a successful
business.
Consolidated Statement of Comprehensive Income
for the half-year ended 30 June 2023
Six month Six month Year ended
period ended period ended 31 December
30 June 30 June 2022
2023 2022
Unaudited Unaudited Audited
Notes GBP000 GBP000 GBP000
Continuing operations
Revenue 7,425 6,784 14,034
Cost of sales (5,514) (4,588) (9,538)
-------------- -------------- ---------------------
Gross profit 1,911 2,196 4.496
Administrative expenses (2,108) (1,860) (4,285)
-------------- -------------- ---------------------
EBITDA (197) 336 211
Amortisation of intangible assets (574) (443) (889)
Share option charge - (45) (58)
Depreciation (23) (20) (42)
Depreciation of leased assets (275) (184) (452)
-------------- -------------- ---------------------
Loss from operations (1,069) (356) (1,230)
Other interest - right of use
assets (21) (21) (45)
Loss before taxation (1,090) (377) (1,275)
Taxation 149 2 589
-------------- -------------- ---------------------
Loss for the period/year (941) (375) (686)
Other comprehensive income
Exchange differences on retranslation
of foreign operations (77) 51 124
Total comprehensive income
for the period/year net of tax (1,018) (324) (562)
============== ============== =====================
Earnings per share
Basic 2 (3.02p) (1.20p) (2.20)p
Diluted 2 (3.02p) (1.20p) (2.20)p
-------------- -------------- ---------------------
Consolidated Statement of Financial Position
as at 30 June 2023
As at As at As at
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Non-current assets
Intangible assets 10,349 9,233 10,069
Plant and equipment 586 508 721
Right-of-use assets 380 581 442
Deferred tax 83 4 164
----------- -------------- -----------
11,398 10,326 11,396
Current assets
Trade and other receivables 4,537 3,512 4,603
Cash and cash equivalents 2,697 5,295 3,922
----------- -------------- -----------
7,234 8,807 8,525
Total assets 18,632 19,133 19,921
----------- -------------- -----------
Current liabilities
Trade and other payables (5,673) (4,866) (5,776)
Right-of-use liability (214) (288) (297)
(5,887) (5,154) (6,073)
Non-current liabilities
Trade and other payables due
in more than one year (444) (355) (540)
Right-of-use liability (209) (359) (201)
Deferred tax (633) (563) (630)
(1,286) (1,277) (1,371)
Total liabilities (7,173) (6,431) (7,444)
----------- -------------- -----------
Net Assets 11,459 12,702 12,477
=========== ============== ===========
Capital and reserves
Called up share capital 1,561 1,561 1,561
Share premium account 7,398 7,398 7,398
Share options reserve 513 500 513
Capital redemption reserve 1,103 1,103 1,103
Foreign exchange reserve 73 77 150
Retained profit/(loss) 811 2,063 1,752
----------- -------------- -----------
Shareholders' funds 11,459 12,702 12,477
=========== ============== ===========
Consolidated Statement of Cash Flow
for the half-year ended 30 June 2023
Six month Six month Year ended
period ended period ended 31 December
30 June 30 June 2022
2023 2022
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Cash flows from operating
activities
Profit after taxation (941) (375) (686)
Adjustments for:
Taxation (149) (3) (589)
Share option charge - 45 58
Other interest on leases 21 21 45
Amortisation and depreciation 872 647 1,383
Cash flows from operations
before working capital changes (197) 335 211
Movement in trade and other
receivables 305 337 (384)
Movement in trade and other
payables (59) (383) 371
-------------- -------------- -------------
Cash generated from operations 49 289 198
Corporation tax (23) (42) 280
-------------- -------------- -------------
Net cash flow from operating
activities 26 247 478
Cash flow from investing
activities
Capital expenditure on intangible
assets (906) (907) (2,140)
Purchase of plant and equipment (24) (28) (49)
Net cash flow from investing
activities (930) (935) (2,189)
Cash flow from financing
activities
Interest repayments (16) - -
Payment of lease liabilities (266) (194) (438)
Loan issued (18) - (140)
Net cash flow from financing
activities (300) (194) (578)
Net decrease in cash and
cash equivalents (1,204) (882) (2,289)
============== ============== =============
Cash and cash equivalents
at beginning of year 3,922 6,172 6,172
Exchange (losses)/gains on
cash and cash equivalents (21) 5 39
Cash and cash equivalents
at end of year 2,697 5,295 3,922
============== ============== =============
Consolidated Statement of Changes in Equity
as at 30 June 2023
Share Share Share Capital Foreign Retained Total
capital Premium option Redemption exchange Earnings Equity
reserve Reserve reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 January 2023 1,561 7,398 513 1,103 150 1,752 12,477
Comprehensive income
for the year - - - - - (941) (941)
Foreign exchange
movement - - - - (77) - (77)
--------- --------- --------- ------------ ---------- ---------- ---------
Total comprehensive
income - - - - (77) (941) (1,018)
At 30 June 2023
(unaudited) 1,561 7,398 513 1,103 73 811 11,459
At 1 January 2022 1,561 7,398 455 1,103 26 2,438 12,981
Comprehensive income
for the year - - - - (375) (375)
Foreign exchange
movement - - - 51 - 51
--------- --------- --------- ------------ ---------- ---------- ---------
Total comprehensive
income - - - 51 (375) (324)
Share option charge - - 45 - - - 45
--------- --------- --------- ------------ ---------- ---------- ---------
At 30 June 2022
(unaudited) 1,561 7,398 500 1,103 77 2,063 12,702
At 1 January 2022 1,561 7,398 455 1,103 26 2,438 12,981
Comprehensive income
for the year - - - - - (686) (686)
Foreign exchange
movement - - - - 124 - 124
--------- --------- --------- ------------ ---------- ---------- ---------
Total comprehensive
income - - - 124 (686) (562)
Share option charge - - 58 - - - 58
At 31 December
2022 (audited) 1,561 7,398 513 1,103 150 1,752 12,477
========= ========= ========= ============ ========== ========== =========
Notes to the Financial Information
1. General information
itim Group plc is a public limited Company ("Company")
incorporated in the United Kingdom under the Companies Act 2006
(registration number 03486926). The Company is domiciled in the
United Kingdom and its registered address is 2(nd) Floor, Atlas
House, 173 Victoria Street, London SW1E 5NH. The Company's ordinary
shares are admitted to trading on the AIM market of the London
Stock Exchange ("AIM").
The Group's principal activities have been the provision of
technology solutions to help clients drive improvements in
efficiency and effectiveness.
The Group's interim report and accounts for the six months ended
30 June 2023 have been prepared using the recognition and
measurement principles of International Financial Reporting
Standards and Interpretations as endorsed by the European Union
(collectively "Adopted IFRS").
These interim financial statements for the six months ended 30
June 2023 have been prepared in accordance with the AIM Rules for
Companies and should be read in conjunction with the financial
statements for the year ended 31 December 2022, which have been
prepared in accordance with IFRS as adopted by the European Union.
The interim report and accounts do not include all the information
and disclosures required in the annual financial statements.
The interim report and accounts have been prepared on the basis
of the accounting policies, presentation and methods of computation
as set out in the Group's December 2022 Annual Report and Accounts,
except for those that relate to new standards and interpretations
effective for the first time for periods beginning on (or after) 1
January 2023, and will be adopted in the 2023 annual financial
statements.
The interim report and accounts do not comprise statutory
accounts within the meaning of section 434 of the Companies Act
2006. These interim financial statements were approved by the Board
of Directors on 22 September 2023. The results for the six months
to 30 June 2023 and the comparative results for the six months to
30 June 2022 are unaudited. The figures for the period ended 31
December 2022 are extracted from the audited statutory accounts of
the Group for that period.
The Directors believe that a combination of the Group's current
cash, projected revenues from existing and future contracts will
enable the Group to meet its obligations and to implement its
business plan in full. Inherently, there can be no certainty in
these matters, but the Directors believe that the Group's internal
trading forecasts are realistic and that the going concern basis of
preparation continues to be appropriate.
2. Earnings per share
Basic and diluted (loss)/earning per share is calculated by
dividing the (loss)/profit attributable to owners of the parent by
the weighted average number of ordinary shares in issue during the
period. For the avoidance of doubt the deferred shares have been
excluded as they have no rights to profits or capital. The
Company's share options have a dilutive effect over the two year
period.
6 months 6 months Year ended
ended 30 ended 30 31 December
June 2023 June 2022 2022
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Loss after tax for the year (941) (375) (686)
------------------------------------------ ------------ ------------ --------------
Exceptional items - - -
Share option charge - 45 58
------------------------------------------ ------------ ------------ --------------
Adjusted loss after tax for the year (941) (330) (628)
Weighted average number of shares
------------------------------------------ ------------ ------------ --------------
Basic - 000 31,211 31,211 31,211
Potentially dilutive share options -
000 3,657 3,657 3,657
Diluted average number of shares - 000 34,868 34,868 34,868
Earnings per share:
------------------------------------------ ------------ ------------ --------------
Basic - pence on continuing operations (3.02) (1.20) (2.20)
Diluted - pence on continuing operations (3.02) (1.20) (2.20)
Adjusted earnings - Basic - pence on
continuing operations (3.02) (1.06) (2.01)
Adjusted earnings - Diluted - pence
on continuing operations (3.02) (1.06) (2.01)
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