Imaginatik PLC Trading Update (4127X)
February 07 2013 - 8:25AM
UK Regulatory
TIDMIMTK
RNS Number : 4127X
Imaginatik PLC
07 February 2013
7 February 2013
Imaginatik Plc
("Imaginatik" or the "Company")
Trading Update
Imaginatik plc (AIM: IMTK.L), the world's first full service
innovation provider offering a range of technology products and
consultancy, today announces an update on trading for the year
ending 31 March 2013.
While good progress has been made this year on signing new
customers and up-selling to existing customers, three long-standing
customers which were expected to renew in the second half of the
year have opted not to do so, due to budgetary constraints. These
three contracts were expected to generate licence fee income of
approximately GBP0.35m to be recognized in the results for the
current financial year.
Each of these contracts was based on the Company's old
'technology only' model with no consultancy support, a model which
Imaginatik is making efforts to move away from in order to increase
both the effectiveness of the innovation programmes and the
stickiness of the customer base.
In addition to the loss of these contracts, there remains some
uncertainty over the timing of the signatures on some potential new
contracts. The timing of contract signatures may impact the level
of loss for the year and the Company's working capital
requirements.
Therefore, the Board believes both revenues and operating losses
are likely to be below market expectations.
In light of the above, the Company is considering the
possibility of seeking shareholder approval of the cancellation of
trading in the Company shares on AIM ("Admission"). The Directors
of the Company consider that the costs associated with maintaining
Admission may not be currently justified by the benefits given the
low liquidity in the Company's shares and the current difficulties
in sourcing equity financing for smaller companies in the public
markets. A further announcement will be made in due course.
Matt Cooper, Executive Chairman of Imaginatik, commented: "The
number of new blue-chip companies turning to Imaginatik as their
innovation partner of choice is a fantastic endorsement of our
business. However, our return to revenue growth and profitability
has not been as swift as we would hope. We do however continue to
firmly believe the long-term prospects for the Company to be
significant. The Board will now commence a review as to whether
maintaining the AIM listing is in the best interests of the
Company's shareholders."
For further information please contact:
Imaginatik plc Tel: 020 7917
2975
Matt Cooper, Executive Chairman / Shawn
Taylor, CFO
Northland Capital Partners Limited Tel: 020 7796
8800
Edward Hutton / William Vandyk
Newgate Threadneedle Tel: 020 7653
9850
Caroline Evans-Jones / Hilary Millar
About Imaginatik
Imaginatik provides a range of Innovation solutions comprised of
consultancy, enterprise software and program management to deliver
innovation results to companies such as The World Bank, The Chubb
Group of Insurance Companies, State Farm, Exxon Mobil, Pfizer,
Goodyear, Paccar and Cargill. Few companies possess the internal
capability to consistently generate fresh ideas, identify those
worth pursuing and reliably transform them into real,
value-enhancing assets. Imaginatik's mission is to help these
companies build sustainable innovation competencies.
Imaginatik is a public company whose shares are traded on the
AIM market of the London Stock Exchange (LSE:IMTK.L) and is a World
Economic Forum Technology Pioneer with offices in Boston, MA, and
Winchester, UK. For more information visit www.imaginatik.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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