TIDMIMO
RNS Number : 8534L
IMImobile PLC
24 April 2018
IMIMOBILE PLC
("IMImobile" or the "Group" or the "Company")
Trading Update
Continued organic growth; acquisitions performing well
IMImobile, a cloud communications software and solutions
provider, is pleased to announce the following update ahead of its
preliminary results for the year ended 31 March 2018.
Financial and Operational Highlights
-- There was strong trading momentum and organic revenue growth
over the year with turnover ahead of market expectations, up over
45%.
-- Year on year gross profit growth of over 17%.
-- EBITDA and PAT were in line with market expectations
following the anticipated investment in various growth
initiatives.
-- Continued strong cash conversion, over 85%.
-- Successful earnings enhancing acquisitions of Sumotext in the
US and Healthcare Communications in the UK, providing opportunities
for the distribution of IMImobile software and services into new
markets.
-- Further progress cross selling of core IMImobile IP to
Textlocal, IMImobile South Africa (formally Archer Digital) and
IMImobile Intelligent Networks (formerly Infracast) clients.
-- Ongoing product innovation and development of IP with recent
launch of RCS functionality(1) on the IMIconnect platform and
further development of the IMIbot.ai platform.
(1) RCS (Rich Communications Services) Business Messaging
capability which will bring feature rich media messaging to Android
devices.
Europe & Americas
IMImobile delivered another year of strong organic gross profit
growth in Europe and the Americas generated through its established
customer relationships, new contract wins and delivery of
innovative and scalable solutions to its growing list of blue-chip
clients.
The Company consolidated its position as the UK market leader
for digital and mobile interactions across major industry
verticals. In addition, there were new deployments in the region
within the retail, logistics and utilities sectors. These largely
recurring revenue contract wins will support growth in the year to
31 March 2019 and beyond. Up-selling across the customer base of
IMImobile Intelligent Networks (formerly Infracast) has also been
successful.
The acquisition of Healthcare Communications, the leading
provider of patient communications services to 140 NHS trusts in
the UK has significantly strengthened the Group's presence in the
public services sector.
The Company's presence in the US was enhanced by the acquisition
of Sumotext, a provider of mobile messaging solutions for
government, travel, retail, healthcare and non-profit
organisations. This offers a platform from which to grow
IMImobile's position in the US enterprise market.
MEA
Several new long-term contracts in the mobile operator, banking
and broadcast sectors provide a healthier outlook for the region
but, as anticipated, did not fully offset year on year declines in
gross profit as a result of currency headwinds and the impact of a
major customer contract renewal.
The Company remains confident of significant long-term growth in
the region. Momentum has gathered in the enterprise market through
IMImobile South Africa (formerly Archer Digital) upselling the
Group's cloud product suite into the banking vertical. The pipeline
of new deployments and opportunities is strong going into the new
financial year.
India & SEA
The region has seen very strong organic growth which has been
driven by successful deployments for the Telenor Group and a
further client win in the public sector.
The India Enterprise and Textlocal divisions have also
experienced good growth. Since its launch two years ago, Textlocal
India has now grown to over 18,000 paying customers.
Product innovation and IP
During the year to 31 March 2018 the Group increased investment
in its innovative products and platforms.
The Company recently announced the addition of RCS Business
Messaging capability which will bring rich media messaging to
Android devices. As a result, clients can now launch RCS messaging
solutions alongside other digital communication channels that are
available through the Group's cloud products.
We also introduced a Consent Management solution to help clients
comply with the new General Data Protection Regulation (GDPR) with
the first implementation of the solution delivered during the year
to 31 March 2018.
The Group continues to invest in AI and automation capabilities
with several current implementations for our IMIbot.ai product for
companies in the utilities and retail sector.
Successful acquisitions
Since its IPO four years ago, IMImobile has established a strong
track record for successfully integrating acquisitions and creating
revenue synergies. The acquisitions of IMImobile South Africa
(formerly Archer), Textlocal, IMImobile Intelligent Networks
(formerly Infracast), Sumotext and Healthcare Communications have
all been successfully integrated and IMImobile is actively engaged
in pursuing a number of opportunities to further cross sell and up
sell its market leading cloud products and solutions.
The Board continues to see exciting opportunities to play a
leading role in the continued consolidation of this exciting and
rapidly evolving market.
Jay Patel, Chief Executive of IMImobile PLC, commented:
"We have successfully built high quality software products that
are well positioned to help our clients meet the challenges of
digital transformation. The Group has now established its
reputation for strong cash generation and year-on-year progress and
we expect growth from all our divisions and geographies in the
coming year. The acquisitions we have made have performed well and,
adopting a similar, selective approach, we see further exciting
opportunities to take a leading role in the consolidation of this
sector."
For further information please contact:
IMImobile PLC c/o Redleaf Communications
Jay Patel, Chief Executive Officer Tel: +44 (0) 20 3575
Mike Jefferies, Chief Financial Officer 6881
Redleaf Communications - PR adviser
Charlie Geller Tel: +44 (0)20 3575
Alina Haritinova 6881
imimobile@redleafpr.com
Investec Bank - Nominated Adviser and Joint Tel: +44 (0)207 597
Broker 5970
Andrew Pinder
Henry Reast
Robert Baker
Whitman Howard - Joint Broker Tel: +44 (0)207 659
Ranald McGregor-Smith 1234
Francis North
About IMImobile PLC
IMImobile is a cloud communications software and solutions
provider that enables companies to use mobile and digital
technologies to improve customer experience and engagement.
IMImobile's cloud software platform manage overs 22 billion
messages and 42 billion commerce transactions a year across the
world. Organisations that trust us to deliver smarter digital
customer engagement include Centrica, AA, O2, EE, IKEA, BT,
Foxtons, Pizza Hut, Vodafone, Airtel, AT&T, MTN, three of the
major retail banks in the UK and public sector organisations in
India, US and the UK.
IMImobile is headquartered in London with offices in Hyderabad,
Atlanta, Dubai and Johannesburg and has over 1,000 employees
worldwide. IMImobile is quoted on the London Stock Exchange's AIM
market with the TIDM code IMO.
Cautionary statement
This announcement contains forward-looking statements that are
based on current expectations or beliefs, as well as assumptions
about future events. These forward-looking statements can be
identified by the fact that they do not relate only to historical
or current facts. Forward-looking statements often use words such
as anticipate, target, expect, estimate, intend, plan, goal,
believe, will, may, should, would, could, is confident, or other
words of similar meaning. Undue reliance should not be placed on
any such statements because they speak only as at the date of this
document and, by their very nature, they are subject to known and
unknown risks and uncertainties and can be affected by other
factors that could cause actual results, and IMImobile's plans and
objectives, to differ materially from those expressed or implied in
the forward-looking statements.
There are a number of factors which could cause actual results
to differ materially from those expressed or implied in
forward-looking statements. Among the factors that could cause
actual results to differ materially from those described in the
forward-looking statements are; increased competition, the loss of
or damage to one or more key customer relationships, the outcome of
business or industry restructuring, changes in economic conditions,
currency fluctuations, changes in laws, regulations or regulatory
policies, developments in legal or public policy doctrines,
technological developments, the failure to retain key management,
or the key timing and success of future acquisition opportunities
or major investment projects.
IMImobile undertakes no obligation to revise or update any
forward-looking statement contained within this announcement,
regardless of whether those statements are affected as a result of
new information, future events or otherwise, save as required by
law and regulations.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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April 24, 2018 02:01 ET (06:01 GMT)
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