29th February
2024
itim Group plc
("itim" or "the
Company" and together with its subsidiaries "the Group")
Trading Update
"Revenues in line and EBITDA ahead of
market expectations - confident of future
outlook"
itim Group plc, a SaaS based technology
company that enables store-based retailers to optimise
their businesses to improve financial performance, is pleased
to announce an unaudited trading update for the
financial year ended 31 December 2023, ahead of the publication of
the Company's annual results which are anticipated to be released
in May 2024.
Highlights
·
Revenues increased 15% at £16.1m* (2022: £14.0m
(audited)) in line with current market expectations.
·
Annual recurring revenue ("ARR") remained constant
at approximately £13.2m* (2022: £13.2m (audited)) representing 82%
of revenue as the Group focused on EBITDA and cash
generation.
·
EBITDA for the year is expected to be £0.68m*
(2022: £0.21m (audited)) ahead of market expectation of
£0.3m.
·
Total loss before tax for the year is also
anticipated to be ahead of market expectations.
·
Post period end, completion of a significant
multi-million pound contract with Quiz Clothing to implement the
Groups first fashion customer on the end-to-end retail
platform.
·
As expected, the Group ended the year with cash
balances of £1.9m* (2022: £3.9m (audited)) with no outstanding
loans.
In the year ended 31 December 2023,
the Group achieved revenue growth of 15% increasing from £14.0m to
£16.1m* as the business pivoted from focussing on ARR growth to
cash generation with service revenues increasing by 64% and EBITDA
increasing by 126%.
As the culmination of the two-year investment
programme approaches, itim is pleased to
present an update on the progress as it presents an
enhanced product offering, strategically positioning itim for
sustained success within the dynamic retail landscape.
Significant improvements have been
made across the product suite. A notable strategic milestone
includes the integration of fashion into the core Retail Suite,
catalysed by the successful Quiz Clothing contract win,
which went live as announced on the
27th February 2024. Furthermore, targeted
investments in the Profimetrics platform, Chameleon store systems,
Tradeledger for supplier collaboration, and e-commerce have
collectively enhanced the capabilities of itim's offering. The
Company's transformative efforts have led to the
creation of a unified platform, named 'UNIFY.' This rebranding not
only consolidates our products but also better communicates the
essence of our Unified Retailing platform. The
positive feedback from customers demonstrates the real impact of
these improvements, strengthening confidence in itim's go-to-market
strategy.
In alignment with prevailing economic
conditions, itim is currently in the process of "right sizing" its
business. This strategic pivot involves a shift away from 'free'
implementation services towards a continual focus on increasing
services revenues and EBITDA. The emphasis on demonstrating the
real 'benefits' of UNIFY through consulting underscores the
Company's commitment to delivering tangible retail value to the
retail community.
Over the past eight years, itim has
demonstrated a compound average growth rate of 11%. Despite
challenges posed by the recent turbulent macro-economic environment
over the last three years, the Company has navigated these
obstacles with resilience. With a solid foundation laid by the IPO
funding, a further enhancement in the growth rate is anticipated
when global economic conditions improve.
*
Unaudited
Ali Athar,
Chief Executive Officer, commented, "I am
pleased to present a robust set of numbers for the year with
revenue in line and EBITDA ahead of market expectations
demonstrating itim's commitment to improving our strategic
initiatives and positioning the Company for sustained growth and
success. We are delighted to announce the launch
of UNIFY, our unified platform which not only consolidates our
product offerings but also provides a seamless and enhanced
experience in the retail landscape. I would like to express
our gratitude for stakeholders for their continued trust and
support. We are encouraged by recent trading and a significant
pipeline of new opportunities which enables the Board to view the
future with renewed confidence and optimism."
This announcement contains
inside information for the purposes of Article 7 of the UK version
of Regulation (EU) No 596/2014 which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018, as amended ("MAR").
Upon the publication of this announcement via a Regulatory
Information Service, this inside information is now considered to
be in the public domain.
Enquiries:
|
Itim Group plc
|
Ali Athar, CEO
Ian Hayes CFO
|
0207 598 7700
|
|
WH
Ireland (NOMAD & Broker)
|
Katy Mitchell
Harry Ansell
Darshan Patel
|
0207 220 1666
|
|
IFC
Advisory
|
Graham Herring
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.
