IMImobile PLC Interim Results

IMImobile PLC (LON:IMO), a cloud communications software and solutions provider, today announced its consolidated interim results for the six months ended 30 September 2017.

The Company is pleased to report it has continued to maintain its upward momentum since IPO in 2014. IMImobile has now achieved a three-year gross profit CAGR of 22%, and 10% organic¹ gross profit growth during the period.

Key financial highlights

·     Revenue up 48% to £53.1m (2016: £36.0m) (12% organic¹)

·     Gross profit up 22% to £24.7m (2016: £20.2m) (10% organic¹)

·     EBITDA up 8% to £5.7m (2016: £5.3m)

·     Adjusted profit after tax up 3% to £3.3m (2016: £3.3m)

·     Profit after tax on a statutory basis up 3% to £1.0m (2016: £1.0m)

·     Diluted adjusted EPS up 1% to 4.8p (2016: 4.8p)

·     Cash generated from operating activities of £5.7m representing operating cash conversion³ of 100% (2016: 122%)

·     Cash and cash equivalents at 30 September 2017 of £15.4m (31 March 2017: £14.7m)

¹ Excluding the impact of the Infracast acquisition in March 2017

² See note 5 for details of adjusted performance measures, adjusting items and a reconciliation of statutory results to adjusted results.

³ Cash conversion is defined as cash generated from operations (see note 6) as a percentage of adjusted EBITDA.

Operational highlights

·    Continued organic growth: 10% organic gross profit growth; the Group has reported organic growth in every reporting period since IPO in 2014

·    Acceleration of partnership activities: new commercial and technical partnerships being established to broaden distribution of our intellectual property

·    Consolidated position in the UK market: established market leader in digital and mobile notifications in key consumer verticals – financial services, utilities, logistics and telecoms

·    Strong growth in South East Asia: deployments under new relationship with Telenor group progressing well

·    Synergies from acquisitions starting to progress: cross-selling of core IMImobile products to clients of Textlocal, Archer and Infracast

·    US investment: first enterprise contract with one of the largest US distribution and logistics services companies and, post period end, acquired Sumotext Corporation to target the US enterprise market

Jay Patel, Chief Executive Officer of IMImobile PLC, commented:

“The Group has continued to perform well, both financially and operationally, and delivered another period of profitable, cash generative growth. We have consolidated our leading position in the UK, achieved very strong organic gross profit growth in India and South East Asia, and despite known headwinds in Middle East and Africa, achieved 12% organic revenue growth across all regions. Post period, IMImobile also completed the acquisition of Sumotext, providing a platform to launch IMImobile’s product offering to the enterprise market in the US.

“This growth has been driven by the continued global demand for cloud-based solutions that can help deliver digital transformation, automation and cost-cutting. IMImobile has created a market leading product suite that focuses on real time, interactive customer communications and service automation and we are excited about the benefits that new emerging technologies can deliver.

“We remain confident about the Group’s prospects for the remainder of the year. We expect revenue and gross profit to be in line with market expectations that were recently upgraded following the trading update given on 1 November and underlying EBITDA to be in line with expectations.“

 

An analyst meeting will be held at 9.30am today at the offices of Redleaf Communications, 1st Floor, 4 London Wall Buildings, Blomfield Street, EC2M 5NT. To attend please contact Redleaf Communications.

Gresham House Strategic PLC (LON:GHS) has a 12.1% ownership of IMImobile PLC, correct as of 31 October 2017 month end NAV announcement, released 31 October 2017