IMImobile PLC (LON:IMO), a cloud communications software and solutions provider today announces its Preliminary Results for the year ended 31 March 2017. These Preliminary Results are an abridged statement of the full annual report including the audited financial statements approved by the directors on 27 June 2017.
Key financial highlights of the Group
· Revenue up 24% to £76.1m (2016: £61.6m) of which 15% is organic1 growth
· Gross profit up 19% to £43.4m (2016: £36.5m) of which 14% is organic1 growth
· Operating profit up 19% to £4.9m (2016: £4.1m)
· Adjusted EBITDA2 up 7% to £11.5m (2016: £10.7m)
· Adjusted profit after tax2 up 10% to £7.5m (2016: £6.8m)
· Profit after tax on a statutory basis of £4.1m (2016: £2.2m)
· Maintained momentum since IPO with 3 year revenue CAGR of 21%, 3 year gross profit CAGR of 16% and 3 year adjusted EBITDA2 CAGR of 17%
· Good contribution from both the Europe and Americas and the India and SEA regions with gross profit growth of 15% and 31% respectively
· Cash generated from operations of £11.9m (2016: £10.6m) with strong cash conversion3 of 104% (2016: 99%)
· Cash and cash equivalents at 31 March 2017 of £14.7m (2016: £15.0m) after completion of the Infracast acquisition which utilised net cash of £5.5m
Operational highlights of the Group
· Organic growth across all regions and business units
· New major blue chip client wins in all regions including multi-territory mobile operator Group, Telenor
· Renewal of all major contracts falling due in the period, including the Group’s largest customer, MTN
· Good progress with Textlocal and Archer acquisitions
· Early successes from investment in partnership programme including multi-year contract with BT
· Acquisition of Infracast, giving the enlarged group a market leading position in the UK retail banking sector
· The Company has started the process to effect a capital reorganisation to enable share buybacks and / or dividends in the future.
1 Excluding the Infracast and Archer results.
2 See note 6 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 13) as a percentage of adjusted EBITDA.
Outlook
The 2018 financial year has started well with trading in line with expectations. We have good earnings visibility thanks to our long-standing client relationships, pipeline of new deployments and high mix of recurring, repeating and transactional revenues.
We believe that, as managing mobile and digital touchpoints become critical for all organisations, we can continue to grow our client base across all regions and increase the size of each relationship. We intend to accelerate growth through our partnership strategy, including seeking out international partners, and are increasingly confident after the early wins we have had this year.
Jay Patel, Chief Executive Officer of IMImobile PLC, commented: There continues to be an overwhelming need for companies such as banks, mobile operators, retailers, utilities and major brands to invest in improving customer experience, predominantly through digital channels. Our strategy is to be at the heart of these digital interactions for our clients, and we believe that the agile and evolving nature of our product portfolio aligns well with the market’s needs.
This demand for our services has allowed us to significantly increase our recurring revenue base and continue to both invest in product development and deliver profitable, cash generative growth. We will continue to invest further in marketing and product development to establish a leading position in this growth market.
An analyst meeting will be held at 9.30am today at the offices of Redleaf Communications. To attend please contact Redleaf Communications.
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 IMI’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.
IMI 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.
Gresham House Strategic PLC (LON:GHS) has a total interest of 13.5% in IMImobile PLC, correct as of 28 April 2017 month end NAV announcement, released 01 May 2017
