IMImobile PLC Trading Update

IMImobile PLC (LON:IMO), a cloud communications software and solutions provider, today announced 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 functionality1 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.”

 

Gresham House Strategic PLC (LON:GHS) has a 42.1% ownership of IMImobile PLC, correct as of 31 January 2018 month end NAV announcement, released 1 February 2018.

Click to view all articles for the EPIC: ,
Or click to view the full company profile:
Facebook
Twitter
LinkedIn
IMImobile

More articles like this

Gresham House plc

Augean’s industrial services

Augean offer a wide range of Industrial Services and deploy teams of skilled operatives with equipment to all areas of the UK, enabling us to undertake a variety of projects. All projects are completed in a

Gresham House plc

Radiation protection supervisors

Work scope – Augean North Sea Services (ANSS) were contracted to deconstruct, dispose and decontaminate the internals of a NORM contaminated separator vessel. With the use of strict permitted accessand fully NORM trained industrial tank cleaning

Gresham House plc

Will the stamp duty holiday be extended?

Well, the stamp duty holiday has certainly worked. The government launched the tax break as part of its “Plan for Jobs” in July and by September reported a 20% increase in property transactions as well as

Gresham House plc

Is now the time to invest in a UK holiday let?

Despite lockdown 2.0, the holiday let market has remained robust. Some lenders and brokers have reported that mortgage enquiries for holiday properties has hit the roof. While you might think a global pandemic and UK recession

Gresham House plc

Infrastrata Investor Roadshow event

InfraStrata plc (LON:INFA) is a London Stock Exchange-listed firm focused on the development and commercialisation of advanced energy infrastructure. Gresham House Strategic PLC (LON:GHS) has an investment in Infrastrata.

Gresham House plc

Gresham House Strategic sees strong NAV recovery

Gresham House Strategic plc (LON:GHS) has announced its unaudited half year results for the period ended 30 September 2020. Financial highlights Strong NAV recovery, with NAV Total Return of 15.1% in the period versus the FTSE

Gresham House plc

GP stakes investing

An investor looking for exposure to alternative assets generally invests in alternative investment funds and may also co-invest in the funds’ portfolio companies. But a third option has hove into the public spotlight in the last

Gresham House plc

Unsustainable risks? Regulatory climate change for AIFMD

The Alternative Investment Fund Management Directive (“AIFMD”) was implemented in the EU in 2013, to regulate the alternative investment industry, chiefly as a result of the Global Financial Crisis. Fast forward seven years, and this directive

Gresham House plc

Edison’s bull/bear game: Gresham House Strategic

In this instalment of Edison’s bull/bear game, Elliott Berstock, Edison’s managing director of European investor relations, asks Richard Staveley, fund manager at Gresham House Strategic, for his stance on value/growth stocks, the gold price, FANG stocks, convertible bonds,

Gresham House plc

Acquisition by MJ Hudson of Bridge Consulting and subsidiaries

International asset management consultancy, MJ Hudson, announces that it has acquired Bridge Group, a funds service provider based in Ireland, conditional on Irish regulatory approval. The acquisition will build on MJ Hudson’s specialist funds operations in