IMImobile (LON: IMO), a leading communications software and solutions provider, is pleased to announce the following update ahead of its preliminary results for the year ended 31 March 2019.
Highlights
· Revenue ahead of market expectations, with EBITDA marginally ahead.
· Revenue for the full year is expected to be c. £142m (2018: £111.4m) an increase of 28% of which c. 18% is organic.
· Gross profit is expected to be c. £62m (2018: £50.7m) an increase of over 20%, up from 18% reported at the half year.
o Overall, organic gross profit growth is expected to be c. 7%.
o Strong gross profit growth in Europe and Americas of over 45% (at least 15% organic) with the region contributing over 70% of Group gross profit.
o Both the Asia-Pacific (APAC) region and enterprise business in South Africa delivered strong organic gross profit growth of more than 12% and 20% respectively on a constant currency basis.
o As reported at the interims, the Company experienced headwinds with one specific customer in the Middle East and Africa (MEA) region. The underlying organic growth in Group gross profit excluding this impact was c.13%.
· Adjusted EBITDA for the full year is expected to be over £17.8m (2018: £13.4m) an increase of over 30% year on year.
· Cash conversion at c. 90% with net debt of £7.9m at 31 March 2019 (2018: net cash of £4.3m). This is after completion of the Impact Mobile acquisition during the year, acquired for cash of £16m.
· The number of clients that provide more than £500k p.a. revenue increased to 40 (33 in FY18) and clients with revenues between £100k p.a. and £500k p.a. increased to 89 from 43 in the prior year.
· The Company has enhanced its Enterprise cPaaS (communications platform as a service) offering with the recent launch of new communication channels such as WhatsApp for Business and Apple Business Chat.
· Considerable commercial and technical progress made with partners including BT, KCOM, Salesforce and NICE inContact.
· Increasing focus on North American market with good progress made through acquisition of Impact Mobile, which is performing as expected, and additional senior management hires and investment.
Jay Patel, Group Chief Executive of IMImobile, commented: “We are pleased with the strong trading results and momentum we have in the business. This reflects the market dynamics shifting towards more automation and the use of digital channels for delivering better customer experiences. We have a great modular set of consumer engagement products and have invested significantly in IMIconnect, our Enterprise cPaaS offering, that we believe, in its category, is one of the best globally.
We have delivered strong growth in gross profit of over 20% and EBITDA of over 30% with high levels of cash generation and enhanced operating leverage whilst making strategic progress with several key partners and in new geographies.
We enter the new trading year with strong momentum and are confident in delivering continued organic growth across all parts of the business.”
IMImobile (LON:IMO) is a cloud communications software provider whose solutions enable enterprises to automate digital customer communications and interactions to improve customer experience and reduce operating costs. Gresham House Strategic PLC (LON:GHS) has a 12.0% ownership of IMImobile as of June 2018.
