itim Group steady revenue growth, increased ARR & growth in existing customer base

itim Group plc (LON:ITIM), a SaaS based technology company that enables store-based retailers to optimise their businesses to improve financial performance, has provided the following unaudited trading update for the financial year ended 31 December 2022.

Financial highlights

·    Increased revenues are in line with current market expectations at approximately £14.0m (2021: £13.5m)

·    Annual recurring revenue at the year-end is approximately £13.0m (2021: £11.1m)

·    EBITDA for the year is expected to be circa £0.2m below current market expectations at approximately £0.2m (2021: £2.2m) with a similar impact in the pre-tax loss outturn

·    The Group ended the year with cash balances of £3.9m with no outstanding loans.

In the year ended 31 December 2022, the Group showed steady revenue growth of 4.5% increasing from £13.4m to £14.0m, with subscription revenues representing 84% of total turnover (2021: 77%). Since the IPO in mid-2021, the Group has ramped up its sales effort and ARR which increased from £11.1m in 2021 to £13.0m in 2022. The Group’s pipeline for 2022 was strong, although contract conversion continued to be a risk given the prevailing economic climate while sales were challenged by a slowdown in decision-making at the enterprise level. Many of the Group’s prospects have moved into 2023 and with the macro-economic challenges of 2022, it was too early to see the benefits of the investment feeding through to top line performance. 

The Group has signed two new retailers during the year and has also experienced growth in the existing customer base. This year, management has put in place a streamlined team which will target a smaller number of high-value, high-margin deals, with a focus on developing enterprise corporate accounts to improve long-term ARR. With close to 80 customers using all or some elements of our Retail Suite platform, this provides itim with a stable recurring revenue base and a good mix of UK and international growing revenues.

In the current market conditions, the Group’s core products have continued to perform well but risk remains around the pace of growth of our enterprise offering, where budgets are under pressure.

After admission to trading on AIM, the Board adopted a strategy that most SAAS businesses use, which is to finance projects ourselves to drive growth by offering to do the transition onto our platform at no cost. Consequently, the Group increased its cost base to allow for this and EBITDA subsequently fell to £0.2m from £2.2m in 2021. The Board increased its investment in its head count to support implementation projects in 2023, in addition, wage inflation has been higher in our sector because of the acute shortage of technology resources.

itim’s focus is now on improving margin and cash generation with the Group targeting an improvement in the adjusted EBITDA margin during the current financial year before moving substantially higher from 2024. To do so, the Company will be pivoting away slightly from the strategy proposed during IPO and focussing on achieving greater revenues and increasing our margins for our services that will consequently improve EBITDA over time.

Ali Athar, itim Group Chief Executive officer, commented“I am pleased to report steady revenue growth, increased ARR, as well as growth in our existing customer base for the year ended 31 December 2022. The Board has invested heavily in the period which has impacted the bottom line in the short term, however, the Group’s renewed focus is on margin enhancement and cash generation as it looks to further build shareholder value. Selling additional services into our considerable existing client base is bearing fruit as we continue to see an increased demand for our products. The Board will continue with investments in its next-generation products during 2023 and expects to experience an acceleration in ARR growth in the UK. As a result, we are confident about the outlook for the business.”

Click to view all articles for the EPIC:
Or click to view the full company profile:
Share on facebook
Share on twitter
Share on linkedin
itim Group

More articles like this

itim Group plc

Buy now, pay later explodes in grocery

Online grocery shoppers are turning to buy now, pay later (BNPL) programs offered by retailers at a blistering pace as they cope with turbulent economic conditions, according to Adobe Analytics data released Wednesday. The percentage of online BNPL transactions

itim Group plc

itim appoints new director the Board

The chief executive of a brand management and licensing agency business has joined the board of listed retail technology company itim Group. Damian Hopkins has been appointed to the Board of Directors as Non-Executive Director, effective immediately. Damian

itim Group plc

Retail sales up 7.7% in February

Retail sales in the categories followed by Retail Dive were robust in February, rising 7.7% year over year, with e-commerce up 8.5%, according to numbers released Wednesday by the U.S. Department of Commerce. February tends to be the slowest month

itim Group plc

5 tech investments that reflect real-world retail trends

1. The in-store experience is ripe for both basic and inventive improvements. Looking at market size and where traditional retailers are going to get the largest return on investment, improving the in-store experience is still, by far, the

itim Group

itim Group appoints Damian Hopkins as Non-Executive Director

itim Group plc (LON:ITIM), a SaaS based technology company that enables store-based retailers to optimise their businesses to improve financial performance, has announced the appointment of Damian Hopkins to the Board of Directors as Non-Executive Director, effective immediately.

itim Group

What brands need to know: Social marketing in 2023

Search and display advertising aren’t the only parts of the marketing landscape that have changed over the past three years. As various social platforms have waxed and waned and mechanics and dynamics have shifted, brands are making new choices about

itim Group

US retailers prepare for a new normal this year

American retail executives are hoping for stabilisation in 2023 after a rocky 2022 beset companies with continuous challenges, including unpredictable customer demand. The week in retail earnings in the US made clear that cost of living and inflationary

itim Group

Steady growth for retail technology firm

itim Group, a technology company that helps store-based retailers to improve financial performance and compete with online rivals, has reported “steady revenue growth” in 2022. However, EBITDA is set to fall below current expectations. In a trading update,

itim Group

Sustainable growth for retail tech company

The itim Group has published a trading update on its performance in 2022 itim Group, a technology company that helps brick-and-mortar retailers improve their financial performance and compete with online rivals, has reported “steady sales growth” for 2022.

itim Group

What lies ahead for retail in 2023

The new year has barely begun and yet it’s already been full of major retail happenings, from Party City’s bankruptcy to ongoing layoffs that are hitting retailers and manufacturers of all stripes. Inflation and the threat of a recession have caused consumers to pull back on

itim Group

Retail Execs give their 2023 supply chain predictions

Throughout the COVID-19 pandemic, retailers have had to quickly adapt to supply chain bottlenecks, economic uncertainty, and a hiring crisis. The rise of eCommerce has also forced retailers to explore new technologies to stay competitive. With so much

itim Group

The top retail trends for 2023

The retail industry is reshaping the shopping experience in 2023, redefining not only how we shop and sell, but where we shop and what we buy (a mimosa while shopping, anyone?). The cutting-edge retail trends below are guiding

itim Group

10 Retail industry predictions for 2023

If someone had asked me to predict 2022’s “word of the year,” I would have guessed “metaverse.” Maybe “cryptocurrency.” There is absolutely no chance I would have conjectured “goblin mode.” But it turns out the slang term that

itim Group

Meet the team… Marco Gomes

What is your ROLE at itim and what does it involve? I’m currently the Delivery Director. The Delivery department is responsible forimplementing the Profimetrics Solutions on our customers. My responsibility involvesoverseeing and supporting the Delivery teams on their

itim Group

What retailers can expect from consumers this year

The pandemic may be mitigated thanks to public health measures like vaccines, inflation may be on the wane and supply chain woes may be easing somewhat. But 2023 is nevertheless set to be defined by uncertainty, according to

itim Group

Retail technology will improve overall shopping experience

According to research conducted by Shekel Scales at NRF 2023, the majority of consumers, 90%, believe that technology will greatly enhance their shopping experience. The survey, which was conducted using SurveyMonkey, gathered responses from 573 participants and focused

itim Group

Clienteling enables sales teams to drive repeat business

A shift in retail is moving faster than any other trend we have witnessed that customer interest is moving from products to relationships. This shift is great news for retailers if they know how to adapt to their customer wants.

No more posts to show