IMImobile PLC – IMO – Interim Results

IMImobile PLC – IMO – Interim Results

IMImobile PLC, a cloud communications software and solutions provider, announces its consolidated unaudited interim results for the six months ended 30 September 2020.

 

The Group is pleased to report it has delivered strong momentum in gross profit and particularly encouraging progress in North America. It has now achieved a five-year gross profit compound annual growth rate (CAGR) of 19%.

 

Key financial highlights

·     

Performance in line with Board expectations

·     

Revenue down 9% to £75.9m, (2019: £83.0m) driven by a change in the business model with one customer, which has had a significant positive impact on gross profit margin, increasing to 51.3% (2019: 42.4%) 

·     

Gross profit up 11% to £39.0m (2019: £35.2m)

Gross profit growth of 24% in cloud communication products, organic1 growth flat. This division now accounts for c.90% of Group gross profit

Strong performance in the Americas with organic1 cloud communications gross profit growth of 16% in the region

·     

Adjusted EBITDA2 up 26% to £12.4m (2019: £9.8m)

·     

Adjusted profit after tax2 up 30% to £6.8m (2019: £5.2m)

·     

Profit after tax on a statutory basis up 301% to £2.8m (2019: £0.7m)

·     

Adjusted diluted EPS2 up 12% to 7.7p (2019: 6.9p)

·     

Adjusted 'cash generated from operating activities'2 of £8.4m representing operating cash conversion3 of 68% (2019: 127%) due to a change in timing of collection from a major client

·     

Net cash4 of £2.0m as at 30 September 2020, following the Group's share placing in April which raised gross proceeds of £22.2m.

 

Operational highlights

·     

Maintained organic performance in the core cloud communications product division

·     

Strong organic growth delivered in the Americas:

30 new customer logos

Expansion of work with current clients

Very healthy pipeline of opportunities across multiple sectors

·     

Significant recovery in the UK Healthcare and small and medium-size business (SMB) divisions in Q2, following earlier COVID-19 related decline

·     

Innovation delivered through launch of Business Messages and Verified Calls by Google and new communication channels being adopted by a number of major clients

·     

Partnership programme continues to build momentum with agreements signed with two leading, global mobile operators

·     

26 clients projected to provide gross profit of above £500k per annum (full year to 31 March 2020: 24 clients)

·     

Continued headwinds in the Operator VAS & Payments division as expected. The Board is implementing a strategic review of these activities.

 

Current trading and Outlook

·     

The Group has delivered a resilient performance in the period with recovery in Q2 in areas impacted by the COVID-19 pandemic and the outlook for the current full year remains in-line with the Board's expectations.

·     

Increasing momentum from digital transformation trends, the full year impact of deployments this year combined with new client wins in the North American market and an exciting pipeline of opportunities, mean that the Group is well positioned to deliver an acceleration of growth and the Board expects the trading performance for FY22 to be materially ahead of its previous expectations.

 

1 Excluding acquired business of 3Cinteractive and Rostrvm in the current and prior years

2 Adjusted for costs which management do not consider reflect underlying business performance - 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 adjusted cash generated from operations (see note 6) as a percentage of adjusted EBITDA

4 Cash and cash equivalents net of bank borrowings (excluding capitalised borrowing costs)

 

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

 

"We are very pleased with the resilience of the business during the past six months, despite the current external circumstances. This resilience is testament to our staff, technologies, and the mission-critical nature of the interactions we deliver for our clients. Continued growth has been driven by strategic execution against our objective to enter the North American market. We are particularly pleased with progress in new logo acquisition in the US and in Europe. The Board remains confident for the future and that the Group is well positioned for an acceleration of growth."

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