IMImobile PLC (LON:IMO), a cloud communications software and solutions provider, today announced its consolidated interim results for the six months ended 30 September 2018.
The Company is pleased to report it has continued to maintain strong momentum and has now achieved a three-year gross profit CAGR of 21% and a five-year gross profit CAGR of 18%.
Key financial highlights
· Revenue up 26% to £67.2m (2017: £53.1m) (15% organic1)
· Gross profit up 18% to £29.2m (2017: £24.7m) (3% organic1 or 10% organic excluding impact of MTN)
o Strong organic1 gross profit growth from monthly recurring revenues of 18% (excluding impact of MTN)
· Adjusted EBITDA2 up 35% to £7.7m (2017: £5.7m)
· Adjusted profit after tax2 up 40% to £4.7m (2017: £3.3m)
· Loss after tax on a statutory basis of £0.1m3 (2017: profit of £1.0m)
· Diluted adjusted EPS2 up 35% to 6.6p (2017: 4.8p)
· Adjusted cash generated from operating activities of £6.1m representing operating cash conversion4 of 80% (2017: 100%)
· Cash and cash equivalents at 30 September 2018 of £12.0m (31 March 2018: £15.7m)
· Net debt5 at 30 September 2018 of £9.3m (31 March 2018: net cash of £4.3m)
Operational highlights
· Strong period of new client wins in UK: numerous multi-year new contract wins with large enterprise clients in the banking, utilities, retail and logistics sectors
· Enhanced operating leverage: benefitting from past investment in partnerships and R&D – EBITDA margin (adjusted EBITDA / gross profit) up to 26.4% from 23.1%
· Partnership momentum: significant client wins through major partnerships; recognition and deployment in the second half of the year
· Continued investment in innovation: helping businesses explore opportunities with new messaging channels
· Strengthened position in North America: acquisition of Impact Mobile expands operational footprint in the region
· Post period end acquisition: completed acquisition of Express Pigeon, a US-based email marketing platform provider
Jay Patel, Chief Executive Officer of IMImobile PLC, commented:
“The Group has continued to perform well, both on a financial and operational basis. We have a strong position as market leader in the UK, Canadian and South African markets and have seen numerous, multi-year new contract wins in the UK across our core sectors. We are pleased that we have seen 18% organic growth in gross profit from monthly recurring revenues, excluding the known headwinds created by MTN. I am also pleased with the improved operating leverage from past investments made in partnerships and R&D.
The technology and consumer landscapes are evolving as anticipated and given our leading positions in certain markets and sectors, we expect to continue to benefit from these changes in the near-medium term. We have had a strong start to the second half and remain confident about the Group’s prospects for the full year. We expect full year results to be in line with management expectations.”
Gresham House Strategic PLC (LON:GHS) has a 12.0% ownership of IMImobile as of June 2018
