28 September 2023

itim Group plc

("itim" or the "Company and with its subsidiaries the Group")

Interim Results for the six months ended 30 June 2023

itim Group plc (AIM:ITIM) a SaaS based technology company that enables store based retailers to optimise their businesses to improve financial performance, is pleased to announce its unaudited interim results for the 6 months ended 30 June 2023.

Financial Highlights

Full year numbers quoted above are audited and half year numbers quoted above are unaudited

1. Annual recurring revenue

2. EBITDA has been adjusted to exclude share-based payment charges, exceptional items, along with depreciation, amortisation, interest and tax from the measure of profit.

3. The profit measure has been adjusted to exclude exceptional items and share option charge

Enquiries:

ABOUT ITIM

itim was established in 1993 by its founder, and current Chief Executive Officer, Ali Athar. itim was initially formed as a consulting business, helping retailers effect operational improvement. From 1999 the Company began to expand into the provision of proprietary software solutions and by 2004 the Company was focused exclusively on digital technology. itim has grown both organically and through a series of acquisitions of small, legacy retail software systems and associated applications which itim has redeveloped to create a fully integrated end to end Omni-channel platform.

CEO Statement

The Group is pleased to report an increase in revenue in the period despite the well documented challenging market conditions for retail companies.

Revenue for the six month period was £7.4m (HY22: £6.8m) an increase of 9%, of which recurring revenues were £6.4m (HY22: £5.6m) representing 86% of sales and underpinning future sales. Adjusted EBITDA (EBITDA excluding share-based payment charges and exceptional items) fell to a loss of £0.2m (HY22: £0.3m) as a result of investment in R&D and in building and protecting our staff base. Cash balances totalled £2.7m at the period end (FY22: £5.3m) reflecting investment in anticipated product development. Adjusted loss per share was 3.02p (HY22: loss 1.2p).

The wider retail market has remained challenging for most operators however there are signs that omni channel retailers are beginning to fare better than their peers. With this in mind, the Group relaunched its consultancy business as a complement to its technology offering and to enable our customers to gain the maximum benefit from it.

The Group continues to benefit from its well established client base with 80 customers resulting in strong recurring revenues. Whilst new business remains a priority, the Group has significant opportunity to upsell and cross sell within its customer base enabling organic growth.

The Directors believe that the investment in the business over the past two years has positioned itim for future growth, created essential USPs in the market and broadened its offering with the potential to increase revenues from new and existing customers.

As a result of this investment and in the Directors' opinion:

1.     itim is one of a few companies that can deliver a single unified sales (commerce) platform to support omni-channel retailers. Retailers no longer need to have separate platforms for selling in stores (EPOS), or selling online (e-commerce), or selling to B2B, or wholesale customers - itim can support all these in one platform.  This is seen as a significant USP for omni channel retailing.

2.     itim has enhanced its merchandising, stock management and optimisation solutions, again to support retailers selling across multiple channels.  Numerous sales channels makes this much more complex, which itim is well positioned to be able to address.

3.     itim is a market leader in Price and Promotions optimisation helping retailers increase cash generation, by either reducing the markdowns and discounts they give away or improving recoveries from suppliers through its advanced invoice matching, supplier funding tracking and a supplier payments platform.

4.     itim is a leader in improving digital supplier collaboration through a series of portal applications built on its Electronic Data Interchange history.  This is coming to the fore due to the rise in marketplaces.

The Board is resolutely focused on profitability and creating shareholder value and is taking the necessary steps to reduce investment in product, driving services revenues and returning the business to cash generation.  Whilst this will impact the rate of subscription revenue growth it should result in higher margins and increased profitability. 

Finally, I would like to thank our employees and our partners for the continued support they give to this business and the commitment and faith they show that we will be a successful business.

Consolidated Statement of Comprehensive Income

for the half-year ended 30 June 2023

Consolidated Statement of Financial Position

as at 30 June 2023

 Consolidated Statement of Cash Flow

for the half-year ended 30 June 2023

Consolidated Statement of Changes in Equity

as at 30 June 2023

 Notes to the Financial Information

1.            General information

itim Group plc is a public limited Company ("Company") incorporated in the United Kingdom under the Companies Act 2006 (registration number 03486926). The Company is domiciled in the United Kingdom and its registered address is 2^nd Floor, Atlas House, 173 Victoria Street, London SW1E 5NH. The Company's ordinary shares are admitted to trading on the AIM market of the London Stock Exchange ("AIM").

The Group's principal activities have been the provision of technology solutions to help clients drive improvements in efficiency and effectiveness. 

The Group's interim report and accounts for the six months ended 30 June 2023 have been prepared using the recognition and measurement principles of International Financial Reporting Standards and Interpretations as endorsed by the European Union (collectively "Adopted IFRS").

These interim financial statements for the six months ended 30 June 2023 have been prepared in accordance with the AIM Rules for Companies and should be read in conjunction with the financial statements for the year ended 31 December 2022, which have been prepared in accordance with IFRS as adopted by the European Union. The interim report and accounts do not include all the information and disclosures required in the annual financial statements.

The interim report and accounts have been prepared on the basis of the accounting policies, presentation and methods of computation as set out in the Group's December 2022 Annual Report and Accounts, except for those that relate to new standards and interpretations effective for the first time for periods beginning on (or after) 1 January 2023, and will be adopted in the 2023 annual financial statements.

The interim report and accounts do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. These interim financial statements were approved by the Board of Directors on 22 September 2023. The results for the six months to 30 June 2023 and the comparative results for the six months to 30 June 2022 are unaudited.  The figures for the period ended 31 December 2022 are extracted from the audited statutory accounts of the Group for that period.

The Directors believe that a combination of the Group's current cash, projected revenues from existing and future contracts will enable the Group to meet its obligations and to implement its business plan in full. Inherently, there can be no certainty in these matters, but the Directors believe that the Group's internal trading forecasts are realistic and that the going concern basis of preparation continues to be appropriate.

2.            Earnings per share

Basic and diluted (loss)/earning per share is calculated by dividing the (loss)/profit attributable to owners of the parent by the weighted average number of ordinary shares in issue during the period. For the avoidance of doubt the deferred shares have been excluded as they have no rights to profits or capital. The Company's share options have a dilutive effect over the two year period.