REG - itim Group PLC - Interim Results
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RNS Number : 0795B itim Group PLC 29 September 2025
29 September 2025
itim Group plc
("itim" or the "Company" and with its subsidiaries the Group")
Interim Results for the six months ended 30 June 2025
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 six
months ended 30 June 2025.
Financial Highlights
· Group revenue of £8.0m (HY24: £8.8m; FY24: £17.9m), with booked
recurring revenue of £6.6m (HY24: £6.6m; FY24: £13.4m),
representing 83% of Group revenue (HY24: 75%; FY24: 75%)
· Annual recurring revenue ("ARR")¹ of £13.3m (HY24: £13.2m; FY24:
£13.0m), reflecting annual growth of 1% (HY24: 0%; FY24: -1%)
· Adjusted EBITDA² of £0.4m (HY24: £1.2m; FY24: £2.5m), with
an adjusted EBITDA margin of 5% (HY24: 13%; FY24: 14%)
· (Loss)/profit before tax of £(0.7)m (HY24: £(0.1)m; FY24: £0.2m)
· Adjusted earnings per share³ of (1.6)p (HY24: 0.18p; FY24: 1.09p); basic
earnings per share of (1.6)p (HY24: (0.27)p; FY24: 0.64p)
· Net cash of £1.8m (HY24: £3m; FY24: £3.8m)
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
Ali Athar, CEO of itim, commented: "I am pleased to report a resilient first
half performance with good recurring revenue and positive EBITDA In a tough
retail climate marked by rising costs and fragile consumer confidence. While
project cycles have lengthened, we are seeing continued interest in our
solutions as retailers seek smarter ways to drive efficiency and margin. Our
upcoming AI platform, built on Agentic architecture, will further strengthen
our offering, helping clients unlock value across sales, productivity and
stock. As investment appetite returns, we are confident our pipeline will
convert, reinforcing our role as a trusted partner in retail transformation."
Enquiries:
Itim Group plc Ali Athar, CEO 0207 598 7700
Ian Hayes CFO
Zeus (NOMAD & Broker) Katy Mitchell 0203 829 5000
Harry Ansell
Darshan Patel
IFC Advisory Graham Herring 0207 3934 6630
Florence Staton
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 Board is pleased to present the Group's half year results for 2025 in
which the business reports good annual recurring revenue and a positive
EBITDA.
The first six months of the year have been influenced by the cost pressures
currently affecting the retail sector. These pressures have inevitably
affected the pace of activity within our business, with a number of projects
being pushed back, particularly those involving substantial investment
commitments. Whilst the Group has not lost ongoing business, delays in
decision-making have occurred and naturally impacted performance. At the same
time, it is important to note that the interim results for 2024 included a
significant contribution from large-scale project revenues generated through
The Entertainers partnership with Tesco.
It is widely acknowledged that UK retailers are battling with what has been
described as a "perfect storm" of cost pressures. These include an increasing
burden of taxation and regulatory levies, continued upward pressure on wage
and employment costs, and the broader impact of inflationary forces.
Collectively, these factors are eroding margins, suppressing profitability,
and forcing retailers to reassess both pricing strategies and investment
priorities.
Consumer confidence, meanwhile, remains fragile. Persistent inflation, rising
household debt and ongoing concerns over job security, have constrained
discretionary spending. Retailers, faced with the difficult balance of
managing higher costs while maintaining competitiveness, have passed some of
these pressures onto consumers through increased pricing. As a result, demand
dynamics on the high street remain subdued, and the outlook for the crucial
Christmas trading period is uncertain. In turn, these uncertainties have led
many retailers to defer or scale back investment in longer-term transformation
programmes.
Within this difficult trading environment, itim's business model is considered
an attractive proposition providing an effective way for retailers to mitigate
rising costs and invest in operational efficiency and technology. Areas such
as process automation, digital transformation, and supply chain optimisation
are increasingly being recognised as essential levers for long-term
resilience. Encouragingly, the Group is seeing evidence of retailers adopting
these strategies offered by our products and services.
The current pipeline of new opportunities is encouraging and reflects both the
relevance of itim's solutions and the confidence in its ability to deliver
value. That said, given the current macro and retail environments, projects
are taking longer to close, and some have been pushed back into later periods.
In the short term, the Group remains disciplined in managing costs and has
taken appropriate action to minimise the impact on profitability while
protecting its capacity to deliver ensuring that the Group remains well
positioned to respond to new levels of interest.
The Group is continuing its focus on machine learning and the use of advanced
mathematics in building systems. This year, itim will be launching its AI
platform based on an Agentic AI architecture, where a number of of 'agents'
will sit on top of our UNIFY platform to help retailers identify opportunities
to optimise sales, productivity, margin and stock.
In conclusion, while the present trading environment remains challenging the
Group is experiencing increased levels of interest for its services. The Board
is confident in its positioning within the marketplace with the need for
retail technology that can drive profitability and business transformation
being greater than ever. The group's proposition is highly aligned to the
needs of retailers facing cost pressures, reinforcing its competitive position
in the marketplace. itim is currently seeing its largest pipeline of
opportunities in its history, and as investment cycles recover, the board is
confident of converting a number of these into increased revenues, albeit with
some uncertainty around the exact timing.
Consolidated Statement of Comprehensive Income
for the half-year ended 30 June 2025
Six month period ended Six month period ended Year ended
30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited Audited
Notes £000 £000 £000
Continuing operations
Revenue 7,998 8,835 17,908
Cost of sales (5,343) (5,451) (10,724)
Gross profit 2,655 3,384 7,184
Administrative expenses (2,277) (2,233) (4,716)
EBITDA 378 1,151 2,468
Amortisation of intangible assets (751) (702) (1,400)
Depreciation (30) (30) 62
Depreciation of leased assets (262) (299) (594)
Profit/(Loss) from operations (665) 120 412
Exceptional - (141) (141)
Other interest - right of use assets (42) (52) (96)
Loss before taxation (707) (73) 175
Taxation 207 (12) 25
Loss for the period/year (500) (85) 200
Other comprehensive income
Exchange differences on retranslation of foreign operations 82 (57) (113)
Total comprehensive income for the period/year net of tax (418) (142) 87
Earnings per share
Basic 2 (1.60p) (0.27p) 0.64p
Diluted 2 (1.60p) (0.27p) 0.57p
Consolidated Statement of Financial Position
as at 30 June 2025
As at As at As at
30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited Audited
£000 £000 £000
Non-current assets
Intangible assets 11,332 11,163 11,229
Plant and equipment 127 316 254
Right-of-use assets 690 938 770
Deferred tax 2 - -
12,151 12,417 12,253
Current assets
Trade and other receivables 4,898 4,062 3,636
Cash and cash equivalents 1,837 2,976 3,795
6,735 7,038 7,431
Total assets 18,886 19,455 19,684
Current liabilities
Trade and other payables (6,185) (6,146) (6,273)
Right-of-use liability (283) (308) (284)
(6,468) (6,454) (6,557)
Non-current liabilities
Trade and other payables due in more than one year (73) (248) (183)
Right-of-use liability (459) (669) (535)
Deferred tax (665) (697) (793)
(1,197) (1,614) (1,511)
Total liabilities (7,665) (8,068) (8,068)
Net Assets 11,221 11,387 11,616
Capital and reserves
Called up share capital 1,571 1,561 1,561
Share premium account 7,411 7,398 7,398
Share options reserve 513 513 513
Capital redemption reserve 1,103 1,103 1,103
Foreign exchange reserve 63 37 (19)
Retained profit/(loss) 560 775 1,060
Shareholders' funds 11,221 11,387 11,616
Consolidated Statement of Cash Flow
for the half-year ended 30 June 2025
Six month period ended Six month period ended Year ended
30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited Audited
£000 £000 £000
Cash flows from operating activities
Profit after taxation (500) (85) 200
Adjustments for:
Taxation (207) 12 (25)
Other interest on leases 42 52 96
Amortisation and depreciation 1,043 1,031 2,056
Cash flows from operations before working capital changes 378 1,010
2,327
Movement in trade and other receivables (1,115) 1,397 1,528
Movement in trade and other payables (90) (237) (55)
Cash generated from operations (827) 2,170 3,800
Corporation tax (28) (18) 377
Net cash flow from operating activities (855) 2,152 4,177
Cash flow from investing activities
Capital expenditure on intangible assets (793) (797) (1,601)
Purchase of plant and equipment (5) (6) (61)
Net cash flow from investing activities (798) (803) (1,662)
Cash flow from financing activities
Interest repayments (30) - (50)
Payment of lease liabilities (303) (293) (589)
Share capital issued 23 - -
Net cash flow from financing activities (310) (293) (639)
Net increase/(decrease) in cash and cash equivalents (1,963) 1,056 1,876
Cash and cash equivalents at beginning of year 3,795 1930 1,930
Exchange (losses)/gains on cash and cash equivalents 5 (10) (11)
Cash and cash equivalents at end of year 1,837 2,976 3,795
Consolidated Statement of Changes in Equity
as at 30 June 2025
Share Share Share option reserve Capital Redemption Reserve Foreign exchange reserve Retained Total
capital Premium Earnings Equity
£000 £000 £000 £000 £000 £000 £000
At 1 January 2025 1,561 7,398 513 1,103 (19) 1,060 11,616
Comprehensive income for the year - - - - - (500) (500)
Foreign exchange movement - - - - 82 - 82
Total comprehensive income - - - - 82 (500) (418)
Shares issued in period 10 13 - - - - 23
At 30 June 2025 (unaudited) 1,571 7,411 513 1,103 63 560 11,221
At 1 January 2024 1,561 7,398 513 1,103 94 860 11,529
Comprehensive income for the year - - - - - (85) (85)
Foreign exchange movement - - - - (57) - (57)
Total comprehensive income - - - - (57) (85) (142)
At 30 June 2024 (unaudited) 1,561 7,398 513 1,103 37 775 11,387
At 1 January 2024 1,561 7,398 513 1,103 94 860 11,529
- - - - - 200 200
Comprehensive income for the year
Foreign exchange movement - - - - (113) - (113)
Total comprehensive income - - - (113) 200 87
At 31 December 2024 (audited) 1,561 7,398 513 1,103 (19) 1,060 11,616
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 2025
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 2025 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 2024, 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 2024 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 2025, and will be adopted in the 2024 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 24(th) September 2025.
The results for the six months to 30 June 2025 and the comparative results for
the six months to 30 June 2024 are unaudited. The figures for the period
ended 31 December 2024 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.
6 months ended 30 June 2025 6 months ended 30 June 2024 Year ended
Unaudited Unaudited 31 December 2024
Audited
£000 £000 £000
Profit/(Loss) after tax for the year (500) (85) 200
Exceptional items - 141 141
Share option charge - - -
Adjusted loss after tax for the year (500) 56 341
Weighted average number of shares
Basic - 000 31,304 31,211 31,211
Potentially dilutive share options - 000 3,546 3,657 3,657
Diluted average number of shares - 000 34,850 34,868 34,868
Earnings per share:
Basic - pence on continuing operations (1.60) (0.27) 0.64
Diluted - pence on continuing operations (1.60) (0.27) 0.57
Adjusted earnings - Basic - pence on continuing operations (1.60) 0.18 1.09
Adjusted earnings - Diluted - pence on continuing operations (1.60) 0.16 0.98
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