REG - itim Group PLC - Trading Update and Board change

ITIMAnnouncement

27/02/2025 07:00

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RNS Number : 5915Y  itim Group PLC  27 February 2025

27 February 2025

 

itim Group plc

 

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

 

Trading Update and Board change

 

Trading ahead of market expectations

 

itim Group plc, a SaaS based technology company that
enables store-based retailers to optimise their businesses to improve
financial performance, is pleased to announce an unaudited trading update for
the financial year ended 31 December 2024.

 

Highlights

 

·    Revenues increased to £17.9m* (2023: £16.1m) as a result of new
contract wins and extensions.

 

·    EBITDA for the year is expected to be up 260% and significantly ahead
of expectations at £2.5m* (2023: £0.7m).

 

·    Profit before tax for the year is £175k*, compared to a market
expectation of a £700k loss and a loss in 2023 of £1.1m.

 

·    The Group ended the year with cash balances of £3.8m* (2023:
£1.9m), significantly ahead of market expectations.

 

·    New five-year contract extension with toy retailer, The Entertainer.

 

Board Change

 

·    Michael Jackson has stepped down from the Board after 10 years as
Chairman.

 

In the year ended 31 December 2024, the Group increased revenues from £16.1m
to £17.9m* as a result of new contract wins and extensions. EBITDA improved
significantly increasing 260% from £700k to £2.5m with profit before tax of
£175k compared to a loss the previous year of £1.1m. Cash at the year-end
was £3.8m* compared to £1.9m the previous year. All financial metrics were
significantly ahead of market expectations, reflecting strong operational
performance, sustained demand for itim's products, and the successful
execution of its growth strategy.

 

The Company is also pleased to report that, following the contract win
announced on 23 April 2024, it has signed a new five-year contract extension
with toy retailer The Entertainer, with a new base subscription increase of
more than 30%. The Entertainer has signed this contract to extend its use of
itim's Unify Platform offering to power its partnership with Tesco.

 

Publication of the Company's annual results are anticipated to be released in
May 2025.

 

In addition, following the Board changes announced in September 2024, Michael
Jackson has informed the Company that, following a period of handover, he has
formally stepped down from the Board of Directors with immediate effect.

 

* Unaudited

 

Ali Athar, Chief Executive Officer, commented, "We are extremely pleased with
the strong progress the business has made and are proud to report numbers that
are significantly ahead of market expectations. This achievement is a
testament to the dedication and hard work of our team, as well as the value we
continue to deliver to our customers. The cost efficiencies we offer in the
retail industry have driven increased demand for our products, reinforcing our
position as a trusted partner in the sector. While we remain mindful of the
broader market backdrop and potential challenges ahead, we are confident in
our strategy, our momentum, and the long-term prospects of the business.
Finally, I would like to thank Michael for all his valuable support and
counsel over the years as our Chairman, taking itim through the IPO, and
building the foundations for the next stage of growth."

 

 

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR").  Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

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.

 

 

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