REG - itim Group PLC - Trading Update

ITIMAnnouncement

24/02/2022 07:00

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RNS Number : 6310C  itim Group PLC  24 February 2022

24 February 2022

itim Group plc

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

Trading Update

itim Group plc, a SaaS based technology company that
enables store-based retailers to optimise their businesses to improve
financial performance, is pleased to provide the following unaudited trading
update for the financial year ended 31 December 2021.

Group highlights

 

 ·         Successful IPO in June 2021 raising £8m (before expenses)

 ·         Year to 31 December 2021 revenue in line with expectations at circa £13.4m
           (unaudited), illustrating  14% year on year growth (FY 2020: £11.8m)

 ·         Annual recurring revenue ("ARR") at the year-end stood at a record circa
           £11.1m (unaudited), (FY2020: £9.6m) providing a strong revenue base going
           into 2022 (16% year on year growth)

 ·         EBITDA (excluding IPO costs) for the year will exceed market expectations at
           £2.1m (unaudited), demonstrating year on year growth in excess of 40% (FY
           2020: £1.5m)

 ·         The Group ended the year with net cash balances of £6.2m (unaudited) (FY2020:
           £0.2m) with no outstanding loans.

Itim has widened its product offering to its existing client base during the
period creating deeper relationships; and continues to provide a range of its
services to more than 50 major retailers including John Lewis, Sainsbury's, JD
Sports, WH Smith and Majestic Wine amongst many others. Working with many
well-known brands provides valuable insights into the retail industry enabling
the Group to enhance its offering.

itim's expectations that omni-channel retailing excellence allows retailers to
drive organic growth are beginning to be reflected in the performance of those
major high street retailers that have embraced the technology. The Group is
seeing the results in the trading within their customer base, many of whom are
committed to opening more stores due to its success. As such, we believe that
ITIM's technology solutions provide a lasting value added service to its
client base.

In line with our strategy set out at the time of the IPO, itim is continuing
to invest in new product development to further develop our technology
proposition. We previously announced our Chameleon 360 range of store systems,
which power our customers to omni-channel excellence. Furthermore, we expect
to launch the itim-hub later this year, a supplier collaboration portal that
enables our customers to launch their own marketplaces, as well as the 'itim
smart route', enabling the facilitation of last mile delivery.  Additionally,
we are investing in technologies to improve stock distribution to support a
much more complex omni-channel world; supporting despatch from store in
addition to despatch from warehouse.  Finally, we are reviewing the potential
to partner with open-banking Fintec businesses to reduce the costs of supplier
payments, as our software already automatically approves supplier invoices for
30 major retailers in the UK.  Each of these investments will provide
additional enhancements for both our existing and new customers, thereby
providing further differentiation for itim's solution.

Last month we created a new 'retail advisory committee' to help guide the
development and direction of itim moving forward. The initial members of the
new retail advisory committee are top industry leaders in retail, including
the Company's directors Justin King and Lee Williams, as well as a number of
other high-profile advisors including Beth Butterwick, CEO of Jigsaw, Simon
Forster, former CEO at Selfridges and Chris Brook-Carter, CEO at the Retain
Trust. The quality of this advisory committee is testament to the strength of
itim's offering and its underlying strategy.

 

Ali Athar, Chief Executive Officer, commented: "I am delighted with itim's
performance throughout 2021 and the future growth opportunities we see in
front of us.  This underpins our confidence in our new customer pipeline to
enable us to deliver a near doubling of our ARR by 2024 through organic
growth. Trends in the retail market are driving more and more store based
retailers to invest in omni-channel technology, enabling them to fight back
against online only players and itim is ideally positioned to benefit from
these trends through its proprietary technology solutions."

 

Enquiries:

 

   Itim Group plc                    Ali Athar, CEO      0207 598 7700

                                     Ian Hayes CFO

   WH Ireland (NOMAD & Broker)       Katy Mitchell       0207 220 1666

                                     Harry Ansell

                                     Darshan Patel

   IFC Advisory                      Graham Herring      0207 3934 6630

                                     Florence Chandler

 

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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