IMImobile PLC (AIM:IMO), a cloud communications software and solutions provider, today announces its Unaudited Preliminary Results for the year ended 31 March 2019.
Key financial highlights of the Group
- Revenue increased 28% to £142.7m (2018: £111.4m) of which 17% is organic1
- Gross profit increased 23% to £62.6m (2018: £50.7m) of which 7% is organic1
– Organic growth 14% on a constant currency basis2 excluding MTN in Middle
ast and Africa (MEA) region
– Strong gross profit growth in Europe and Americas of 43% (16% organic1) with the region contributing over 70% of Group gross profit
– Both the Asia-Pacific (APAC) region and enterprise business in South Africa delivered strong organic1 gross profit growth of 14% and 20% respectively on a constant currency basis2 - Adjusted EBITDA3 increased 35% to £18.0m (2018: £13.4m)
- Adjusted profit after tax3 increased 39% to £10.8m (2018: £7.8m)
- Adjusted cash generated3 from operations increased 47% to £16.9m (2018: £11.5m) with strong cash conversion4 of 94% (2018: 86%)
- Operating profit on a statutory basis of £1.0m (2018: £2.7m) and loss after tax on a statutory basis of £1.3m (2018: profit after tax of £0.8m) after charging contingent consideration related expenses, acquisition costs and amortisation of acquired intangibles of £13.0m before tax (2018: £7.4m) and £12.1m after tax (2018: £7.0m)
- Net debt of £7.5m at 31 March 2019 (2018: net cash of £4.3m). This is after completion of the Impact Mobile acquisition during the year, acquired for net cash of £16.1m
- Established track record of performance since IPO with 5-year revenue CAGR5 of 27% and 5-year gross profit CAGR5 of 18%
Operational highlights of the Group
- Strong organic1 growth from Europe & Americas, APAC and enterprise business in South Africa
- Number of clients that provide more than £500k p.a. revenue increased to 40 (33 in FY18) and clients with revenues between £100k p.a. and £500k p.a. increased to 83 (43 in FY18)
- Enhanced operating leverage benefitting from past investment in partnerships and R&D, with EBITDA margin6 up to 28.8% (2018: 26.4%)
- Enhanced Enterprise communications platform as a service (“CPaaS”) offering with the recent launch of new communications channels such as WhatsApp Business and Apple Business Chat
- Considerable commercial and technical progress made with partners including BT, Telia, Salesforce and NICE inContact
- Increasing focus on North American market, with good progress made through acquisition of Impact Mobile, which is performing as expected, and additional senior management hires and investment
[1] Excluding acquired business of Sumotext, Healthcare Communications, Impact Mobile and ExpressPigeon
2 Constant currency is calculated by comparing the FY18 results with FY19 results retranslated at the rates of exchange prevailing during FY19
3 See note 6 for details of adjusted performance measures, adjusting items and a reconciliation of statutory results to adjusted results
4 Cash conversion is defined as adjusted cash generated from operations (see note 6) as a percentage of adjusted EBITDA
5 Compound annual growth rate calculated against revenue of £43.4m and gross profit of £27.9m in the year ended 31 March 2014
6 Adjusted EBITDA / gross profit
Outlook
The Group is at a very exciting stage of development with technology developments creating momentum in the customer communications sector for more automation and use of digital channels. We are ideally placed to capitalise on this momentum and we believe there is no clear category leader in this market and that, due to our leading position in the advanced UK market, we have an opportunity to play a leading role globally.
The financial year has started well with trading in line with expectations. We continue to have good earnings visibility due to our established client relationships and healthy pipeline of new deployments and high proportion of recurring customer revenues. We are confident in delivering continued organic growth across all parts of the business.
Jay Patel, Chief Executive Officer of IMImobile PLC, commented:
“We are pleased with the strong results and momentum we have in the business. This reflects the market dynamics shifting towards more automation and the use of digital channels for delivering better customer experiences. We have a great modular set of consumer engagement products and have invested significantly in IMIconnect, our Enterprise CPaaS offering, that we believe, in its category, is one of the most advanced platforms globally. We enter the new trading year with strong momentum and are confident in delivering continued organic growth across all parts of the business.”
imimobile