itim Group plc (LON:ITIM), a SaaS based technology company that enables store-based retailers to optimise their businesses to improve financial performance, has announced its audited results for the year ended 31 December 2023.
Financial Highlights
| · | Group revenues increased by 15 % to £16.1 million (2022: £14.0 million) |
| · | Annual recurring revenue (“ARR”) is £13.2 million (2022: £13.2 million) |
| · | Group Adjusted EBITDA* £0.7 million (2022: £0.2 million) |
| · | Adjusted EBITDA* margin increased by 2 percentage points (“PPT”) to 4% (2022: 2%) |
| · | Adjusted Earnings per share** -2.86 pence (2022: -2.01 pence) |
| · | Closing cash balances were £1.9 million at 31 December 2023, down from £3.9 million at 31 December 2022 |
* EBITDA has been adjusted to exclude share-based payment charges, exceptional items, along with depreciation, amortisation, interest and tax from the measure of profit.
** The profit measure has been adjusted to exclude exceptional items and share option charge
Ali Athar, itim Group Chief Executive, commented: “I am pleased to report itim’s full year results which saw a strong increase in revenue fuelled by a 54% rise in services revenues and an 8% uptick in booked subscriptions. Our strategic investments have fortified our position and enhanced our products, paving the way for sustained success in the dynamic retail landscape.
“Our commitment to excellence is evident in significant product improvements and the creation of ‘UNIFY,’ our unified retailing platform. As we navigate the evolving business environment, we are strategically realigning our focus to enhance financial performance and deliver tangible retail value. Looking ahead to 2024, itim’s strategic focus on margin enhancement and operational efficiency provides the Board with cautious optimism and positions us well for continued success. I look forward to updating the market in due course.”
Copies of the Annual Report and Accounts for FY2023 with the notice of annual general meeting have been posted to shareholders today and are available on the Company’s website www.itim.com. The Company intends to hold its annual general meeting at the offices of the Company, 2nd Floor, Atlas House, 173 Victoria Street, London SW1E 5NA on 14th June 2024 at 10.30 a.m.
CHAIRMAN’S STATEMENT
In this year’s annual report, I am pleased to reflect on our journey, achievements, and the path forward for the Company.
I am proud to report that our financial performance has remained robust, showcasing the strength of our business model and team dedication. The past year has been a testament to our resilience and adaptability in the face of unprecedented challenges. Despite the persistent global uncertainties, the business has performed well and we have sustained growth, a testament to our prudent management and strategic foresight. We have remained steadfast in our commitment to delivering value to our shareholders, customers, employees, and communities. Our focus on innovation, operational excellence, and customer-centricity has driven us forward even in these turbulent times. We have continued to invest in research and development, to enhance our products, which we believe has kept us ahead of evolving market trends.
The strength of our existing client base is testament to the quality of our product offering and business as a whole. Our products demonstrate considerable worth and value to well renowned companies within the retail industry who continue to show trust and belief in the itim product suite. Demand for our offering remains high as we continue our long standing relationships and sign new business.
Furthermore, our commitment to sustainability and corporate responsibility remains strong. We prioritise
the importance of environmental stewardship, social impact, and ethical governance in today’s interconnected world. We continue to promote diversity and inclusion, and foster a culture of integrity and transparency across our operations.
Looking ahead, we remain cautiously optimistic about the future. While uncertainties persist, we are confident in our ability to navigate challenges and seize opportunities. Innovation, agility, and resilience remain priorities to ensure we remain at the forefront of our industry and create sustainable value for all stakeholders.
I would like to express my sincere gratitude to our shareholders for their continued trust and support, to our customers for their loyalty and partnership, to our employees for their dedication and passion, and to our communities for their resilience and collaboration. Together, we will continue to build a brighter future for the Company.
Michael Jackson
Chairman
10th May 2024
CHIEF EXECUTIVE’S REVIEW
I am pleased to present our Annual Report for 2023.
Our total revenue for the year reached £16.1 million in 2023, marking a 15% increase from the previous year’s £14 million. This growth was driven by a robust 54% increase in services revenues and an 8% increase in booked subscription revenues, resulting in an uplift in EBITDA of over 200%.
As we approach the culmination of our two-year investment programme, the funds raised at IPO have not only fortified our financial position but have also played a pivotal role in enhancing our products and positioning us for sustained success in the dynamic retail landscape.
Our commitment to excellence is evident in the significant improvements across our product offerings. The inclusion of fashion into our core Retail Suite, catalysed by the Quiz Clothing contract win, marks a strategic milestone. Furthermore, investments in our Profimetrics platform, Chameleon store systems, Tradeledger for supplier collaboration, and e-commerce have collectively elevated the capabilities of our offerings.
This transformative journey has led to the creation of a unified platform, named ‘UNIFY.’ The rebranding not only consolidates our products, but also better communicates the essence of our Unified Retailing platform. The positive feedback from our customers underscores the tangible impact these improvements have made, reinforcing our confidence in our ‘go-to-market’ strategy.
As we confront the challenges of an ever-changing business environment, our commitment to sustaining and elevating our financial performance remains steadfast, underpinned by a solid recurring revenue base. Mindful of the current economic climate, we are currently in the process of “right sizing” our business, alongside a strategic pivot away from ‘free’ implementation services towards a continual focus on increasing services revenues and EBITDA.
Additionally, our consulting division continues to demonstrate the real ‘benefits’ of our solutions, underscoring our commitment to delivering tangible retail value to the retail community.
Looking ahead to 2024, itim’s strategic focus centres on further enhancing margins and profitability, emphasising fine-tuning operational efficiency and ensuring sustainable returns on investments. Notably, the Company is now reallocating resources by reducing development spending and increasing efforts in sales and marketing.
The decision to pare back development spending is a strategic move, aimed at consolidating the gains made in product innovation, while actively shifting the spotlight to revenue generation. I believe this balanced approach positions itim for continued success and growth in the competitive business landscape.
As we navigate the challenges and opportunities of 2024, itim remains vigilant in monitoring market trends and consumer preferences. The Company’s commitment to customer acquisition and retention, coupled with a strategic blend of innovation and revenue-focused initiatives, underpins our vision for sustained growth and prosperity in the years ahead.
In conclusion, I want to express my gratitude for your continued trust and support. As we stand at the threshold of a new chapter, poised for sustained growth.
Ali Athar
Chief Executive officer
10th May 2024
