Imaginatik's shares plummet after losses deepen and revenues fall

Management software provider Imaginatik saw its shares dip on Tuesday after reporting steeper annual losses as revenues fell and the company failed to complete its objectives for the year.

For the year ended 31 March, the company’s loss before tax increased by 29% to £1.4m, driven by a 6% decrease in revenues to £3.7m, a 9% rise in administrative costs to £5m and a 4% increase in cost of sales to £0.2m.

Imaginatik admitted that it "did not achieve all the objectives set out in the 2017 report and accounts" but did manage to reduce its break-even point by £1m per year and has introduced new marketing methods to encourage revenue generation.

At 31 March, the company had cash and cash equivalents of £61,000, down 48% from the same point the year before.

Angus Forrest, chief executive of Imaginatik, said: "Imaginatik has a market leading product with many satisfied customers and employs great people who have a passion for the business. The challenge for the year ahead is to build on the strong base in the existing markets and then build out globally."

For the coming year the AIM traded company intends to focus on cost reduction, which has the objective of reducing the annualised cost base by at least £0.75m, and a revenue improvement programme.

"Whilst we have made considerable progress, there is much to do for the company to begin to achieve its undoubted potential and we will work to exploit the opportunity profitably," said Forrest.

Imaginatik’s shares were down 8.82% at 7.75p at 0819 BST.