IMImobile posts solid revenue growth

Cloud communications software and solutions provider IMImobile announced its preliminary results for the year to 31 March on Wednesday, reporting revenue as growing 24% to £76.1m, of which 15% was marked as organic growth by the board.

The AIM-traded firm said gross profit was up 19% to £43.4m, of which 14% was organic growth, while operating profit rose 19% to £4.9m.

Adjusted EBITDA increased 7% to £11.5m, adjusted profit after tax was up 10% to £7.5m, and profit after tax on a statutory basis totalled £4.1m, rising from £2.2m year-on-year.

The board said the company had “maintained momentum” since its IPO, with a three-year revenue CAGR of 21%, three-year gross profit CAGR of 16% and three-year adjusted EBITDA CAGR of 17%.

It reported “good contribution” from both the ‘Europe and Americas’ and the ‘India and South East Asia’ regions, with gross profit growth of 15% and 31% respectively.

Cash generated from operations was £11.9m, up from £10.6m, with “strong” cash conversion of 104%, improving from 99%.

IMImobile had cash and cash equivalents at 31 March of £14.7m, compared to £15.0m, after completion of the Infracast acquisition which utilised net cash of £5.5m.

“There continues to be an overwhelming need for companies such as banks, mobile operators, retailers, utilities and major brands to invest in improving customer experience, predominantly through digital channels,” said chief executive Jay Patel.

“Our strategy is to be at the heart of these digital interactions for our clients, and we believe that the agile and evolving nature of our product portfolio aligns well with the market's needs.”

Patel said that demand for IMImobile’s services had allowed the company to “significantly increase” its recurring revenue base, and continue to both invest in product development and deliver profitable, cash generative growth.

“We will continue to invest further in marketing and product development to establish a leading position in this growth market.”