TIDMIMTK
RNS Number : 0700O
Imaginatik PLC
23 June 2010
23 June 2010
Imaginatik Plc
("Imaginatik" or the "Company")
Final Results
Imaginatik plc (AIM: IMTK.L), a provider of enterprise collaboration software
and services for innovation, announces its unaudited Final Results for the year
ended 31 March 2010.
Financial Highlights
· Turnover GBP4.6m (2009: GBP4.6m)
· Increased spend on Sales and Marketing GBP2.5m (2009: GBP1.6m)
· Loss before tax GBP1.4m (2009: loss GBP0.1m)
· Cash and cash equivalents of GBP1.5m (31 March 2009: GBP1.1m)
Corporate Highlights
· Successful launch of enhanced version 10 of Idea Central in January 2010
and subsequent addition of a mobile application
· Validation of the Idea Management market from leading research houses
· Significant multi-year deals signed with clients including State Farm
Insurance, a global financial services company and a leading US hospital system
Post Year End
· In June 2010, CEO Mark Turrell left the Company by mutual consent.
Matthew Cooper was appointed Interim Executive Chairman, Shawn Taylor appointed
joint CFO and COO
· In May 2010, completion of delayed contract signing with existing
customer, Goodyear
· New annual contract secured with Irving Oil
Matthew Cooper, Executive Chairman commented: "We enjoyed a strong first half of
the year, signing several significant multi-year deals with new and existing
customers. However, trading conditions have remained challenging and the second
half did not see the increase in revenues which we had been expecting, falling
short of ours and the market's expectations.
"Whilst this is disappointing, Idea Central continues to be deployed in some of
the world's largest organisations, across multiple industries, and the
enhancements we have made to our platform in the year have ensured we remain at
the forefront of our industry. Our focus is now on the aggressive management of
costs, while building a world-class sales and management team with the
appropriate skills and expertise to grow the Company within a fast-moving
marketplace."
For further information please contact:
+-------------------------------------+--------------------+
| Imaginatik plc | Tel: 020 7917 2975 |
+-------------------------------------+--------------------+
| Matthew Cooper, Chairman / Shawn | |
| Taylor, CFO | |
+-------------------------------------+--------------------+
| | |
+-------------------------------------+--------------------+
| Arbuthnot Securities Limited | Tel: 020 7012 2000 |
+-------------------------------------+--------------------+
| Tom Griffiths | |
+-------------------------------------+--------------------+
| | |
+-------------------------------------+--------------------+
| ICIS | Tel: 020 7651 8688 |
+-------------------------------------+--------------------+
| Caroline Evans-Jones / Hilary | |
| Millar | |
+-------------------------------------+--------------------+
About Imaginatik
Imaginatik is a provider of Innovation Management and Collective Intelligence
software and services. Some of the world's leading companies use the Company's
Idea Central software platform and consulting services to identify and develop
the important ideas and strategies that will drive the future of their business.
For more than 10 years, Imaginatik has helped customers including CSC, Pfizer,
Boeing, Chubb and Cargill achieve outstanding results with the experience of its
consulting team and highly configurable web-based software.
Imaginatik is a public company whose shares are traded on the AIM market of the
London Stock Exchange [LSE:IMTK.L] and a World Economic Forum Technology Pioneer
with offices in Boston, MA, and London, UK. Imaginatik is committed to ongoing
research into the nature of human networks, innovation and collective
intelligence. The Company collaborates with several academic institutions
including the IXL Center at Hult International Business School.
For further information please visit http://www.imaginatik.com
Chairman's Statement
Whilst the past year saw the addition of some great new customers to our client
base and the launch of an exciting new version of our software, the financial
results for the year were significantly below our original expectations. The
strong increase in revenues in the first half of the financial year was not
repeated in the second half. Whilst we still enjoy a relatively high level of
recurring revenue we did not secure as many new customers as we had anticipated,
resulting in a shortfall in revenues. This drop in the level of business in the
second half came as a result of a combination of difficult trading conditions,
which we are still experiencing, and some structural issues within the sales
operations which are being addressed.
I am pleased to report that one of the contracts scheduled for closure in Q4
with an existing client, Goodyear, has subsequently been secured in Q1 of the
current year and we are in contract negotiations with a number of other
prospects.
Whilst we have seen some excellent validation of our marketplace by industry
research firms during the year, idea management and collaborative innovation are
still yet to become mainstream business processes and as such the amount of
sales and marketing effort required to convert new customers continues to be
relatively high. We have one hugely valuable asset in this respect, which is our
extremely supportive customer base, many of whom continue to be happy to publish
the excellent results they have achieved using Idea Central. However, we are
still refining our sales and marketing efforts. Our commitment to this is
demonstrated through the recent hire of an Interim Vice President of Sales,
under whose guidance we intend to build a world-class sales team.
Following the year end, CEO Mark Turrell left the Company by mutual consent and
I stepped into the role of Executive Chairman pending the appointment of a full
time Chief Executive and subsequently Shawn Taylor, CFO took on the additional
role of Chief Operating Officer. The Board is committed to bolstering the senior
management team, in order to fortify areas which require specific skills and
experience. We intend over the course of the year ahead to be able to announce
several senior hires to ensure the Company has the right composition to succeed.
The market opportunity for Imaginatik remains significant. The proliferation of
social networking sites, instant messaging platforms and the increased usage of
software delivered via the internet in the business environment are all factors
which we believe are combining to open the door for collaborative innovation in
the workplace. Businesses and their leaders continue to face many large scale
challenges, which our software and consultancy can help them overcome. Our
challenge is to ensure that we are communicating the right messages to these
business leaders in order to secure an increasing level of new business.
I would like to thank our employees, partners, customers and shareholders for
their continued support and look forward to working with them in taking
Imaginatik forward.
Matthew Cooper
Executive Chairman
23 June 2010
Operational Review
Whilst the financial results achieved this year have been disappointing, several
of our key metrics have demonstrated continued progress. The average contract
value has increased by 27% and there is clearly a growing appetite for
longer-term, multi-year contracts not seen in previous years. This gives us
confidence that the organisations purchasing our software and consultancy have a
strong understanding of the merits of idea management and collaborative
innovation and are willing to make a significant long-term commitment to it.
Imaginatik continues to hold several significant competitive advantages in the
collaborative innovation market. We have the broadest amount of practical,
multi-year deployment experience across a range of different industries. Our
software platform is very flexible and has handled a wide variety of customer
uses at scale without undue customisation or consulting work. We have over 10
years of experience and expertise gained through working with some of the
world's most demanding companies. As highlighted in the Interim Results
statement, the industry is becoming more competitive as it begins to move
towards the mainstream. To that end we have invested significantly in our
software platform over the year to ensure that we remain competitive. Our plans
are to diversify out of a single product offering, developing solutions for
specific verticals and increasing the size of our development team.
Whilst we secured some excellent new client wins during the year, within sectors
such as healthcare, insurance, financial services and technology and have
increased the size of deals to current clients, including Kelloggs and Chubb
Insurance, we did not secure as many new clients as we had anticipated,
especially in the second half of the financial year. This is in part due to the
difficult global economic circumstances but also due to structural issues within
our sales operations. These issues are being addressed; we have recently
appointed an Interim Vice President of Sales to take responsibility for the
function and one of his early goals is to seek a permanent U.S. based sales
manager. We will give further updates to shareholders on this restructuring in
due course.
In the face of ongoing economic pressures we are aggressively managing costs,
aligning the Company in terms of size, operations and structure to the current
market opportunity.
Financial Review
Turnover for the year ended 31 March 2010 was broadly the same, year on year at
GBP4.6m (2009: GBP4.6m). 20% of this revenue was derived from up-selling our
software and services into existing customers, 29% from selling into new
clients, and 51% from recurring business (2009: 18:33:49%). We added an
additional 6 new customers on annual contracts during the course of the year
(2009: 11). The US continues to be our core market and the percentage of
revenues received from the region grew this year to 90% (2009: 81%) with the
remaining 10% made up from the Rest of the World (2009: 19%).
Due to a number of contract cancellations, largely driven by the deteriorating
economic climate, annual recurring revenues have decreased by 32% to GBP2.2m
(2009: GBP3.3m).
Total operational costs increased 30% in the year to GBP5.7m (2009: GBP4.4m).
This rise in cost base is a consequence of the significant investment we have
made in strengthening our sales and marketing capabilities in the expectation of
driving future revenues. As a result of this substantial rise in the cost base
and lower than anticipated revenues, our operating loss before tax has increased
to GBP1.4m (2009: loss of GBP0.1m).
In August 2009 we raised GBP1.49 million net of expenses through a placing of
26,266,666 new ordinary shares of 0.0625 pence each at a price of 6 pence per
share. The net proceeds of the Placing are being used to provide the Company
with the resources to pursue its growth plans and for general working capital
purposes.
Our cash position has strengthened over the year with cash and cash equivalents
at the year end standing at GBP1.51m (2009: GBP1.14m) and net total equity
attributable to shareholders has risen to GBP1.70m (2009: GBP1.45m).
Sales and Marketing
During the first half of the year we grew our sales team from seven to 10
people. However, the deterioration in new business wins in the second half of
the year caused us to carry out some restructuring to the team. We are now
putting in place new management and reporting systems and we are pleased to
welcome, after the year end, Giles Howard as Interim Vice President of Sales.
Giles is working alongside the existing management team with specific
responsibility for building Imaginatik's sales team and helping to identify a
permanent candidate for the position. Giles has extensive commercial and
sales-based experience with a career spanning over 20 years in various aspects
of the sales industry.
In the year, we signed six new customers onto annual licenses and a number of
pilot projects, which are all delivered via the Software as a Service (SaaS)
model. We continue to sell across a range of verticals adding new clients from
the telecommunications, public and manufacturing sectors.
Post the year end we closed two important contracts; the first a two year deal
delayed from Q4 with Goodyear, a long-standing customer which has increased its
use of Idea Central; the second a new customer win with Irving Oil in North
America. We continue to be in contract discussions with several other existing
and new customers, one of which remains delayed from Q4.
We increased our marketing budget during the year to support our sales efforts.
This includes the launch of an enhanced new website in the second half of the
year and an increased web presence. We have engaged with a U.S. PR agency and
continue to have ongoing dialogue with industry analysts, aiming to capitalise
on the growing awareness of our industry. We continue to build our sales
pipeline through attendance at key industry events, including most recently the
Front End of Innovation in Boston, the CFO summit in Florida and World
Innovation Forum in New York.
Customer Case Studies
Idea Central continues to deliver significant results for some of the world's
leading organisations. Some examples of projects implemented over the year
through the use of our software are as follows;
- Fireman's Fund insurance company tap into deeply rooted culture of
innovation: The premier property and casualty insurer wished to identify the
best ideas implemented and share them across the company, and also to embed
innovation into its culture and practices. In the first year, Fireman's Fund
achieved a 58% participation rate among all employees, collecting nearly 2,200
implemented ideas with an estimated business value in the millions of dollars.
Jan Schultz, Senior Director of Innovation at Fireman's Fund Insurance Company,
stated, "Fireman's Fund's goal is to make innovation a part of our culture - our
everyday way of doing things. It can't be just the flavour of the day. We're on
the path to achieving that now and Imaginatik has been an important partner on
that journey."
- Xerox generates high quality ideas through Idea Central event: One of the
world's leaders in technology sought to increase the number of top quality
research ideas, provide measurable results, and fit well within the corporate
culture. An Idea Central event by Imaginatik generated 10 times the amount of
high quality ideas compared to the face-to-face approach, many of which were
integrated into the company's research portfolio almost immediately. George
Gibson, a leader within the Xerox Innovation Group, stated, "For our
application, we found Idea Central to be the best, most integrated, and most
comprehensive idea management software available on the market. We were really
impressed with the energy of the people at Imaginatik, and the openness of the
community. We felt they were committed to making us successful."
Product Development
During the year under report we have made significant investment in increasing
the size of our product development team in order to enhance our software and
solutions platform. Highlights of the period include the release in January 2010
of Idea Central 10, providing a major update to our award-winning collective
intelligence software solution. We have also introduced Idea Central Mobile,
which has been developed in collaboration with one of our clients, Chubb
Insurance. The product was demonstrated recently at a Chubb conference in Boston
allowing all conference attendees to participate in an Idea Central event from
their mobile device.
Other product developments include a new solution that integrates Idea Central
with Microsoft SharePoint. This module will enable clients to integrate Idea
Central with other software products.
We shall seek to further strengthen our product range over the next year by
introducing new offerings that complement the core Idea Central platform. These
will include a portfolio tracking solution, advanced review and assessment
tools, further focus on integration with enterprise systems and expanding access
via mobile devices.
Board Changes
As previously announced, Matthew Cooper joined the Board of Imaginatik as
non-executive Chairman on 9 October 2009 replacing Howard Marshall who retired
from the Board following three years with the Company. The Board is grateful to
Mr. Marshall for his contribution to the growth of the Company during his time
with Imaginatik. His assistance throughout the IPO and the Company's first years
as a public company was invaluable.
On the 22 December 2009, Geoffrey Carss, Executive Director responsible for
Sales and Professional Services, resigned from the Board. The Board would like
to thank Mr. Carss for his contribution to the development of Imaginatik over
the past three years and wish him well in his future endeavours.
On the 7 June 2010, following the year end, the Company announced that Mark
Turrell, CEO, left the Company by mutual consent. Matthew Cooper was appointed
as interim Executive Chairman pending the appointment of a full time Chief
Executive. Subsequently, on the 15 June 2010, Shawn Taylor, CFO, was appointed
Chief Operational Officer and CFO, assuming responsibility for the operational
management of the Company alongside his current financial responsibilities as
CFO.
Outlook
The first quarter of the financial year is a traditionally slow one and that
trend has continued this year although we have seen some improvement over the
first quarter of 2009. We continue to sign new business and are particularly
pleased to have entered the resource sector, one in which we have not previously
had a presence.
Idea Central continues to be deployed in some of the world's largest
organisations, across multiple industries, and the enhancements we have made to
our platform in the year have ensured we remain at the forefront of our
industry. Our focus is now on the aggressive management of costs, while building
a world-class sales and management team with the appropriate skills and
expertise to grow the Company within a fast-moving marketplace.
Shawn Taylor
COO & CFO
23 June 2010
Consolidated Statement of Comprehensive Income for the Year Ended 31 March 2010
+-------------------------------------+------+-------------+-------------+
| | | | |
+-------------------------------------+------+-------------+-------------+
| | | | |
+-------------------------------------+------+-------------+-------------+
| | Note | 2010 | 2009 |
+-------------------------------------+------+-------------+-------------+
| | | GBP | GBP |
+-------------------------------------+------+-------------+-------------+
| | | | |
+-------------------------------------+------+-------------+-------------+
| Revenue | 2 | 4,550,646 | 4,580,809 |
+-------------------------------------+------+-------------+-------------+
| | | | |
+-------------------------------------+------+-------------+-------------+
| Cost of sales | | (326,267) | (302,386) |
+-------------------------------------+------+-------------+-------------+
| Gross profit | | 4,224,379 | 4,278,423 |
+-------------------------------------+------+-------------+-------------+
| | | | |
+-------------------------------------+------+-------------+-------------+
| Administrative expenses | | (5,653,189) | (4,382,790) |
+-------------------------------------+------+-------------+-------------+
| | | | |
+-------------------------------------+------+-------------+-------------+
| Operating loss before financing and | | (1,428,810) | (104,367) |
| taxation | | | |
+-------------------------------------+------+-------------+-------------+
| | | | |
+-------------------------------------+------+-------------+-------------+
| Operating (loss)/profit before | | (1,244,933) | 128,893 |
| share option costs | | | |
+-------------------------------------+------+-------------+-------------+
| Share option costs | | (183,877) | (233,260) |
+-------------------------------------+------+-------------+-------------+
| | | | |
+-------------------------------------+------+-------------+-------------+
| Finance (costs)/income | | (2,870) | 1,939 |
+-------------------------------------+------+-------------+-------------+
| Loss on ordinary activities before | | (1,431,680) | (102,428) |
| taxation | | | |
+-------------------------------------+------+-------------+-------------+
| | | | |
+-------------------------------------+------+-------------+-------------+
| Taxation expense | | (7,215) | - |
+-------------------------------------+------+-------------+-------------+
| Loss on ordinary activities for the | | | |
| year | | (1,438,895) | (102,428) |
+-------------------------------------+------+-------------+-------------+
+-----------------------------+----------+-----+----+---------+---------+
| Loss per share: Basic and | | | 3 | (0.96p) | (0.08p) |
| diluted | | | | | |
+-----------------------------+----------+-----+----+---------+---------+
Consolidated Statement of Changes in Equity for the Year Ended 31 March 2010
+------------------------+---------+-----------+---------+-------------+-------------+
| | Share | Share | Share | Retained | Total |
| | capital | premium | option | earnings | |
| | | | reserve | | |
+------------------------+---------+-----------+---------+-------------+-------------+
| | GBP | GBP | GBP | GBP | GBP |
+------------------------+---------+-----------+---------+-------------+-------------+
| Balance at 1 April | 78,182 | 2,170,258 | 103,515 | (1,295,934) | 1,056,021 |
| 2008 | | | | | |
+------------------------+---------+-----------+---------+-------------+-------------+
| | | | | | |
+------------------------+---------+-----------+---------+-------------+-------------+
| Loss for the year | | - | - | (102,428) | (102,428) |
+------------------------+---------+-----------+---------+-------------+-------------+
| Share option costs | - | - | 233,260 | - | 233,260 |
+------------------------+---------+-----------+---------+-------------+-------------+
| | | | | | |
+------------------------+---------+-----------+---------+-------------+-------------+
| Shares issued | 4,738 | 259,678 | - | - | 264,416 |
+------------------------+---------+-----------+---------+-------------+-------------+
| | 4,738 | 259,678 | 233,260 | (102,428) | 395,428 |
+------------------------+---------+-----------+---------+-------------+-------------+
| | | | | | |
+------------------------+---------+-----------+---------+-------------+-------------+
| Balance at 31 March | 82,920 | 2,429,936 | 336,775 | (1,398,362) | 1,451,269 |
| 2009 | | | | | |
+------------------------+---------+-----------+---------+-------------+-------------+
| | | | | | |
+------------------------+---------+-----------+---------+-------------+-------------+
| Loss for the year | | - | - | (1,438,895) | (1,438,895) |
+------------------------+---------+-----------+---------+-------------+-------------+
| Share option costs | - | - | 183,877 | - | 183,877 |
+------------------------+---------+-----------+---------+-------------+-------------+
| | | | | | |
+------------------------+---------+-----------+---------+-------------+-------------+
| Shares issued | 16,595 | 1,488,945 | - | - | 1,505,540 |
+------------------------+---------+-----------+---------+-------------+-------------+
| | 16,595 | 1,488,945 | 183,877 | (1,438,895) | 250,522 |
+------------------------+---------+-----------+---------+-------------+-------------+
| | | | | | |
+------------------------+---------+-----------+---------+-------------+-------------+
| Balance at 31 March | 99,515 | 3,918,881 | 520,652 | (2,837,257) | 1,701,791 |
| 2010 | | | | | |
+------------------------+---------+-----------+---------+-------------+-------------+
Consolidated Balance Sheet as at 31 March 2010
+---------------------------+-------------+-----------+-------------+-----------+
| | 2010 | 2009 |
+---------------------------+-------------------------+-------------------------+
| | GBP | GBP | GBP | GBP |
+---------------------------+-------------+-----------+-------------+-----------+
| ASSETS | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| Non-current assets | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| Property, plant and | 151,802 | | 91,311 | |
| equipment | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| Intangible assets | 161,359 | | 154,239 | |
+---------------------------+-------------+-----------+-------------+-----------+
| | | 313,161 | | 245,550 |
+---------------------------+-------------+-----------+-------------+-----------+
| | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| Current assets | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| Trade and other | 1,596,020 | | 1,551,522 | |
| receivables | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| Cash and cash equivalents | 1,506,148 | | 1,136,231 | |
+---------------------------+-------------+-----------+-------------+-----------+
| | | 3,102,168 | | 2,687,753 |
+---------------------------+-------------+-----------+-------------+-----------+
| | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| Total assets | | 3,415,329 | | 2,933,303 |
+---------------------------+-------------+-----------+-------------+-----------+
| | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| EQUITY AND LIABILITIES | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| Equity | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| Issued capital | 99,515 | | 82,920 | |
+---------------------------+-------------+-----------+-------------+-----------+
| Share premium | 3,918,881 | | 2,429,936 | |
+---------------------------+-------------+-----------+-------------+-----------+
| Share option reserve | 520,652 | | 336,775 | |
+---------------------------+-------------+-----------+-------------+-----------+
| Retained earnings | (2,837,257) | | (1,398,362) | |
+---------------------------+-------------+-----------+-------------+-----------+
| | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| Total equity attributable | | 1,701,791 | | 1,451,269 |
| to equity holders of the | | | | |
| parent | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| Liabilities | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| Non-current liabilities | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| Other payables | 230,307 | | - | |
+---------------------------+-------------+-----------+-------------+-----------+
| | | 230,307 | | - |
+---------------------------+-------------+-----------+-------------+-----------+
| | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| Current liabilities | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| Interest-bearing loans | - | | 19,713 | |
| and borrowings | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| Trade and other payables | 1,483,231 | | 1,462,321 | |
+---------------------------+-------------+-----------+-------------+-----------+
| | | 1,483,231 | | 1,482,034 |
+---------------------------+-------------+-----------+-------------+-----------+
| | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| Total liabilities | | 1,713,538 | | 1,482,034 |
+---------------------------+-------------+-----------+-------------+-----------+
| | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
| Total equity and | | 3,415,329 | | 2,933,303 |
| liabilities | | | | |
+---------------------------+-------------+-----------+-------------+-----------+
Consolidated Cash Flow Statement for the Year Ended 31 March 2010
+----------------------------+------+-----------+-------------+----------+-----------+
| | | 2010 | 2009 |
+----------------------------+------+-------------------------+----------------------+
| | Note | GBP | GBP | GBP | GBP |
| | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
| Cash (outflows)/inflows | 6 | | (866,463) | | 781 |
| from operating activities | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
| | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
| Investing activities | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
| Acquisition of property, | | (172,048) | | (97,456) | |
| plant and equipment | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
| Acquisition of intangible | | (77,399) | | (97,478) | |
| assets | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
| Net cash used in investing | | | (249,447) | | (194,934) |
| activities | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
| | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
| Net cash flow before | | | (1,115,910) | | (194,153) |
| financing activities | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
| | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
| Financing activities | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
| | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
| Net proceeds from the | | 1,505,540 | | 264,416 | |
| issue of share capital | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
| Repayment of borrowings | | (19,713) | | (24,522) | |
+----------------------------+------+-----------+-------------+----------+-----------+
| Net cash generated from | | | 1,485,827 | | 239,894 |
| financing activities | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
| | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
| Net increase in cash and | | | 369,917 | | 45,741 |
| cash equivalents | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
| | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
| Opening net cash and cash | | | 1,136,231 | | 1,090,490 |
| equivalents | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
| Closing net cash and cash | | | 1,506,148 | | 1,136,231 |
| equivalents | | | | | |
+----------------------------+------+-----------+-------------+----------+-----------+
Notes to the consolidated financial statements
1. Basis of preparation
The preliminary financial information has been prepared in accordance with IRFS
(as adopted by the European Union), in accordance with the accounting policies
as set out in the financial statements for the year ended 31 March 2009 and the
AIM Rules for Companies. These preliminary results for the year ended 31 March
2010, which are not audited, do not comprise statutory accounts within the
meaning of section 434 of the Companies Act 2006. The comparative financial
information for the year ended 31 March 2009 has been extracted from the full
audited accounts of the group in respect of that financial period. These
accounts received an unqualified audit opinion and did not contain a statement
under either section 237(2) or (3) of the Companies Act 1985 and have been
delivered to the Registrar of Companies. The statutory accounts for the 12
months ended 31 March 2010 will be finalised based on the announcement and will
be delivered to the Registrar of Companies following the Company's annual
general meeting.
2. Segmental reporting
The directors consider that the group has one class of business, being the
provision of innovation software and related professional services. These
services are provided to clients in different geographical areas using resources
shared between those markets. Therefore segmental information is presented in
respect of the group's geographical segments relating to where customers are
based. This is the primary basis of segmental reporting. The geographical
segmental reporting reflects the group's management and internal reporting
structure.
Segmental results include items directly attributable to a segment as well as
those that can be allocated on a reasonable basis. The location of customers is
not significantly different to the location of assets.
+------------------------------------+--------------+-----------+
| | 2010 | 2009 |
+------------------------------------+--------------+-----------+
| | GBP | GBP |
+------------------------------------+--------------+-----------+
| Segmental revenue: | | |
+------------------------------------+--------------+-----------+
| United States of America | 4,073,195 | 3,698,510 |
+------------------------------------+--------------+-----------+
| Rest of the World | 477,451 | 882,299 |
+------------------------------------+--------------+-----------+
| | 4,550,646 | 4,580,809 |
+------------------------------------+--------------+-----------+
| | | |
+------------------------------------+--------------+-----------+
| Segmental result: | | |
+------------------------------------+--------------+-----------+
| United States of America | (1,275,536) | (67,984) |
+------------------------------------+--------------+-----------+
| Rest of the World | (163,359) | (34,444) |
+------------------------------------+--------------+-----------+
| | (1,438,895) | (102,428) |
+------------------------------------+--------------+-----------+
| | | |
+------------------------------------+--------------+-----------+
| Carrying amount: | | |
+------------------------------------+--------------+-----------+
| United States of America | | |
+------------------------------------+--------------+-----------+
| Assets | 2,666,212 | 2,380,269 |
+------------------------------------+--------------+-----------+
| Liabilities | (1,336,531) | (919,413) |
+------------------------------------+--------------+-----------+
| Rest of the World | | |
+------------------------------------+--------------+-----------+
| Assets | 749,117 | 553,034 |
+------------------------------------+--------------+-----------+
| Liabilities | (377,007) | (562,621) |
+------------------------------------+--------------+-----------+
| | | |
| | 1,701,791 | 1,451,269 |
+------------------------------------+--------------+-----------+
| | | |
| | | |
| | | |
+------------------------------------+--------------+-----------+
| Additions to property, plant and | | |
| equipment, and | | |
| intangible assets: | | |
+------------------------------------+--------------+-----------+
| United State of America | 172,321 | 58,774 |
+------------------------------------+--------------+-----------+
| Rest of the World | 77,126 | 136,160 |
+------------------------------------+--------------+-----------+
| | | |
| | 249,447 | 194,934 |
+------------------------------------+--------------+-----------+
| Other: | | |
+------------------------------------+--------------+-----------+
| Depreciation | | |
+------------------------------------+--------------+-----------+
| United States of America | 79,811 | 49,422 |
+------------------------------------+--------------+-----------+
| Rest of the World | 31,746 | 16,658 |
+------------------------------------+--------------+-----------+
| Amortisation | | |
+------------------------------------+--------------+-----------+
| United States of America | 12,378 | - |
+------------------------------------+--------------+-----------+
| Rest of the World | 57,901 | 42,865 |
+------------------------------------+--------------+-----------+
| Share option costs | | |
+------------------------------------+--------------+-----------+
| United States of America | 34,937 | 53,650 |
+------------------------------------+--------------+-----------+
| Rest of the World | 148,940 | 179,610 |
+------------------------------------+--------------+-----------+
| Other share-based payments | | |
+------------------------------------+--------------+-----------+
| Rest of the World | - | 68,490 |
+------------------------------------+--------------+-----------+
3. Earnings per share
Basic loss per share (EPS) has been calculated in accordance with IAS 33
'Earnings per share'. The calculation of EPS is based on losses of GBP1,438,895
(2009: GBP102,428) and on a weighted average number of ordinary shares in
existence during the year of 149,297,866 (2009: 129,258,575).
The share options issued during the current and prior year are considered to be
anti-dilutive, and therefore diluted EPS equals basic EPS.
4. Barter transactions
During the year barter transactions totalling GBP229,392 (2009: GBP246,000) were
entered into by the Group. There was no profit or loss recorded on these
transactions. At the year end there was deferred income balance of GBP5,900
(2009: GBP13,000) and deferred costs of GBP5,900 (2009: GBP13,000) in respect of
barter transactions.
5. Share capital
+--------------------------------+----+----------+---------+
| | | 2010 | 2009 |
| | | GBP | GBP |
+--------------------------------+----+----------+---------+
| Allotted, called up and fully | | | |
| paid | | | |
+--------------------------------+----+----------+---------+
| 132,671,917 ordinary shares of | | - | 82,920 |
| 0.0625p each | | | |
+--------------------------------+----+----------+---------+
| 159,223,876 ordinary shares of | | 99,515 | - |
| 0.0625p each | | | |
+--------------------------------+----+----------+---------+
| | | | |
+--------------------------------+----+----------+---------+
| | | 99,515 | 82,920 |
+--------------------------------+----+----------+---------+
On 3 July 2009:
- 247,793 new ordinary shares of 0.0625p each with a fair value of
GBP15,693 were issued to directors and other staff in lieu of accrued salary.
On 13 August 2009:
- 26,266,666 new ordinary shares of 0.0625p each were placed with
investors for a net cash consideration of GBP1,487,597. Issue costs relating to
the above placing were GBP88,402, and have been deducted from the share premium
account.
On 20 August 2009:
- 37,500 new ordinary shares of 0.0625p each were issued for a net cash
consideration of GBP2,250. This was in relation to the exercise of share
options.
6. Reconciliation of operating loss to net cash (outflow)/ inflow from operating
activities
+---------------------------------+-----------------------+-------------------+
| | Group | Group |
+---------------------------------+-----------------------+-------------------+
| | 2010 | 2009 |
+---------------------------------+-----------------------+-------------------+
| | GBP | GBP |
+---------------------------------+-----------------------+-------------------+
| Operating loss | (1,428,810) | (104,367) |
+---------------------------------+-----------------------+-------------------+
| Depreciation of tangible fixed | 111,557 | 66,080 |
| assets | | |
+---------------------------------+-----------------------+-------------------+
| Amortisation of intangible | 70,279 | 42,865 |
| fixed assets | | |
+---------------------------------+-----------------------+-------------------+
| Share option charge | 183,877 | 233,260 |
+---------------------------------+-----------------------+-------------------+
| Corporation tax paid | (7,215) | - |
+---------------------------------+-----------------------+-------------------+
| Net interest (paid)/ received | (2,870) | 1,939 |
+---------------------------------+-----------------------+-------------------+
| | | |
+---------------------------------+-----------------------+-------------------+
| Operating cash flows before | (1,073,182) | 239,777 |
| movements in working capital | | |
+---------------------------------+-----------------------+-------------------+
| | | |
+---------------------------------+-----------------------+-------------------+
| Increase in trade and other | (44,498) | (666,036) |
| receivables | | |
+---------------------------------+-----------------------+-------------------+
| Increase in payables | 251,217 | 427,040 |
+---------------------------------+-----------------------+-------------------+
| Net movement in working capital | 206,719 | (238,996) |
+---------------------------------+-----------------------+-------------------+
| | | |
+---------------------------------+-----------------------+-------------------+
| Net cash from operating | (866,463) | 781 |
| activities | | |
+---------------------------------+-----------------------+-------------------+
7. Report and Accounts
Copies of the Company's unaudited preliminary results announcement are available
from its offices at 6 Wessex Way, Colden Common, Winchester SO21 1WP and on its
website, www.imaginatik.com. A copy of the Report and Accounts will be sent to
all shareholders with notice of the AGM and will also be available on the
Company's website.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR ZMGZVVZMGGZM
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