TIDMIMTK
RNS Number : 6311R
Imaginatik PLC
21 November 2012
21 November 2012
Imaginatik Plc
("Imaginatik" or the "Company")
Interim Results
Imaginatik plc (AIM: IMTK.L), a leading provider of enterprise
innovation services including a range of technology products and
consultancy, announces its unaudited interim results for the half
year ended 30 September 2012.
Key points
-- Revenue increased by 8% to GBP1.75 million (H1 2011: GBP1.62 million)
-- Operating losses before share option costs reduced to GBP0.36
million (H1 2011: GBP0.43 million)
-- Substantial number of new customer wins: 17 new customers on
either annual or pilot contracts (H1 2011: 6)
-- Increasing proportion of customers taking consultancy
services alongside software offering including Mead Johnson,
Proctor & Gamble and The Society of Petroleum Engineers
-- Successful conclusion of litigation
-- Placing in June 2012 raising GBP1.0 million before expenses
Matt Cooper, Executive Chairman of Imaginatik, commented, "We
believe we have now entered the 'age of innovation' - a unique time
in the world of business when globalisation, the availability of
data and the fast moving nature of product development means that
innovation is a required business competence to survive. It is now
imperative that companies understand how to innovate and adapt to
these fast-changing markets, yet many companies do not have the
internal processes or know how to make it a fundamental part of
their operations. This is our opportunity and our challenge.
Trading in the second half has begun well and, with a strong
pipeline of opportunities and renewals for the second half, we are
confident of a successful outcome for the year as a whole."
For further information please contact:
Imaginatik plc Tel: 020 7917
2975
Matt Cooper, Executive Chairman / Shawn
Taylor, CFO
Northland Capital Partners Limited Tel: 020 7796
8800
Edward Hutton / Tim Metcalfe
Newgate Threadneedle Tel: 020 7653
9850
Caroline Evans-Jones / Hilary Millar
About Imaginatik
Imaginatik provides a range of Innovation solutions comprised of
consultancy, enterprise software and program management to deliver
innovation results to companies such as The World Bank, The Chubb
Group of Insurance Companies, Boeing, Pfizer, Goodyear, Paccar,
Kellogg and Cargill. Few companies possess the internal capability
to consistently generate fresh ideas, identify those worth pursuing
and reliably transform them into real, value-enhancing assets.
Imaginatik's mission is to help these companies build sustainable
innovation competencies.
Imaginatik is a public company whose shares are traded on the
AIM market of the London Stock Exchange (LSE:IMTK.L) and is a World
Economic Forum Technology Pioneer with offices in Boston, MA, and
Fareham, UK. For more information visit www.imaginatik.com.
Introduction
We believe we have now entered the 'age of innovation' - a
unique time in the world of business when globalization, the
availability of data and the fast moving nature of product
development means that innovation is a required business competence
to survive. It is now imperative that companies understand how to
innovate and adapt to these fast-changing markets.
We continue to see evidence that companies are recognising this
requirement; for example the role of the Chief Innovation Officer
within a large enterprise is becoming more commonplace and
companies are now seeking external assistance in developing
innovation strategies. While many are making good progress in this
respect there remains substantial scope for improvement and this
presents a significant opportunity for us.
Over the past decade Imaginatik has built the skills,
competencies and insights to understand how innovation is best
achieved at scale. It is not the domain of a single individual, but
rather best accomplished through harnessing the collective wisdom
of a company's employees, customers and partners. Via a series of
processes, innovation can be learned, institutionalized and then
repeated. Our mission is to ensure innovation becomes embedded
within our customers, achieved through a mixture of sophisticated
software and market leading consultancy.
We continue to make good progress in the execution of our
strategy to provide a complete innovation solution comprising
software and consultancy, and are seeing a growing amount of
evidence vindicating our strategic direction. We continue to
receive market validation from industry research houses, such as
Forrester, from the increasing proportion of customers taking
consultancy services alongside our software offering and the
accelerated pace at which we have added new customers. We have also
been pleased by the positive response to our increased activities
in Europe, securing several new customers, with many more
opportunities in the pipeline.
We believe we now have the right strategy, the right people, the
most complete technology solution and the broadest consultancy
offering in the market. We are now moving into the next phase which
is a focus on the broader marketing of our business, raising
awareness of our offering in our two key markets of North America
and Europe.
Financial Review
Total revenue for the half year ended 30 September 2012
increased by 8% to GBP1.75 million (H1 2011: GBP1.62 million).
During the period, 7% of revenue was generated from up-selling our
software and consultancy services into existing customers, 69% from
selling into new customers, and 24% from recurring business (H1
2011: 18%: 29%: 53% respectively). We secured a significantly
higher level of new customers during the period, adding 17 (H1
2011: 6), with 9 of these being on annual contracts (H1 2011:
3).
The US continues to be our core market, with revenues generated
from the region in the period accounting for 93% (H1 2011: 98%).
The European market offers significant opportunity and, following
an increased presence in the region, we are encouraged by the
progress achieved in the period. Revenue from the European market
grew to 7% (H1 2011: 2%).
Investment into our technology and software platform remains a
key focus of the Company, and we have continued to invest in the
development of our software platform, including improved
functionality, multi-lingual capabilities and connectors for
various corporate platforms. During the period the Company has
capitalised development costs amounting to GBP0.12m, (H1 2011:
GBPnil) as the Company now meets the necessary accounting
requirements set out in IAS38: Intangible assets.
We have once again secured an R&D tax credit from HMRC of
GBP0.13 million (H1 2011: GBP0.11 million) reflecting the
pioneering nature of the research and development work we
undertake. This is reflected in the taxation line in the income
statement.
Administrative expenses for the period were GBP1.99 million, a
slight increase on the previous year (H1 2011: GBP1.96 million).
This was a result of the addition of senior headcount in the US and
Europe but mitigated by the capitalisation of certain development
costs referred to previously.
Operating losses before share-based payments have again been
reduced to GBP0.36 million (2011: GBP0.43 million) and is a
function of both the increase in revenues and the stable cost
base.
Cash outflows from operating activities narrowed to GBP1.01
million in the first six months of the year (H1 2011: GBP1.20
million). As a result of the strong close to the period, the
Company had short term receivables amounting to GBP1.74 million (H1
2011: GBP1.62 million) and longer term receivables amounting to
GBP0.34 million (H1 2011: nil). The longer term receivables arose
as a result of a number of multiyear contracts entered into during
the half. The vast majority of the short term receivables are
expected to be received in the second half of the year.
During the period the Company successfully concluded its
litigation against the former CEO Mark Turrell. In a concluding
hearing on the 27 September 2012 the High Court granted the Company
and Matt Cooper an order over all of Mr. Turrell's 64.4 million
shares in Imaginatik plc. Those shares have been split in an
equitable manner between the Company and Matt Cooper, as a result
the Company has an order over 54.1 million shares. It is the
Company's intention to dispose of the shares in an orderly manner.
Under IAS 32 the shares may only be recognized as an asset to the
Company at the point of disposal.
The Company completed a placing of new ordinary shares with
institutional and other investors in June 2012 raising GBP1.0
million before expenses. The net proceeds are being used to expand
the Company's US based sales team, to add further consultancy
capacity in both the US and European markets, to further develop
the Company's technology and to develop our branding and marketing
efforts.
Operational Review
Customers
During the period we added 17 new customers, compared to six in
the first half of the previous year. Of these, nine were annual
contracts, including Air Products and Chemicals, Inc. and Chartis
Global Services, Inc., and five were pilot projects, including
MillerCoors and Merck & Co., Inc., with the balance being
consultancy-led engagements.
The general economy stills poses a challenge, as evidenced by
the loss of three customers in the period due to budgetary
constraints. Each of these contracts was based on our 'old model'
with no consultancy support and we are confident that as an
increasing number of our customers rely on Imaginatik to provide
them with full innovation capabilities, we will increase the
resilience of our customer base.
Technology
The investments we have made in our technology platform over the
past year have been directed towards the expansion of our product
offerings. We now have a suite of products which spans the
innovation spectrum. Starting with Discovery Suite, which helps
customers identify where to focus their innovation efforts, through
its 'four lens' methodology, through to the core platform,
Innovation Central, which enables companies to engage the
collective brain power of their employees, partners and customers
in innovation challenges, and finally to Results Engine which
allows organizations to manage and track projects resulting in
implemented ideas.
Substantial progress has also been made during this period in
incorporating multi-lingual capabilities into the platform and
establishing connectors into some of the fastest growing corporate
platforms, such as SharePoint, Jive and Yammer. Both of these
initiatives are significantly increasing our addressable
market.
Consultancy
We are experiencing solid growth in the number of contracts for
consultancy where we provide both guidance to senior management on
their long-term innovation strategies and more targeted innovation
support in the form of new product, marketing and brand positioning
projects. Contracts in the period include with Mead Johnson,
Proctor & Gamble and The Society of Petroleum Engineers. In
addition, most new annual contracts and renewals now include some
element of operational consultancy, to ensure successful
implementation of challenges. The period also saw the Company
secure the first annual technology contract generated from a
consultancy lead. We believe these factors are a strong endorsement
of our strategy.
The focus in the second half of the year will be the further
integration of our technology and consultancy offering. This
includes the development and launch of a completely new innovation
offering that is supported by a new technology for creative
collaboration and insight generation. It will also include a suite
of new innovation programmes for senior management and innovation
teams designed to strengthen their innovation competency.
Sales and Marketing
Web-based lead generation continues to be a significant
contributor to our sales pipeline and as a result much focus in the
first half of the year has been on the development of a new website
to enhance our web presence. This project is approaching completion
and is expected to be launched in the second half of the year. We
continue to host well attended webinars on a regular basis, with
four taking place in the first half of the year. These are proving
to be a useful lead generation tool. This will be continued in the
second half of the year, supplemented by our annual Innovation
Leaders Forum which will take place in Boston the early part of
2013. In order to develop the business further we have secured
relationships with various third parties to assist with lead
generation in both the US and Europe which is delivering additional
opportunities.
Outlook
We continue to believe the prospects for Imaginatik to be
significant. Innovation is now a crucial business skill and yet
many companies do not have the internal processes or know how to
make it a fundamental part of their operations. This is our
opportunity and our challenge.
Trading in the second half has begun well and, with a strong
pipeline of opportunities and renewals for the second half, we are
confident of a successful outcome for the year as a whole.
Condensed unaudited consolidated interim statement of
Comprehensive Income
For the six months ended 30 September 2012
Unaudited Unaudited Audited
6 months 6 months Year to
to 30 Sept to 30 31 March
2012 Sept 2012
2011
Note GBP'000 GBP'000 GBP'000
Revenue 1,754 1,624 3,447
Cost of sales (170) (158) (321)
----------- --------- ----------------
Gross profit 1,584 1,466 3,126
Administrative expenses (1,997) (1,958) (4,211)
Operating loss before financing
and taxation (413) (492) (1,085)
Operating loss before share
option costs (363) (434) (976)
Share option costs (50) (58) (109)
--------------------------------- ---- ----------- --------- ----------------
Finance income/(costs) - - (8)
Loss on ordinary activities
before taxation (413) (492) (1,093)
Taxation 131 108 108
----------- --------- ----------------
Loss on ordinary activities
for the period (282) (384) (985)
----------- --------- ----------------
Basic and diluted loss per share
(p) 3 (0.04) (0.15) (0.28)
----------- --------- ----------------
All amounts are attributable to equity holders of the parent,
and all arise from continuing operations. No amounts were
recognised directly in equity, and therefore no separate statement
of comprehensive income has been presented.
Condensed unaudited consolidated interim Statement of Financial
Position
As at 30 September 2012
Unaudited Unaudited Audited
30 Sept 30 Sept 31 March
2012 2011 2012
Note GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and equipment 46 70 51
Intangible assets 161 73 51
Trade & other receivables 346 - 106
--------- --------- ---------
553 143 208
Current assets
Trade and other receivables 1,735 1,624 1,034
Cash and cash equivalents 305 244 543
2,040 1,868 1,577
--------- --------- ---------
Total assets 2,593 2,011 1,785
--------- --------- ---------
EQUITY AND LIABILITIES
Equity
Issued capital 341 267 321
Share premium 6,591 5,539 5,704
Other reserves 5 (5,706) (4,924) (5,474)
--------- --------- ---------
Total equity attributable to equity
holders of the parent 1,226 882 551
--------- --------- ---------
Liabilities
Non-current liabilities
Other payables - - 136
--------- --------- ---------
Total non-current liabilities - - 136
--------- --------- ---------
Current liabilities
Trade and other payables 1,367 1,129 1,098
1,367 1,129 1,098
--------- --------- ---------
Total liabilities 1,367 1,129 1,234
--------- --------- ---------
Total equity and liabilities 2,593 2,011 1,785
--------- --------- ---------
Condensed unaudited consolidated interim statement of cash
flows
For the six months ended 30 September 2012
Unaudited Unaudited Audited
6 months 6 months Year to
to 30 Sept to 30 Sept 31 March
Note 2012 2011 2012
GBP'000 GBP'000 GBP'000
Cash outflows from operating activities 6 (1,007) (1,204) (1,115)
----------- ----------- ---------
Investing activities
Acquisition of property, plant and
equipment (18) (1) (9)
Acquisition of intangible assets (120) - -
----------- ----------- ---------
Net cash used in investing activities (138) (1) (9)
----------- ----------- ---------
Net cash flow before financing activities (1,145) (1,205) (1,124)
----------- ----------- ---------
Financing activities
Net proceeds from the issue of share
capital 907 980 1,199
Net cash generated from financing
activities 907 980 1,199
----------- ----------- ---------
Net (decrease)/increase in cash and
cash equivalents (238) (225) 75
Cash and cash equivalents at start
of period 543 469 469
Net foreign exchange difference - - (1)
----------- ----------- ---------
Cash and cash equivalents at end
of period 305 244 543
----------- ----------- ---------
Condensed unaudited consolidated interim statement of changes in
equity
For the six months ended 30 September 2012
Share Share Share option Retained
capital premium reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 April 2011 135 4,691 655 (5,253) 228
--------- --------- ------------- ---------- --------
Loss for the period - - - (384) (384)
Share option costs - - 58 - 58
Shares issued 132 848 - - 980
--------- --------- ------------- ---------- --------
132 848 58 (384) 654
Balance at 30 September
2011 267 5,539 713 (5,637) 882
--------- --------- ------------- ---------- --------
Loss for the period - - - (601) (601)
Share option costs - - 51 - 51
Shares issued 54 165 - - 219
--------- --------- ------------- ---------- --------
54 165 51 (601) (331)
Balance at 31 March 2012 321 5,704 764 (6,238) 551
--------- --------- ------------- ---------- --------
Loss for the period - - - (282) (282)
Share option costs - - 50 - 50
Shares issued 20 887 - - 907
--------- --------- ------------- ---------- --------
20 887 50 (282) 675
Balance at 30 September
2012 341 6,591 814 (6,520) 1,226
--------- --------- ------------- ---------- --------
Notes to the unaudited condensed consolidated interim financial
statements
1. Background
Imaginatik plc (the "Company") is a company domiciled in the
United Kingdom. The unaudited condensed consolidated interim
financial statements of the Company for the six months ended 30
September 2012 comprise the Company and its subsidiary (together
referred to as the "Group").
The condensed consolidated interim financial statements were
authorised for issue on 21 November 2012.
The interim financial statements are not statutory accounts for
the purposes of section 435 of the Companies Act 2006. The
comparative figures for the year ended 31 March 2012 are not the
Company's statutory accounts for that financial year. The financial
information for the year ended 31 March 2012 is based on the
statutory accounts for the financial year ended 31 March 2012
restated for the effects of the adoption of International Financial
Reporting Standards in issue and adopted for use in the European
Union ("IFRSs"). Those accounts have been reported on by the
Company's auditors and delivered to the Registrar of Companies. The
report of the auditors was (i) unqualified, (ii) did not include a
reference to any matters to which the auditors drew attention by
way of emphasis without qualifying their report, and (iii) did not
contain a statement under section 498(2) or (3) of the Companies
Act 2006.
2. Basis of preparation
The financial statements are presented in pounds sterling,
rounded to the nearest thousand, unless stated otherwise. They are
prepared on the historical cost basis.
These interim financial statements have been prepared using
accounting policies based on IFRS as adopted by the European Union
(including IAS and interpretations issued by the International
Financial Reporting Interpretations Committee ("IFRIC")) that are
expected to be applicable for the full reporting year in 2012.
These remain subject to ongoing amendment and/or interpretation and
are therefore subject to possible change. Consequently, information
contained in these interim financial statements may need updating
for any subsequent amendments to IFRS, or for any new standards
that the Group may elect to adopt early.
The accounting policies have been applied consistently
throughout the Group for purposes of these condensed unaudited
consolidated interim financial statements.
3. Loss per share
Basic loss per share
The calculation of basic loss per share for the period ended 30
September 2012 was based on the loss attributable to ordinary
shareholders of GBP282,000 (period ended 30 September 2011:
GBP384,000; year ended 31 March 2012: GBP985,000) and a weighted
average number of ordinary shares outstanding during the period
ended 30 September 2012 of 684,252,511 (period ended 30 September
2011: 256,097,842; year ended 31 March 2012: 347,464,893).
Diluted loss per share
The options in place during the periods ended 30 September 2012
and 30 September 2011 and during the year ended 31 March 2012 are
considered to have an anti-dilutive effect. Therefore, basic and
diluted loss per share is the same for each of the three
periods.
4. Segment reporting
Segment information is presented in the condensed consolidated
interim financial statements in respect of the Group's geographical
segments, which are the primary basis of segment reporting. The
geographical segment reporting format reflects the Group's
management and internal reporting structure.
Segment results include items directly attributable to a segment
as well as those that can be allocated on a reasonable basis.
Geographical segments
The Group's operations comprise the following main geographical
segments, determined on the basis of the location of customers:
Unaudited Unaudited Audited
6 months 6 months Year to
to 30 Sept to 30 Sept 31 March
2012 2011 2012
GBP'000 GBP'000
Segment revenue
United States of America 1,633 1,590 3,122
Rest of the world 121 34 325
1,754 1,624 3,447
----------- ------------ ---------
Segment (loss)
United States of America (253) (163) (896)
Rest of the world (29) (221) (89)
----------- ------------ ---------
(282) (384) (985)
----------- ------------ ---------
Unaudited Unaudited Audited
30 Sept 30 Sept 31 March
2012 2011 2012
Segment total assets GBP'000 GBP'000 GBP'000
United States of America 2,054 1,517 1,333
Rest of the world 538 494 452
----------- ------------ ---------
2,592 2,011 1,785
----------- ------------ ---------
5. Share Capital and Reserves
Unaudited Unaudited Audited
6 months 6 months Year to
to 30 Sept to 30 Sept 31 March
2012 2011 2012
GBP'000 GBP'000 GBP'000
Share Capital
At the beginning of the period 321 135 135
Shares issued 20 132 186
----------- ----------- ---------
At the end of the period 341 267 321
----------- ----------- ---------
Share premium
At the beginning of the period 5,704 4,691 4,691
Shares issued in the period, net of
expenses 887 848 1,013
----------- ----------- ---------
At the end of the period 6,591 5,539 5,704
----------- ----------- ---------
Other reserves
At the beginning of the period (5,474) (4,598) (4,598)
Loss for the period (282) (384) (985)
Share-based payments 50 58 109
----------- ----------- ---------
At the end of the period (5,706) (4,924) (5,474)
----------- ----------- ---------
6. Cash flows from operating activities
Unaudited Unaudited Audited
6 months 6 months Year to
to 30 Sept to 30 Sept 31 March
2012 2011 2012
GBP'000 GBP'000 GBP'000
Operating loss (282) (384) (1,085)
Depreciation of tangible fixed assets 23 31 59
Amortisation of intangible fixed assets 10 31 53
Share-based payment expense 50 58 109
----------- ----------- ---------
Operating cash flows before movements
in working capital (199) (264) (864)
(Increase) in trade and other receivables (941) (641) (157)
(Decrease) / increase in payables 133 (299) (194)
Net movement in working capital (808) (940) (351)
----------- ----------- ---------
Cash used by operations (1,007) (1,204) (1,215)
----------- ----------- ---------
Corporation tax received - - 108
Net interest expense - - (8)
----------- ----------- ---------
Net cash from operating activities (1,007) (1,204) (1,115)
----------- ----------- ---------
7. Availability of announcement
Copies of this announcement will be available from the Company's
offices at Carnac Cottage, Cams Hall Estate, Fareham, Hampshire,
PO16 8UU and from its website, www.imaginatik.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BKKDNOBDDADB
Abal (LSE:ABAL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Abal (LSE:ABAL)
Historical Stock Chart
From Jul 2023 to Jul 2024
