Imaginatik PLC Contract Wins and Trading Update (7282E)
April 14 2014 - 2:00AM
UK Regulatory
TIDMIMTK
RNS Number : 7282E
Imaginatik PLC
14 April 2014
14 April 2014
Imaginatik Plc
("Imaginatik" or the "Company")
Contract Wins and Trading Update
Imaginatik plc (AIM: IMTK.L), the world's first full service
innovation provider, is pleased to announce it has signed a further
two new customers in the final month of its financial year, both on
multi-year contracts, adding to the Company's growing roster of
blue chip customers and increasing levels of revenue visibility for
future years.
The new customers are one of the most highly rated US mutual
insurance companies and a major European airline.
These bring the total number of new customers secured in the
second half of the year to eight, versus seven in the second half
of the prior year.
As a result of the number of new multi-year contracts and
multi-year renewals in the year, total bookings for the year ended
31 March 2014 are expected to show a solid increase, approximately
GBP3.4m versus GBP2.8m in FY13. Recognised revenue for the year is
expected to be broadly flat compared to the prior year at
approximately GBP2.9m (FY13: GBP3.0m), with an increased loss of
approximately GBP1.45m (FY13: GBP1.15m) due to the increased
investment in sales and consultancy personnel. Deferred revenue is
expected to have increased to approximately GBP2.9m (FY13:
GBP2.4m).
The sales team was considerably strengthened during the year,
adding three new senior people in Boston with experience of selling
combined consultancy and technology offerings to senior management.
Their contribution to revenues in FY14 was minimal, however the
Board is confident they will have a positive impact in the current
financial year and beyond.
Funding Update
Cash balances at the year-end were GBP0.05m (FY13: GBP0.136m).
In order to fund the current working capital requirements of the
Company, Matt Cooper, Executive Chairman, has provided a loan for
the amount of GBP0.07m and has agreed to lend up to a further
GBP0.1 million ("the Loan"). The Loan is interest free, unsecured
and has no fixed term. The Directors are aware of the ongoing
requirement for sufficient working capital and are currently in
discussions with institutional and other investors regarding the
future funding arrangements of the Company. An update will be made
to the market in due course.
As Matt Cooper is director of the Company, the Loan constitutes
a related party transaction for the purposes of AIM Rule 13. The
independent directors, having consulted with the Company's
nominated adviser, finnCap Limited, consider that the terms of the
Loan are fair and reasonable insofar as the Company's shareholders
are concerned.
Matt Cooper, Executive Chairman of Imaginatik, commented, "We
are pleased to welcome further new blue chip customers to our
growing roster. This has resulted in a strong end to the financial
year. Imaginatik has closed the year with good momentum, a sales
pipeline that is significantly larger than that of the prior year
and an increased level of deferred revenue to be recognised in
future periods."
For further information please contact:
Imaginatik plc Tel: 01329
243243
Matt Cooper, Executive Chairman
/ Shawn Taylor, CFO
finnCap Tel: 0207
220 0500
Charlotte Stranner/ Victoria
Bates
Newgate Threadneedle Tel: 020 7653
9850
Caroline Forde / Hilary Millar
About Imaginatik
Imaginatik(R) is the world's first full-service innovation
provider. We have 16 years of experience building innovation into a
sustainable competence at some of the world's largest and most
respected companies. Through a mix of consulting and advisory,
hands-on innovation projects and program management, and our
award-winning enterprise software platform, we help clients develop
innovation capability into a permanent competitive advantage.
Imaginatik is the trusted partner of leading organisations
including Blue Cross Blue Shield, CSC, Cargill, The World Bank,
Mayo Clinic, The Chubb Group of Insurance Companies, HCA, Dow
Chemical and Goodyear.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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