TIDMIMTK
RNS Number : 9727K
Imaginatik PLC
01 July 2014
1 July 2014
Imaginatik Plc
("Imaginatik" or the "Company")
Final Results
Imaginatik plc (AIM: IMTK.L), the world's first full service
innovation provider offering a range of consultancy and technology
products, announces its audited results for the year ended 31 March
2014.
Imaginatik enables organisations to compete in the
information-rich, rapidly-changing 21(st) century by helping them
build a sustainable innovation discipline.
Key points
-- Gross bookings increased to GBP3.44m (FY13: GBP2.78m)
-- Recognised revenue broadly flat at GBP2.90m (FY13: GBP3.01m)
-- Deferred revenue increased significantly to GBP3.03m as of 31
March 2014 (31 March 2013: GBP2.40m)
-- Sales pipeline increased to GBP6.55m in April 2014 (April 2013:GBP3.64m)
-- Loss after tax* of GBP1.47m (FY13: GBP1.14m)
-- 15 new blue chip customers secured in the year, including a
major Canadian bank, a leading construction business, one of the
most highly rated US mutual insurance companies and a major
European airline
-- Good client retention: 14 of the 16 clients whose contracts
were up for renewal in the year to 31 March 2014 chose to
re-contract with the Company, four of which entered into multi-year
contracts (FY13: 12 out of 18)
-- Launch of three new consultancy offerings
-- Strengthened sales team, adding new senior people in Boston
with experience of selling combined consultancy and technology
offerings to senior management
-- Placing in May 2013 raising GBP1.26m before expenses
Post period highlights
-- Placing in May 2014 raising GBP1.26m before expenses
-- Five further blue chip businesses added to the customer base
* before exceptional items
Matt Cooper, Executive Chairman of Imaginatik, commented, "We
are pleased with the progress made during the year against our key
strategic objectives, giving us confidence that our strategy is
appropriate for our market. We have seen good customer retention
and a solid increase in the sales pipeline over the past year. As a
result of these early positive indicators, we remain committed to
our stated strategy and will continue to invest in the business to
ensure our success in the marketplace.
"We have made steady progress in the first quarter of the new
year, adding five additional customers to our client roster. The
focus for the remainder of the year will be on building the sales
momentum, growing the awareness of our brand and taking our new
product offerings out to the market. With what we believe to be the
right strategy, a strong team and extended offering, we are
confident in the future success of Imaginatik."
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. 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.
Chairman's statement
We remain encouraged by the significant market opportunity
available to us, driven by a growing awareness that a deep
innovation competency is critical not only to business success, but
to business survival. While the acceleration of our growth has been
slower than initially expected, we are seeing strong growth in the
sales pipeline supported by strong indicators that innovation at a
corporate level is gaining wider recognition as an essential
element of any long term business vision. The market continues to
evolve in the way we have predicted, with consultancy playing a
greater role alongside technology and a growing awareness of
innovation as a stand-alone industry. We are confident this will
translate into sales.
Key industry developments over the last year, such as the first
global Chief Innovation Officer summit in both New York and London,
increased industry analyst coverage of the sector, and positive
feedback from existing and new customers and other industry players
have given us confidence that our proposition as an end-to-end
innovation provider is the right one for the market in which we
operate. We continue to see a growing number of customers and
prospective customers elevating innovation to the top of corporate
agendas, but who are struggling to implement a sustained and
entrenched culture of innovation beyond the superficial level. A
global innovation survey that we undertook during the year found
that corporate innovation as a structured discipline is still in
its infancy. While leadership has the drive and ambition to make
innovation a sustained competency, the actual implementation of
that vision is uneven.
Our dual focus on Innovation Mind and Body is a necessity for
making innovation a powerful contributor to our customers' growth
agendas and ultimately their bottom lines. Companies that focus
primarily on operational implementation (Innovation Body)
predictably achieve only modest incremental returns despite large
ambitions - because along the way they lose the strategic picture.
In contrast, companies that focus primarily on strategy (Innovation
Mind) predictably fail to implement the chosen transformation
agenda successfully - because the operational side of the business
is unwilling to venture so far into uncharted waters. By focusing
on both the Mind and Body, we are uniquely positioned to achieve
powerful innovation wins that take root in a lasting change and
transformation agenda across large organisations.
We believe that our repositioning and the direction we have
taken over the previous two years, including important internal
developments over the last year, described below, leave us ideally
suited to address this growing need in the market. Our strategy has
been to develop a range of innovation solutions that combine both
technology and consulting which we believe are the two elements
that are jointly required to deliver real innovation change for our
customers. During the year we launched three new offerings,
integrating both software and consulting. Each offering leverages
our existing technology asset base, extends our consulting reach at
senior executive levels and represents an increased opportunity for
us to deliver on significantly larger sized engagements. We are
seeing encouraging early uptake of each three offerings. We believe
we are the only provider in the market that offers such a
comprehensive solution set and it is our intention to add to this
set in the future.
We have made good progress against our key strategic objectives
during the year. We have started seeing evidence of selling into
more senior level executives within our customer and prospect base,
moving away from a pure technology sale. This trend is also
supported by a growing proportion of deals signed having a greater
emphasis on consultancy and a rich vein of consulting opportunities
within our sales pipeline.
We have seen strong customer retention and a solid increase in
the sales pipeline over the past year. As a result of these early
positive indicators, we remain committed to our stated strategy and
will continue to invest in the business to ensure our success in
the marketplace. During the year we have increased the size and
capabilities of the sales team with a number of key senior hires.
This is to ensure we are well placed to sell more complex solutions
in line with the market trend toward combined consultancy and
technology sales. The impact on the Company's business of this new
team is yet to be felt in terms of revenue during the last
financial year, but the sales pipeline has grown substantially,
from approximately GBP3.64m in April 2013 to GBP6.55m in April
2014. This is evidence of good progress, however given the typical
length of contract negotiations with large blue chip organisations,
this increased pipeline will take time to flow through into
recognised revenues.
We are pleased with the response from institutional
shareholders, both existing and new, and the Board and management,
who provided us with additional funding both during the year and
post period end. This gives us the financial strength to continue
to build the business, including increasing marketing activities
and further enhancing the sales team as and when required. We are
continuing with our search for a full time CEO and I look forward
to updating the market later this year.
We look forward to the continued roll out of our strategy, with
a consistent focus this year on winning new consultancy deals as
well as deepening our engagement within the existing customer base.
With a healthy pipeline of new business, an enhanced sales team and
growing market opportunity, we believe we are well positioned to
achieve a leading position in the innovation market over the next
few years.
I would like to thank all Imaginatik's staff, partners and
customers for their enthusiasm for our business and what we are
trying to achieve.
Matt Cooper
Executive Chairman
30 June 2014
Strategic Report
Imaginatik is the world's first full-service innovation firm.
Through a mix of consulting and advisory, hands-on innovation
projects and programme management, and award-winning enterprise
software, we provide a more complete set of innovation products and
services than others in the industry, turning our clients'
innovation programmes into competitive advantage.
Imaginatik helps clients develop a sustainable innovation
competence. Many organisations achieve innovation excellence once;
very few can innovate repeatedly over the long term. Yet innovation
is the most important factor for success or failure in today's
marketplace. Our strategy continues to be to focus on the
"Innovation Body and Mind", providing both the strategic
consultancy but also the structure to implement at an operational
level - the technology, process and training of people. Through
this approach we have generated substantial, identifiable returns,
helped our clients launch new product lines, increase customer
service and revenues, reduce costs and revolutionise
operations.
KPIs & Financial Review
The key performance indicators on which we judge the success of
our business are the following:
KPI 2014 2013
Number of customers renewing their
contracts 14/ 16 12/ 18
----------- -----------
Number of new customer wins in
the year 15 24
----------- -----------
% of contracts signed that include
consultancy 47% 42%
----------- -----------
Gross bookings GBP3.44m GBP2.78m
----------- -----------
Recognised revenue GBP2.90m GBP3.01m
----------- -----------
Size of the sales pipeline at GBP6.55m GBP3.64m
year end
----------- -----------
Net result before exceptional GBP(1.47m) GBP(1.14m)
costs
----------- -----------
We have seen new customer wins and strong customer retention
over the past year. We added 15 clients in the year in a mixture of
annual license contracts as well as consulting engagements (FY13:
24). New customers include a major Canadian bank, a global
infrastructure business, one of the most highly rated US mutual
insurance companies and a major European airline. Of the 15 new
customers secured in the year, 6 were on annual or multiyear
contracts (FY13: 13).
While new customer wins were down on the prior year, they were
of a greater average value and for longer terms. This, combined
with an increased level of renewals, renewing with 14 out of 16
clients, compared to 12 out of 18 in the prior year, resulted in an
increased gross bookings value in the year of GBP3.44 million
versus GBP2.78 million in FY13.
Of the total bookings figure, 25% was from up-selling our
software and consultancy services into existing customers, 40% from
selling into new clients, and 35% from renewals business (FY13:
13%: 60%: 27% respectively).
Recognised revenue for the year was broadly flat compared to the
prior year at GBP2.90 million (FY13: GBP3.01 million). While the US
continues to be our core market, with revenues recognised from the
region in the period accounting for 77% of the total (2013: 88%),
the European market had an improved performance in the year,
increasing its contribution and we expect this to continue in the
current financial year.
Overall, we were behind where we had planned to be in terms of
revenue for the year as a whole, due to a slower than anticipated
conversion of the sales pipeline into closed contracts during the
year. However with momentum in the sales pipeline building in the
second half we feel confident the business is set to grow in the
years ahead. The sales pipeline grew from approximately GBP3.64m in
April 2013 to GBP6.55m in April 2014.
We have concluded the financial year with a healthy sales
pipeline and, given the significant market opportunity and clear
roadmap in place, we believe we are on the right path to revenue
growth and subsequent move into profitability in future years.
Administrative costs before exceptional costs increased in the
year to GBP4.19 million (FY13: GBP3.98 million), reflecting
increased investment in sales and consultancy personnel in the
US.
This resulted in an increased loss after tax before exceptional
costs of GBP1.47 million (FY13: GBP1.14 million). The higher gross
bookings in the year resulted in deferred revenues increasing to
GBP3.03 million as at 31 March 2014 (FY13: GBP2.40 million).
The exceptional costs are those incurred in connection with the
placing in May 13, as described below. The shares were issued at
nominal value and not above nominal value. The Companies Act
prohibits the costs associated with this placing being charged to
the share premium account.
Investment into our technology platform remains a key focus of
the Company and during the period, the Company capitalised internal
development costs amounting to GBP0.12 million (FY13: GBP0.23
million).
The Company secured an R&D tax credit from HMRC of GBP0.10
million (FY13: GBP0.13 million) reflecting the pioneering nature of
the research and development work we undertake. This is reflected
in the taxation line in the consolidated statement of comprehensive
income.
Cash outflows from operating activities were GBP1.35 million
(FY13: GBP1.07 million). These outflows were met through the
institutional fundraising, referred to below.
The Company completed a placing of new ordinary shares with
institutional and other investors in May 2013 raising approximately
GBP1.26 million before expenses. In addition, as part of the May
2013 funding round, certain of the Directors committed to being
paid a proportion of their salary in equity, subscribing for
262,400,000 new ordinary shares, raising a further GBP164,000. In
addition to providing working capital, these funds have
strengthened the financial position of the Company, providing
reassurance to existing and new clients as to the Company's
continued ability to provide and to develop its software and range
of consulting services. The funds are being used to expand
Imaginatik's sales and consulting capacity in the US and European
markets.
Costs relating to the above placing were GBP143,000 and have
been included in profit or loss as exceptional items.
In September 2013, the Company sold 54,053,815 ordinary shares
in the share capital of the Company that it was awarded in October
2012 as a result of the litigation with the former CEO. The total
consideration received as a result of this sale of shares was
GBP0.04 million and has been accounted for as a movement in
retained earnings.
In May 2014, post the year end, the Company completed a further
placing with investors raising GBP1.26 million (before expenses) to
provide additional working capital to fund the continued
development of the Group's business.
Operational Review
We continue to invest in the business, developing our core
competencies in technology, consultancy and sales and
marketing.
Consultancy
We have been intensely focused on developing our consultancy
offering, which we believe to be a compelling proposition in the
market, differentiating us from our competitors. A competitor
offering both the Innovation Body and Mind has yet to appear.
We have been pleased with the response to the three new
integrated consultancy and technology offerings launched during the
year. They have been readily accepted as proofs of concept by our
customer base and we have made significant progress building our
pipeline of sales opportunities for each of the offerings in the
year under review and post period end. We will continue to promote
them in the year ahead. As a reminder, they are:
Innovation Governance
The offering is primarily a consultative and coaching model of
engagement, leveraging our decision making and innovation
monitoring tools. Innovation Governance targets the needs of senior
executives to improve their capability in executing on an
innovation agenda and attaining results. It represents an
opportunity for Imaginatik to engage more fully in the back end of
innovation, putting in place the operational model (roles, metrics,
process, portfolio, systems, structures) necessary for innovation
to demonstrate measurable value. We have been successful in
identifying and pursuing significant new opportunities that
increased both the size and scope of our typical consulting
proposals, and proving our competitiveness against other renowned
innovation consultancies.
Discovery
Building on the success of our newly launched Discovery Central
offering, we have extended the application of our Discovery method
into a business strategy approach to identify disruptive innovation
and white space, enabling the client to enter unchartered
territories. It positions us distinctly from existing competitors
in innovation strategy in that we can uniquely bring to bear a
range of virtual tools and live facilitation approaches to not only
define but also to help executives execute and monitor progress
against expectations. During this period, we continued to iterate
the Discovery Central platform, incorporating our proprietary
analytics and additional capabilities further differentiating us in
the market. Our Discovery approach has proven to be a successful
lever in extending our reach inside existing client organisations,
enabling us to grow our revenue base and engage more with senior
executives. We are encouraged by client and market feedback, and
continue to see a pipeline of opportunities both in the UK &
US. This offering is intended to feed our existing challenge work
and provide a purposeful hook for our 3rd integrated offering:
'people centric'.
People Centric
This offering capitalises on the corporate trend in social
enterprise and is targeted at innovation leaders who want to drive
collaboration, leverage their human capital and get more out of
their existing investment in social technologies. The goal is to
build and scale communities of practice across an organisation,
engaging them in purposeful and deliberate ways that both generate
ideas and build core knowledge. The offering is underpinned by our
core software tools and analytics and is successfully driving
additional demand for these tools inside the organisations we
currently serve and with new prospects. Our goal is to ultimately
secure larger consulting engagements around building full scale
innovation programs.
Technology
Our consulting offerings are supported by an award winning
enterprise innovation platform, Innovation Central, providing the
tools to deliver innovation competencies throughout the innovation
life-cycle. We have continued to invest in the platform over the
year, developing connectors that link the platform to enterprise
social business applications, making it easier for our customers to
engage their employees, and allowing workstreams to readily pass
from one platform to the other. During the year we completed the
work on making our platform truly multilingual and this in now in
use with several customers on their global innovation initiatives.
Finally, to ensure we are best positioned to serve large and
well-established innovation programs, we have built algorithm-based
analytics tools that enable sophisticated filtering and executive
decision-making on very large volumes of ideas and social
collaboration activity.
We remain committed to ensuring our platform is market leading
and increasing the differentiation of our platform. Plans for the
current year include the addition of innovative collaboration
capabilities to the platform, further investment in decision
support tools for innovation portfolio managers, development of new
tools aimed at helping customers to action their ideas, and the
provisioning of modern collaboration interfaces across platforms,
to encourage innovative activity across organisations.
Sales and Marketing
Imaginatik's go-to-market strategy rests on building a strong
public brand around innovation as a dedicated enterprise
competence. As such, significant work has been done to establish
foundational principles of Imaginatik's brand-related IP and
thought leadership platform. In parallel, we have continued to
re-position our offerings and business in line with this goal, with
the expectation of pushing the brand much more publicly and visibly
in the coming year. The repositioning of the business towards
providing an end to end innovation service has removed the reliance
on a single software offering and has allowed the Company to move
away from selling to technologists who frequently have a more
limited budget, to selling into more senior executives with a
longer term vision for how a sustained innovation competence can
help benefit their businesses and who often have a more substantial
budget.
The sales team was strengthened during the year to support this
positioning, adding 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.
Marketing efforts in the period have been focused on furthering
Imaginatik's ability to sell and deliver integrated innovation
consulting and software solutions to senior decision-makers. We
have developed core thought leadership around high level issues
such as growth strategy, competitive differentiation and the
customer experience. Furthermore, we have increased outbound
appointment setting and conference attendance, and increased our
use of webinars and blog channels. All of these have combined to
enhance our ability to move sales prospects more rapidly through
Imaginatik.
In the year ahead we will continue to invest in raising the
profile of the brand, as well as investing in further sales people
to capitalise on our unique proposition and ensuring that we have
the scale required to enter a period of growth.
Principal risks and uncertainties
The Group's financial and operational performance is subject to
a number of risks. The Board seeks to ensure that appropriate
processes are put in place to manage, monitor and mitigate these
risks. The Board considers the principal risks faced by the Group
to be as follows:
Loss of major customers
The Group has a small number of major customers. Accordingly,
there is a risk of loss of major clients that could result in a
reduction in revenue. The Group endeavours to provide an excellent
service to customers at competitive pricing. In the event of the
loss of a major customer, steps would be taken to reduce the
Group's cost base.
Customer failure
The Group has a small number of major customers and,
accordingly, is exposed to potentially significant bad debts should
a major customer become insolvent. The Group operates a credit
control policy to reduce the risk of customer failure, although the
Group does not have credit insurance in place.
Competition
The Group's competitors may offer superior services to the
market or lower prices, which could reduce the attractiveness of
the Group's services and result in a reduction in revenue. In the
event of a significant reduction in revenue, steps would be taken
to reduce the Group's cost base.
Attraction and retention of Directors and key employees
The success of the Group depends on the abilities and experience
of the Directors and key employees. The loss of Directors and key
employees or the inability to recruit replacements or further
Directors or key employees could have a significant adverse effect
on the day to day running of the Group and on the development of
the Group's business. The Group seeks to reward Directors and key
employees at appropriate levels, including the provision of equity
incentive schemes, designed to attract and retain Directors and key
employees of appropriate calibre.
Financial risks
The Group finances its operations through a mixture of cash
generated from operations and, where necessary to fund expansion or
capital expenditure programmes, through leasing or the proceeds of
the issue of new equity in the Company.
Management's objectives are to:
- Retain sufficient liquid funds to enable the Group to meet its
day to day obligations as they fall due whilst maximising returns
on surplus funds; and
- Match the repayment schedule of any external borrowings with
the expected future cash flows expected to arise from the Group's
trading activities.
As all of the Group's surplus funds are invested in Pound
Sterling and US Dollar bank deposit accounts, foreign exchange risk
arises.
The Group's surplus funds are held primarily in short term
variable rate deposit accounts. The Directors believe that this
gives them the flexibility to release cash resources at short
notice and also allows them to take advantage of changing
conditions in the finance markets as they arise.
Foreign exchange risk arises because the Group has operations
located in various parts of the world whose functional currency is
not the same as the functional currency in which the Group
companies are operating. The Group's policy is, where possible, to
allow entities to settle liabilities denominated in their
functional currency with the cash generated from their own
operations in that currency.
Board Changes
The search for a full time CEO is ongoing. The Company has
engaged a US based search firm to assist with the process, we look
forward to updating the market once a decision has been made,
expected to be later in the current year. As previously stated,
once the Company secures the services of a suitable candidate, Matt
Cooper will become the Non-Executive Chairman of the Company.
There have been changes to the Board composition this year. In
June 2013, the number of board members was reduced from six to
four, which is considered more appropriate for a company of our
size. Nick Goss (CTO) and Luis Solis (President, Americas) both
stepped down from their positions on the Board.
David Gammon stepped down from the Board as a non-executive
director of the Company upon completion of the placing of new
ordinary shares in the Company on 15 May 2014. The Board thanks him
hugely for his strategic and wise counsel since the time of his
appointment and wishes him well for the future. Simon Charles has
now assumed the chairmanship of the audit committee in addition to
that of the remuneration committee.
Current Trading and Outlook
We have made steady progress in the first quarter of the new
year, adding five additional customers to our client roster. We are
confident in our strategy and remain encouraged by the early
progress achieved against our strategic objectives. The focus for
the remainder of the year will be on building the sales momentum,
growing the awareness of our brand and taking our new product
offerings out to the market. With what we believe to be the right
strategy, a strong team and extended offering, we are confident in
the future success of Imaginatik.
Approved by the Board and signed on its behalf by:
Shawn Taylor
Chief Operating and Financial Officer
30 June 2014
Consolidated Statement of Comprehensive Income for the Year
Ended 31 March 2014
2014 Before 2014 Exceptional
exceptional items
items 2014 2013
Note GBP 000 GBP 000 GBP 000
Revenue 3 2,899 - 2,899 3,009
Cost of sales (261) - (261) (295)
------------ ---------------- -------- --------
Gross profit 2,638 - 2,638 2,714
Administrative expenses (4,185) (143) (4,328) (3,980)
------------ ---------------- -------- --------
Operating loss (1,547) (143) (1,690) (1,266)
Finance costs (24) - (24) (7)
------------ ---------------- -------- --------
Loss before tax (1,571) (143) (1,714) (1,273)
Income tax receipt 105 - 105 131
------------ ---------------- -------- --------
Loss on ordinary activities for
the year and total comprehensive
income (1,466) (143) (1,609) (1,142)
============ ================ ======== ========
Loss per share - Basic and diluted 5 0.05p - 0.06p 0.15p
============ ================ ======== ========
Consolidated Statement of Financial Position as at 31 March
2014
Restated
2014 2013
Note GBP 000 GBP 000
Assets
Non-current assets
Property, plant and equipment 26 29
Intangible assets 291 254
Trade and other receivables 329 339
-------- --------
646 622
-------- --------
Current assets
Trade and other receivables 1,614 1,063
Cash and cash equivalents 94 136
-------- --------
1,708 1,199
-------- --------
Total assets 2,354 1,821
======== ========
Equity and liabilities
Equity
Share capital 6 1,940 528
Share premium 6,405 6,405
Other reserves 967 843
Retained earnings (10,409) (8,838)
-------- --------
Equity attributable to owners of the
company (1,097) (1,062)
-------- --------
Non-current liabilities
Deferred income 1,079 115
Current liabilities
Trade and other payables 2,372 2,768
-------- --------
Total liabilities 3,451 2,883
-------- --------
Total equity and liabilities 2,354 1,821
======== ========
Consolidated and Company Statement of Cash Flows for the Year
Ended 31 March 2014
2014 2013
Note GBP 000 GBP 000
Cash flows from operating activities
Loss for the year (1,609) (1,142)
Adjustments to cash flows from non-cash
items
Depreciation and amortisation 4 105 62
Share based payment transactions 124 79
Income tax credit (105) (131)
-------- --------
(1,485) (1,132)
Working capital adjustments
Increase in trade and other receivables (541) (262)
Increase in trade and other payables 568 191
-------- --------
Cash generated from operations (1,458) (1,203)
Income taxes received 105 131
-------- --------
Net cash flow from operating activities (1,353) (1,072)
-------- --------
Cash flows from investing activities
Acquisitions of property plant and
equipment (18) (17)
Acquisition of intangible assets (121) (226)
-------- --------
Net cash flows from investing activities (139) (243)
-------- --------
Cash flows from financing activities
Proceeds from issue of ordinary shares,
net of issue costs 1,412 908
Proceeds from disposal of treasury
shares 38 -
-------- --------
Net cash flows from financing activities 1,450 908
-------- --------
Net decrease in cash and cash equivalents (42) (407)
Cash and cash equivalents at 1 April 136 543
-------- --------
Cash and cash equivalents at 31 March 94 136
======== ========
Consolidated Statement of Changes in Equity for the Year Ended
31 March 2014
Share Other Retained Total
Share capital premium reserves earnings Total equity
GBP 000 GBP 000 GBP 000 GBP 000 GBP 000 GBP 000
At 1 April 2012 321 5,704 764 (7,696) (907) (907)
------------- -------- --------- --------- -------- --------
Employee share-based
payment options - - 79 - 79 79
Issue of share capital
(restated) 207 701 - - 908 908
------------- -------- --------- --------- -------- --------
Transactions with owners
(restated) 207 701 79 - 987 987
Loss for the year and
total comprehensive
income - - - (1,142) (1,142) (1,142)
------------- -------- --------- --------- -------- --------
At 31 March 2013 (restated) 528 6,405 843 (8,838) (1,062) (1,062)
============= ======== ========= ========= ======== ========
Share Other Retained Total
Share capital premium reserves earnings Total equity
GBP 000 GBP 000 GBP 000 GBP 000 GBP 000 GBP 000
At 1 April 2013 (restated) 528 6,405 843 (8,838) (1,062) (1,062)
------------- -------- --------- --------- -------- --------
Employee share-based
payment options - - 124 - 124 124
Issue of share capital 1,412 - - - 1,412 1,412
------------- -------- --------- --------- -------- --------
Transactions with owners 1,412 - 124 - 1,536 1,536
Treasury shares sold - - - 38 38 38
Loss for the year and
total comprehensive
income - - - (1,609) (1,609) (1,466)
------------- -------- --------- --------- -------- --------
At 31 March 2014 1,940 6,405 967 (10,409) (1,097) (1,097)
============= ======== ========= ========= ======== ========
Imaginatik plc
Notes to the Financial Statements for the Year Ended 31 March
2014
1. General Information
The Group, headed by Imaginatik plc, is one of the leading
providers of collaborative innovation software and related
professional services to large and medium-sized enterprises.
The Company is a public company limited by share capital
incorporated and domiciled in the UK.
The address of its registered office is:
22 Melton Street
London
NW1 2BW
The company's ordinary shares are traded on the AIM market of
the London Stock Exchange.
Authorised for issue on 30 June 2014.
The Company has adopted the requirements of International
Financial Reporting Standards (IFRS) and IFRIC interpretations
endorsed by the European Union (EU) and those parts of the
Companies Act 2006 applicable to companies reporting under IFRS.
The financial statements have been prepared under the historical
cost convention and are in accordance with applicable accounting
standards.
These financial statements have been prepared in accordance with
the accounting policies set out below, which have been consistently
applied to all the years presented. These accounting policies
comply with applicable IFRS and IFRIC interpretations issued and
effective at the time of preparing these statements.
The financial information contained in this preliminary
announcement does not constitute the Group's statutory financial
statements for the year ended 31 March 2014 or 2013, but is derived
from these financial statements. The financial statements for the
year ended 31 March 2013 have been delivered to the Registrar of
Companies.
2. Accounting Policies
Going concern
Net funds at 31 March 2014 were GBP94,000 (2013:
GBP136,000).
The Company completed a placing of new ordinary shares with
institutional and other investors in May 2013 raising a total of
GBP1.42 million before expenses. The Company completed a further
placing of new ordinary shares in May 2014, post period end,
raising approximately GBP1.26 million before expenses.
The Directors have prepared detailed Group budgets and forecasts
for the period to March 2016. They have reviewed the Group's
budgets and forecasts for the coming 12 months, which have been
prepared with appropriate regard to the current macroeconomic
environment and the conditions in the principal markets served by
the Group. The Directors have taken into consideration the Group's
net funds, the level of anticipated renewals by reviewing on a
customer by customer basis, forecast new and up sell revenues based
on sales in the pipeline and anticipated costs including the
ability to flex these costs should predicted revenues be lower than
forecast. As a result, at the time of approving the financial
statements, the Directors consider that the Company has sufficient
financial resources to continue in operational existence for the
foreseeable future and, therefore, that it is appropriate to adopt
the going concern basis in preparing these financial statements. As
with all business forecasts, the Directors' statement cannot
guarantee that the going concern basis will remain appropriate
given the inherent uncertainty about future events.
Basis of consolidation
The Group's financial statements for the year ended 31 March
2014 consolidate the financial statements of Imaginatik PLC and its
subsidiary undertaking using the acquisition method. Subsidiaries
are entities that are directly or indirectly controlled by the
group. Inter-company balances are eliminated on consolidation.
The Company has taken advantage of the exemption under S408 of
the Companies Act 2006 and has not presented its own statement of
comprehensive income. Of the consolidated result for the year ended
31 March 2014 a loss of GBP1,630,000 (2013: loss of GBP1,164,000)
is attributable to the Company.
Revenue recognition
Revenue is measured at the fair value of the consideration
received or receivable net of sales related taxes. Income for the
group is derived from two sources: Technology and Consultancy.
These sources are service-based rather than through the sale of
goods. Following the principles of IAS 18 Revenue, the policies for
income recognition in respect of each of the different sources of
income are such that income is recognised by reference to the stage
of completion of the transaction at the end of the reporting
period. In applying the income recognition policies below where
there is a requirement for a contract to be signed, income is
recognised in accordance with the policy when the contract has been
signed or persuasive evidence of an arrangement exists.
a) Consulting:
Income derived from our consulting offering subject to contracts
is recognised in the month in which the consulting takes place.
Income from longer term consulting arrangements shall be recognised
evenly over the term of the contract.
b) Technology:
The provision of our suite of technology products includes
provision of software licences, hosting and maintenance in relation
to the product over the contract term. Income arising from the
provision of these bundled services are recognised evenly over the
term of the contract, once an agreement has been signed or
persuasive evidence of an arrangement exists.
In determining and applying accounting policies, judgement is
often required in respect of items where the choice of specific
policy, accounting estimate or assumption to be followed could
materially affect the reported results or net asset position of the
Group should it later be determined that a different choice would
be more appropriate. The most significant areas where judgements
and estimates have been applied are as follows:
Judgements
The value of the awards under the modified and new share option
scheme was measured, in accordance with IFRS 2, by reference to
their fair value at the date on which they were granted. Judgement
was required in determining the most appropriate valuation
model.
Estimates
Significant assumptions were necessary in arriving at the inputs
into the valuation model for modified and new share option
scheme.
Exceptional items
The Group presents as exceptional items, on the face of the
statement of comprehensive income, those material items of income
and expense which, because of their nature and expected infrequency
of the events giving rise to them, merit separate presentation to
allow shareholders to understand better the elements of financial
performance during the period, so as to facilitate comparison with
prior periods and to assess better trends in financial
performance.
Adjustment
An error was found in the prior year share capital and share
premium reserve. The 2013 financial statements have been restated
to reclassify this difference. The change has no effect on net
assets, income, EPS or cashflows.
3. Segmental Reporting
Management currently identifies the Group's two revenue streams
as its operating segments. These operating segments are monitored
by the Group's chief operating decision maker. For these operating
segments only revenues are reported the Group's chief operating
decision maker as results, other costs and assets and liabilities
cannot be reliably allocated to the operating segments.
2014 2013
GBP'000 GBP'000
Segmental revenue:
Technology 2,463 2,456
Consultancy 436 553
------- -------
2,899 3,009
======= =======
All other information presented to the chief operating decision
maker is the same as is reported in these financial statements.
The Group's revenues from external customers and its non-current
assets are divided into the following geographical areas:
2014 2013
GBP'000 GBP'000
Segmental revenue:
United States of America 2,243 2,628
Rest of the World 656 381
------- -------
2,899 3,009
======= =======
Segmental non-current assets:
United States of America 189 309
Rest of the World 457 313
------- -------
646 622
======= =======
Revenues from external customers have been identified on the
basis of the customer's geographical location. Non-current assets
are allocated based on their physical location.
The Group has one customer (2013: one customer), who accounted
for revenues of GBP343,000 (2013: GBP302,000), which amount to more
than 10% of total Group revenues. These revenues arose in the
Technology segment.
4. Operating profit
Arrived at after charging/(crediting)
2014 2013
GBP 000 GBP 000
Depreciation expense 21 39
Amortisation expense 84 23
Research and development cost 226 183
Foreign exchange (losses)/gains (158) 127
Operating lease expense - property 91 84
======== ========
Auditors' remuneration
2014 2013
GBP 000 GBP 000
Audit of these financial statements 21 19
Audit of the financial statements of subsidiaries
of the company pursuant to legislation 1 1
-------- --------
22 20
======== ========
Other fees to auditors
Taxation compliance services 5 7
All other non-audit services 3 2
-------- --------
8 9
======== ========
Finance income and costs
2014 2013
GBP 000 GBP 000
Finance costs
Other finance costs (24) (7)
======== ========
5. Earnings per share
Basic loss per share (EPS) has been calculated in accordance
with IAS 33 'Earnings per share' at 0.06p (2013: 0.15p). The
calculation of EPS is based on losses of GBP1,609,000 (2013:
GBP1,142,000) and on a weighted average number of ordinary shares
in existence during the year of 2,736,783,781 (2013:
763,032,110).
The share options issued during the current and prior year are
anti-dilutive due to losses, and therefore diluted EPS equals basic
EPS.
6. Share capital and reserves
Allotted, called up and fully paid shares
2014 2013
No. 000 GBP 000 No. 000 GBP 000
Ordinary shares of 0.0625p
(2013 - 0.0625p) each 3,104,695 1,940 846,365 528
New shares allotted
During the year 2,258,329,298 ordinary shares having an aggregate
nominal value of GBP1,411,456 were allotted for an aggregate
consideration of GBP1,411,456. Issue costs relating to the above
shares were GBP143,000 and have been included in profit or loss
as exceptional items.
Share premium account
This reserve records the consideration premium for shares issued
at a value that exceeds their nominal value, less any costs
incurred relating directly to the issue of these shares.
Other reserve account
This account acts as the share option reserve and records the
charges to profit with respect to unexercised share options.
Retained earnings
During the year the Company disposed of 54,053,815 treasury
shares it acquired as settlement in a legal action at a price of
0.07p per ordinary share. The amount was credited directly to
retained earnings.
7. Non adjusting events after the financial period
The Company announced on 25 April 2014 that it had successfully
raised GBP1.26m (before expenses) by way of a conditional placing
of new ordinary shares in the Company ("Placing"). The terms of the
Placing were described in a circular which was dispatched to
shareholders of the Company on 25 April 2014. The shares were
admitted to trading on AIM on 15 May 2014.
8. Report and Accounts
Copies of the Company's full statutory financial statements will
be available from the offices at Carnac Cottage, Cams Hall Estate,
Fareham, PO16 8UU 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 in due course.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR KMGFVKGGGDZM
Abal (LSE:ABAL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Abal (LSE:ABAL)
Historical Stock Chart
From Jul 2023 to Jul 2024
