Contract Wins and Trading Update

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 £3.4m versus £2.8m in FY13. Recognised revenue for the year is expected to be broadly flat compared to the prior year at approximately £2.9m (FY13: £3.0m), with an increased loss of approximately £1.45m (FY13: £1.15m) due to the increased investment in sales and consultancy personnel. Deferred revenue is expected to have increased to approximately £2.9m (FY13: £2.4m).

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 £0.05m (FY13: £0.136m). In order to fund the current working capital requirements of the Company, Matt Cooper, Executive Chairman, has provided a loan for the amount of £0.07m and has agreed to lend up to a further £0.1 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: [phone]
Matt Cooper, Executive Chairman / Shawn Taylor, CFO
finnCap	Tel: [phone]
Charlotte Stranner/ Victoria Bates
Newgate Threadneedle	Tel: [phone]
Caroline Forde / Hilary Millar

About Imaginatik

Imaginatik® 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.

 

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