Interim Results

RNS Number : 0549Z

Imaginatik PLC

08 December 2014

 

8 December 2014

Imaginatik Plc

("Imaginatik" or the "Company")

Interim Results

Imaginatik plc (AIM: IMTK.L), the world's first full service innovation provider offering a range of consultancy and technology products, announces its unaudited results for the half year ended 30 September 2014.

Imaginatik enables organisations to compete in the information-rich, rapidly-changing 21^st century by helping them to build a sustainable innovation discipline.

Key points

·      Recognised revenue of £1.47m (2013: £1.51m)

·      Deferred revenue as at 30 September 2014 of £2.59m (30 September 2013: £2.34m)

·      Loss after tax of £0.70m (2013: loss of £0.81m)

·      8 new customers signed in the period (2013: 6)

·      Increased customer base to 40 as at 30 September 2014 (30 September 2013: 32), result of new customer wins and good customer retention rate

·      58% of customer base now on multi-year contracts (2013: 38%)

·      Roll-out and ongoing refinement of three new consultancy offerings launched in the second half of 2013

·      Placing in May 2014 raising £1.34m before expenses

·      Significant pipeline for the remainder of the year valued at £7.2m (2013: £5.2m; 2012: £3.6m), reflecting a mix towards larger, more complex deals

·      Post period end appointment of Ralph Welborn as CEO to support next growth phase

Matt Cooper, Non-Executive Chairman of Imaginatik, commented, "We are pleased with developments in the first half of the financial year, including a number of new business wins and the further refinement of our new consultancy offerings. We enter the second half with a bigger pipeline of new sales opportunities than ever before and the second half has begun well with several new contract wins. Furthermore, with a new CEO working alongside the existing management team, the Board is confident that we can continue to make further progress strategically and also in converting our sales opportunities into contracted business.

"We believe that our comprehensive offering, which combines consultancy with proprietary technology, is what is required to affect real innovation change within our customers' organisations. This, combined with an evolving and increasingly sophisticated market, leaves us confident in the Company's future prospects."

For further information please contact:  

Imaginatik plc	Tel: [phone]
Matt Cooper, Non-Executive Chairman / Shawn Taylor, CFO
finnCap	Tel: [phone]
Charlotte Stranner/ Victoria Bates
Newgate Threadneedle	Tel: [phone]
Hilary Buchanan / John Coles / Edward Treadwell

About Imaginatik

Imaginatik® 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, 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. 

Introduction

We continue to make steady progress as the business progresses through its transition which was initiated little over two years ago. The Company has evolved from a provider of solely technology to a full service innovation provider comprising a range of consulting offerings coupled with our proprietary technology. At the start of this transition, we recognised that businesses of all sizes were increasingly addressing the big issue of innovation - how to embed innovation within a business culture - and that this discussion was being elevated higher up the corporate agenda. As a result, the Imaginatik team has been hard at work developing and implementing the right strategy to be able to help customers affect real change within their organisations. We are pleased to report that during the six months under review we have achieved some meaningful objectives in line with this repositioning and, following mounting evidence that our strategy is working, we believe we are approaching the end of this transition and are at the start of a period of expansion.

The market in which we operate is still very much in its nascent stage but it is maturing, and we see growing evidence that it is evolving in the way in which we anticipated. We are having conversations with more senior people within our prospective customer base where engagement discussions are increasingly consultancy-led with technology playing a supporting role in the overall proposition. In light of this, we believe the product set we have developed and continue to refine is unique in addressing the market's developing and increasingly sophisticated approach to innovation. Our comprehensive offering, with a dual focus on operational implementation (Innovation Body) and strategy (Innovation Mind), is, we believe, jointly necessary to deliver real innovation change and this is what continues to differentiate us in the market.

This approach has resulted in encouraging early success and we are pleased to have grown our customer base with 8 new customers added in the period, including Ecco, Novartis, and Philips Electronics (2013: 6). Importantly, we continue to grow our footprint within the existing customer base with upsell into several existing customers that have added to the growing base of renewals, which is testament to the quality of service we deliver.

As the market develops, and in order to support the Company as it moves to the next stage of growth, we are pleased to have welcomed a number of senior hires to the team, including a senior consultant in Boston and the introduction of a more senior sales executive in the UK. Both hires represent the continued skilling-up of our sales force and reflect the focus on customer engagement at more senior levels within our customer and prospective customer base. It is gratifying to see that the strategy we have put in place is not only positioning us well to win new business but is also supporting our recruitment drive. Furthermore, we are delighted that Ralph Welborn has joined the team as Chief Executive Officer as announced on 19 November. He brings to the Group a wealth of industry insight and experience, and the whole team is excited to be working with Ralph to drive the Imaginatik proposition forward. As a result, I have reverted back to my role as Non-Executive Chairman and I look forward to my continuing deep involvement in the business, working alongside Ralph to as we grow the business.

In May 2014 we raised £1.34m before expenses from new and existing institutional shareholders. We would like to thank them for their continued support. The additional funds provide us with the resources to continue to build the business.

As we enter the second half of the year, the new business pipeline continues to build. At the period end it was valued at £7.2m (2013: £5.2m; 2012: £3.6m). The sales pipeline contains a mixture of engagements, with a greater proportion now having some form of operational or strategic consulting component at its heart, and this we believe is a consequence of the more comprehensive approach organisations are now taking to innovation. However, given the typical length of contract negotiations with large blue chip organisations, this increased pipeline will take time to flow through into contracted business and then into recognised revenue.

In spite of slower than expected sales results, we remain committed to our strategy and we believe we now have the right tools, personnel and infrastructure in place to drive the Company forward. We are focussed on converting the sales pipeline into contracted sales in the second half of the year which will take the Company closer to a break even position.

Financial Review

Total recorded revenue for the six months to 30 September 2014 was broadly level with the prior year at £1.47m (2013: £1.51m). Revenues recognised from the US in the period accounted for approximately 75% of the total (2013: 85%) with the balance derived from 'Rest of World', primarily the European market where we feel we are gaining good traction. Of the 8 new customers added in the period, 5 are European in origin with the balance from the US.

Gross bookings in the period at £1.0m (2013: £1.66m) were lower than the prior year, largely the result of the timing of sales contracts and also the result of two large multi-year contract renewals falling into the prior year. In the period under review 40% of bookings were from up-selling our software and consultancy services into existing customers, 43% from selling into new customers, and 17% from renewals business (2013: 31%: 30%: 39% respectively).

With relatively few contracts up for renewal in the period under review, renewal bookings amounted to £0.15m (2013: £0.7m). Of the 6 contracts that came up for renewal, 4 were successfully secured on extensions (2013: 7 secured out of 9 possible renewals). We now have approximately 58% of our entire customer base on multi-year contracts (2013: 38%). Additionally, we have a significant number of multi-year contracts up for renewal in the next full financial year and the Board is confident that these prospective renewals will be successfully closed on similar arrangements.

We are pleased with the addition of 8 new customers in the 6 months to 30 September 2014 (2013: 6), this takes the annualised value of our renewals to £2.48m (2013: £2.13m). We look forward to growing this further as we progress through the second half of the year.

Good customer retention rates over recent periods as well as the ongoing addition of new customers has increased the customer base as at 30 September 2014 to 40 (30 September 2013: 32). We expect this number to increase in the second half of the year.

Deferred revenue as a result of the growing customer base increased 11% to £2.59m at 30 September 2014 (30 September 2013: £2.34m).

Capitalised internal development costs amounted to £0.08m (2013: £0.07m) as we continue to invest in our platform as well as new software offerings, including Discovery Labs (formerly Discovery Central), a new Portal and various analytic tools.

Once again we have been successful in securing an R&D tax credit from HMRC amounting to £0.12m (2013: £0.11m), reflecting the pioneering nature of certain elements of our R&D efforts in building out our software platform.   

Administrative expenses at £2.16m were flat relative to the prior period (2013: £2.17m). There has been a modest increase in staff costs as we have brought on more senior personnel, but this increase has been compensated by cost reductions in other areas.

Losses after tax on ordinary activities for the period were similar to the prior year at £0.70m (2013: £0.81m), with losses funded through a placing in May 2014 which generated net proceeds of £1.21m. The 2013 losses include share issue costsincurred in connection with a placing in May 2013. 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.

Cash outflows from operating activities amount to £1.08m (2013: £1.06 million).

Operational Review

Our strategy continues to focus on the "Innovation Body and Mind," providing both the strategic consultancy but also the structure to implement innovation programmes at an operational level - including the technology, process and training of people.

Customers

We are pleased to see that our differentiated offering is resonating in the wider marketplace and driving new business to the Group with the number of new customers growing once again. As mentioned above, during the period we signed 8 new customers, including 4 new annual contracts, 2 discrete consulting engagements and 2 pilot projects. The majority of new contracts signed in the period contained elements of both consultancy and technology, with 75% of new and upsell contracts closed in the period containing some form of consulting component (2013: 63%; 2012: 56%). This further validates our strategy to provide a comprehensive offering with a dual focus on operational implementation (Innovation Body) and strategy (Innovation Mind). We will continue to stress the importance of consulting being a key part of building a long term innovation competence.

Senior appointments and Board changes

To support the growing sales pipeline and capitalise on the escalating demand in the market, we have made a number of senior appointments in the period and post period end. We are pleased to have further bolstered our US client services team with the addition of a senior consultant in Boston as well as added a senior sales executive to the UK team to support further growth in this region.

In November, we announced that Ralph Welborn had joined the Group as Chief Executive Officer, effective from 1 December. Ralph Welborn has significant global business advisory and technology implementation experience, focussing on identifying where value is being created and destroyed and how to capture new sources of value. Ralph founded Jericho Group, an independent advisory firm focussed on business model innovation and market access, and was most recently a partner at Tapestry Networks, a stakeholder advisory firm that works with senior business and regulatory executives to govern and lead in times of systemic change.

Consultancy offerings

As we highlighted at the time of the full year results in July 2014, in late 2013 we launched exploratory versions of three new service offerings which integrated both software and consulting, named Innovation Governance, Discovery, and People Centric. We have spent a significant amount of effort in the roll-out phase listening to customer feedback, allowing us to refine our approach in tune with market needs.

As a result of these efforts, we've structured Imaginatik's offerings into two broad categories. The first offerings category is Sustainable Innovation Competence and leverages the complete set of Imaginatik services and products toward the multi-year journey of helping customers building a lasting core competence for innovation. In pursuit of this larger prize with customers, we've learned that the Innovation Governance service offering is particularly invaluable, as it ensures that a client's burgeoning innovation programme develops healthy connections to overall corporate strategy, while also building scaled enterprise processes and metrics for innovation.

The second category of Imaginatik's offerings is Innovation Pathways - which are discrete service lines that focus on building our customer's capabilities within a particular type of core innovation process. In addition to our longstanding offering around Idea Challenges, new offerings around Discovery Labs and Innovation Communities (formerly "Discovery" and "People Centric") allow us to offer introductory programmes and engagements for a wider variety of new clients and corresponding innovation. We've learned that success along specific Innovation Pathways is a strong indicator of a client's likelihood to subsequently sign up for Imaginatik's complete Sustainable Innovation Competence programme of change.

We have been pleased with the response so far and all products and have seen uptake for all three new offerings. The Discovery Labs offering in particular, which is our business strategy approach to identifying disruptive innovation and white space, has seen strong demand during the period. Our method blends human dynamics with proven virtual tools, and links to a full suite of follow-on innovation management tools, providing the customer with expert guidance through a journey from discovery to actualisation. With several contracts closed and with many more opportunities in the sales pipeline set for closure in the remainder of this financial year, we believe this will be a decisive tool to propel us further ahead in the market and help differentiate Imaginatik from pure technology vendors. We will continue to refine all of Imaginatik's offerings in line with continued market feedback.

Customer case studies

Several case studies are illustrative of the expanded scope of services Imaginatik is now performing with our customers:

·      With Dutch airline KLM, Imaginatik ran a highly public Open Innovation idea challenge called "Green Aruba 2020" (https://klmtakescare.com/en/content/join-or-share-the-green-aruba-challenge-). The purpose of the event was to further Aruba's goal of becoming carbon-neutral by 2020, while promoting KLM's commitment to sustainability.

·      With a major North American restaurant chain, Imaginatik conducted a series of innovation strategy workshops with the executive team. The goal was to assess the company's innovation maturity level, benchmark its innovation readiness against other enterprises, and chart an action plan for deepening its ability to innovate across the company.

·      With a major North American consumer products manufacturer, Imaginatik has launched an Innovation Community, providing a cross-section of employees with an online forum for their efforts to build a new line of business. The larger objective is to unite the entire community around actionable plans to help the company move beyond a dependence on its traditional core businesses.

Marketing activities

We have been active in our marketing campaign during the period with the aim of growing the awareness of our brand and taking our new integrated product offerings to market. New marketing initiatives have been undertaken to develop growth avenues in specific industry verticals and functions. We believe that increasing experimentation in targeted segments is likely to expand the total addressable market, as well as Imaginatik's share within these market segments.

As before, the majority of marketing activity and brand awareness consists of outbound appointment-setting and conference attendance to ensure that Imaginatik's sales team and consultants are talking with senior executives whenever possible. This continues to be augmented with a growing stream of practitioner webinars, Innovation Leader Forums (ILF), and smaller-group Innovation Roundtable meetings. As this market is maturing, we are starting to see a greater flow of inbound leads calling Imaginatik with active interest to invest in our services.

Technology 

Since our last market update we have had a major release of our enterprise software platform, Innovation Central. The new release provides the platform with significant new capabilities to drive greater still participation, a very important element to ensuring success. An enhanced look and feel to the product has allowed us to better address growing customer branding expectations, without the need for time consuming customisations. We have also continued to further develop our Discovery Labs tool, aligning it with the existing platform with a short path now created to allow this to be a fully licensable platform in 2015. 

As announced at the time of our final results, we have spent time creating a suite of algorithm-based analytics tools to enable sophisticated filtering and executive decision-making on very large data volumes and social collaboration activity. This will continue into 2015 and beyond.

Outlook

We are pleased with developments achieved in the first half of the financial year, including a number of new business wins and the further refinement of our new consultancy offerings. We enter the second half with a bigger pipeline of new sales opportunities than ever before and the period has begun well with several new contract wins. Furthermore, with a new CEO working alongside the existing management team, the Board is confident that we can continue to make further progress strategically and also in converting our sales opportunities into contracted business.

We believe that our comprehensive offering, which combines consultancy with proprietary technology, is what is required to affect real innovation change within our customers' organisations. This, combined with an evolving and increasingly sophisticated market, leaves us confident in the Company's future prospects.

Matt Cooper

Non- Executive Chairman

8 December 2014  

Imaginatik Plc

Condensed Unaudited Consolidated Interim Statement of Comprehensive Income   

For the six months ended 30 September 2014

		Unaudited 6 months to 30 Sept 2014	Restated Unaudited 6 months to 30 Sept 2013	Audited year to 31 March 2014
	Note	£'000	£'000	£'000
Revenue		1,472	1,512	2,899
Cost of sales		(133)	(131)	(261)
Gross profit		1,339	1,381	2,638
Administrative expenses before share issue costs		(2,157)	(2,168)	(4,185)
Operating loss before share issue costs, before financing and taxation		(818)	(787)	(1,547)
Share issue costs		-	(125)	(143)
Operating loss after share issue costs, before financing and taxation		(818)	(912)	(1,690)
Operating loss before share option costs		(770)	(861)	(1,566)
Share option costs		(48)	(51)	(124)
Finance income/(costs)		-	-	(24)
Loss on ordinary activities before taxation		(818)	(912)	(1,714)
Taxation		119	105	105
Loss on ordinary activities for the period		(699)	(807)	(1,609)
Basic and diluted loss per share (p)	4	(1.24)	(2.65)	(4.55)

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.

Imaginatik Plc

Condensed Unaudited Consolidated Interim Statement of Financial Position

As at 30 September 2014

		Unaudited 30 Sept 2014	Restated Unaudited 30 Sept 2013	Audited 31 March 2014
	Note	£'000	£'000	£'000
ASSETS
Non-current assets
Property, plant and equipment		43	24	26
Intangible assets		325	284	291
Trade & other receivables		221	381	329
		589	689	646
Current assets
Trade and other receivables		1,697	1,499	1,614
Cash and cash equivalents		123	215	94
		1,820	1,714	1,708
Total assets		2,409	2,403	2,354
EQUITY AND LIABILITIES
Equity
Issued capital	6	3,087	1,824	1,940
Share premium	6	6,472	6,405	6,405
Share option reserve	6	1,015	894	967
Retained earnings	6	(11,108)	(9,607)	(10,409)
Total equity attributable to equity holders of the parent		(534)	(484)	(1,097)
Liabilities
Non-current liabilities
Other payables		531	852	1,079
Total non-current liabilities		531	852	1,079
Current liabilities
Trade and other payables		2,412	2,035	2,372
		2,412	2,035	2,372
Total liabilities		2,943	2,887	3,451
Total equity and liabilities		2,409	2,403	2,354

Imaginatik Plc

Condensed Unaudited Consolidated Interim Statement of Cash Flows          

For the six months ended 30 September 2014

	Note	Unaudited 6 months to 30 Sept 2014	Restated Unaudited 6 months to 30 Sept 2013	Audited Year to 31 March 2014
		£'000	£'000	£'000
Cash outflows from operating activities	7	(1,077)	(1,184)	(1,353)
Investing activities
Acquisition of property, plant and equipment		(27)	(5)	(18)
Acquisition of intangible assets		(81)	(66)	(121)
Net cash used in investing activities		(108)	(71)	(139)
Net cash flow before financing activities		(1,185)	(1,255)	(1,492)
Financing activities
Net proceeds from the issue of share capital		1,214	1,296	1,412
Net proceeds from sales of Treasury shares		-	38	38
Net cash generated from financing activities		1,214	1,334	1,450
Net (decrease)/increase in cash and cash equivalents		29	79	(42)
Cash and cash equivalents at start of period		94	136	136
Cash and cash equivalents at end of period		123	215	94

Imaginatik Plc

Condensed Unaudited Consolidated Interim Statement of Changes in Equity

For the six months ended 30 September 2014

	Restated Share capital	Restated Share premium	Share option reserve	Restated Retained earnings	Total
	£'000	£'000	£'000	£'000	£'000
Balance at 1 April 2013	528	6,405	843	(8,838)	(1,062)
Loss for the period	-	-	-	(807)	(807)
Share option costs	-	-	51	-	51
Sale of Treasury shares	-	-	-	38	38
Shares issued	1,296	-	-	-	1,296
	1,296	-	51	(769)	578
Balance at 30 September 2013	1,824	6,405	894	(9,607)	(484)
Loss for the period	-	-	-	(802)	(802)
Share option costs	-	-	73	-	73
Shares issued	116	-	-	-	116
	116	-	73	(802)	(613)
Balance at 31 March 2014	1,940	6,405	967	(10,409)	(1,097)
Loss for the period	-	-	-	(699)	(699)
Share option costs	-	-	48	-	48
Shares issued	1,147	67	-	-	1,214
	1,147	67	48	(699)	563
Balance at 30 September 2014	3,087	6,472	1,015	(11,108)	(534)

Imaginatik Plc

Notes to the Condensed Unaudited Consolidated Interim Financial Statements

For the six months ended 30 September 2014

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 2014 comprise the Company and its subsidiary (together referred to as the "Group").

The condensed consolidated interim financial statements were authorised for issuance on 8 December 2014.

The interim financial statements are not statutory accounts for the purposes of S435 of the Companies Act 2006. The comparative figures for the year ended 31 March 2014 are not the Company's statutory accounts for that financial year.  The financial information for the year ended 31 March 2014 is based on the statutory accounts for the financial year ended 31 March 2014. 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 2014.  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.         Prior period adjustment

An error was found in the prior period share capital and share premium reserve. The September 2013 comparative figures have been restated to reclassify this difference.

4.         Loss per share

Basic loss per share

During the year the company completed a share consolidation converting its 4,908,980,456 ordinary shares of £0.000625 into 61,745,004 ordinary shares of £0.05. To enable a like-for-like comparison the average shares used for the 30 September 2013 and 31 March 2014 comparatives have been restated as though the share consolidation had been completed on 1 April 2013.

The calculation of basic loss per share for the period ended 30 September 2014 was based on the loss attributable to ordinary shareholders of £699,000 (period ended 30 September 2013: £807,000; year ended 31 March 2014: £1,609,000) and a weighted average number of ordinary shares outstanding during the period ended 30 September 2014 of 56,288,463 (restated period ended 30 September 2013: 30,446,199); restated year ended 31 March 2014: 35,354,105).

Diluted loss per share

The options in place during the periods ended 30 September 2014 and 30 September 2013 and during the year ended 31 March 2014 are considered to have an anti-dilutive effect.  Therefore, basic and diluted loss per share is the same for each of the three periods.

5.         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.

	Unaudited 6 months to 30 Sept 2014	Unaudited 6 months to 30 Sept 2013	Audited Year to 31 March 2014
	£'000	£'000	£'000
Segmental revenue
Technology	1,172	1,252	2,463
Consultancy	300	260	436
	1,472	1,512	2,899

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:

	Unaudited 6 months to 30 Sept 2014	Unaudited 6 months to 30 Sept 2013	Audited Year to 31 March 2014
	£'000	£'000	£'000
Segmental revenue
United States of America	1,100	1,284	2,243
Rest of the world	372	228	656
	1,472	1,512	2,899
Segmental non-current assets
United States of America	59	265	189
Rest of the world	530	424	457
	589	689	646

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 £171,000 (2013: £164,000), which amounted to more than 10% of Group revenues. These revenues arose in the Technology segment.

6.         Share Capital and Reserves

	Unaudited 6 months to 30 Sept 2014	Restated Unaudited 6 months to 30 Sept 2013	Audited Year to 31 March  2014
	£'000	£'000	£'000
Share Capital
At the beginning of the period	1,940	528	528
Shares issued	1,147	1,296	1,412
At the end of the period	3,087	1,824	1,940
Share premium
At the beginning of the period	6,405	6,405	6,405
Shares issued in the period, net of expenses	67	-	-
At the end of the period	6,472	6,405	6,405
Share option reserve
At the beginning of the period	967	843	843
Share-based payments	48	51	124
At the end of the period	1,015	894	967
Retained earnings
At the beginning of the period	(10,409)	(8,838)	(8,838)
Sale of Treasury shares	-	38	38
Loss for the period	(699)	(807)	(1,609)
At the end of the period	(11,108)	(9,607)	(10,409)

7.         Cash flows from operating activities

	Unaudited 6 months to 30 Sept 2014	Restated Unaudited 6 months  to 30 Sept 2013	Audited Year to 31 March 2014
	£'000	£'000	£'000
Operating loss	(818)	(912)	(1,690)
Depreciation of tangible fixed assets	10	10	21
Amortisation of intangible fixed assets	47	36	84
Share-based payment expense	48	51	124
Operating cash flows before movements in working capital	(713)	(815)	(1,461)
(Increase) / decrease in trade and other receivables	24	(478)	(541)
Increase / (decrease) in payables	(507)	4	568
Net movement in working capital	(483)	(474)	27
Cash used by operations	(1,196)	(1,289)	(1,434)
Corporation tax received	119	105	105
Net interest expense	-	-	(24)
Net cash from operating activities	(1,077)	(1,184)	(1,353)

8. 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.

 

END

 

 

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