Trading update

RNS Number : 0909F

Imaginatik PLC

09 November 2015

 

9 November 2015

Imaginatik Plc

("Imaginatik" or "the Company")

Trading Update

Imaginatik plc (AIM: IMTK.L), the world's first full service innovation provider offering a range of consultancy and technology products, provides a trading update covering the first half of the Company's financial year to 30 September 2015.

The Company expects to report an increase in recognised revenues of approximately 33% to £1.96m (2014: £1.47m). This increase combined with the containment of costs will reduce the half year losses to approximately £0.41m (2014: £0.70m). Particularly encouraging is the increase of approximately 91% in overall bookings in the period to £1.97m (2014: £1.03m at constant currency). This has been driven primarily by the successful completion of several large multi-year renewals with existing clients. We are pleased to report that we renewed 14 out of the 17 contracts available for renewal and secured 87% of the available renewal revenues in the period.

In addition, we closed contracts in the period with several new clients including Eli Lilly, Landauer and Alaska Air.

We are also pleased to report continued progress in the Consulting division, including successfully growing our footprint with several existing customers and expanding the range of our consultancy engagements to include portfolio valuation work, the creation of long term strategy for creating deep innovation capabilities as well as our more traditional consulting support work with our Innovation Central technology platform.

As we enter the second half of the year, we are currently in contract discussions with a number of other companies and expect to complete several new contracts in the next few weeks. We expect the momentum in the Consulting division to continue, with several new consulting opportunities being developed. There is an equally large number of clients available to renew with us in the second half of the year and we are working diligently to achieve a similar or better result than that achieved in the first half year.

As stated in previous announcements, as a small company with relatively few high value contracts, the management of cash resources can at times be a challenge. During the period the Company's Chairman, Matt Cooper, advanced the Company $110,000 as a short term loan, of which $50,000 has now been repaid. The balance of this loan together with the balance of the $250,000 loan advanced in January 2015 is scheduled to be repaid over the coming months. The Company will continue to carefully manage its cash reserves and will be considering its various funding options to ensure that the business maintains sufficient levels of investment during this growth phase.

Matt Cooper, Non-Executive Chairman, commented: "The Board is pleased with the progress Imaginatik is making. The quality of the client base is outstanding for a company of our size and we are seeing pleasing growth in new innovation consulting opportunities."

The Company expects to report interim results for the six month period to 30 September 2015 in early December.

For further information please contact:  

Imaginatik plc	Tel: [phone]
Matt Cooper Non-Executive Chairman Ralph Welborn, CEO Shawn Taylor, CFO
finnCap Ltd	Tel: [phone]
Jonny Franklin-Adams/Giles Rolls
Daniel Stewart & Company	Tel: [phone]
Martin Lampshire/David Coffman
Alma PR	Tel: [phone]
Hilary Buchanan

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, Exxon Mobil, Altria, Shell, Mayo Clinic, Goodyear, the Yorkshire Building Society, Pitney Bowes 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.

 

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