TIDMIMO
RNS Number : 1563P
IMImobile PLC
15 November 2016
15 November 2016
IMIMOBILE PLC
("IMImobile", "the Group" or "the Company")
Unaudited Interim results for the
Six months ended 30 September 2016
"Strong six months with organic growth in all business
units."
IMImobile PLC, a cloud communications software and solutions
provider, today announces its consolidated interim results for the
six months ended 30 September 2016.
The Company is pleased to report strong headline growth with
continued organic growth across all divisions, driven by the
growing demand for digitisation of consumer interactions.
Key financial highlights
Six months ended 30 September 2016 2015 Growth/
GBPm GBPm decline
------------------------------- ------- ------- ---------
Revenue 36.0 27.8 +29%
------------------------------- ------- ------- ---------
Gross profit 20.2 16.6 +22%
Gross margin 56.1% 59.5%
------------------------------- ------- ------- ---------
Gross profit contribution for
Europe and Americas 10.6 9.9 +7%
Gross profit contribution for
Middle East and Africa 6.7 4.5 +51%
Gross profit contribution for
India and SE Asia 2.9 2.2 +31%
------------------------------- ------- ------- ---------
EBITDA([1]) 5.3 4.5 +17%
EBITDA margin 14.6% 16.2%
------------------------------- ------- ------- ---------
Profit after tax 1.0 0.9 +15%
------------------------------- ------- ------- ---------
Adjusted profit after tax[2] 3.3 2.7 +22%
------------------------------- ------- ------- ---------
Diluted EPS 2.1p 3.2p -34%
------------------------------- ------- ------- ---------
Diluted adjusted EPS[3] 4.8p 4.1p +18%
------------------------------- ------- ------- ---------
Cash at period end 17.9 13.5 +33%
------------------------------- ------- ------- ---------
-- Revenue up 29% to GBP36.0m (2015: GBP27.8m) (16% organic([4]) )
-- Gross profit up 22% to GBP20.2m (2015: GBP16.6m) (14% organic)
-- EBITDA up 17% to GBP5.3m (2015: GBP4.5m)
-- Adjusted profit after tax up 22% to GBP3.3m (2015: GBP2.7m)
-- Profit after tax on a statutory basis of GBP1.0m (2015: profit of GBP0.9m)
-- Diluted adjusted EPS growth of 18% to 4.8p (2015: 4.1p)
-- Cash generated from operating activities of GBP6.4m
representing operating cash conversion([5]) of 122% (2015: 95%)
-- Cash and cash equivalents at 30 September 2016 of GBP17.9m (31 March 2016: GBP15.0m)
Operational highlights
-- Continued organic growth: 14% organic gross profit growth
across the group, 7% in Europe and America, 31% in India and SEA,
21% in MEA (7%, 20% and 18% on a constant currency basis)
-- Increased proportion of recurring revenues: Monthly recurring
and repeating revenue growth year on year of 25% representing 94%
of gross profit (2015: 92%)
-- Strategic client win: Significant new relationship
established with a major mobile operator client in the US
-- New product releases: Launch of new version of contact center
product (IMIchat) with significant traction from end user customers
and channel partners
-- Acquisitions integrating successfully and delivering
synergistic growth: Textlocal international expansion progressing
well with 5,000+ paying customers in India and recent partnership
in Myanmar; Archer integration and cross selling progressing with
first major sale of IMIconnect in South Africa
Jay Patel, Chief Executive Officer of IMImobile PLC,
commented:
"The Group has continued to perform well, both financially and
operationally, and made strategic progress in key new geographies.
We have grown revenues organically by 16% and increased the
contribution from recurring and repeating revenues in the period to
over 94%. This growth has been driven by the inexorable trend
toward digital and mobile communications which has consequently led
to an increased demand for our products.
We continue to invest in technology development and are pleased
to have successfully launched new cloud communication capabilities
for our clients including IP messaging and a digital contact centre
application.
Underlying performance remains strong and the outlook for the
financial year remains broadly in-line with expectations. Local
currency performance in all markets is in line with expectations,
and whilst the currencies in some of the countries we operate in
remain volatile; we are highly confident of the Group's future
prospects due to our strong cash generation, continued investment
in the product portfolio and favourable technology and customer
trends."
An analyst meeting will be held at 9.30am today at the offices
of Redleaf Communications, 1st Floor, 4 London Wall Buildings,
Blomfield Street, EC2M 5NT. To attend please contact Redleaf
Communications.
For further information please contact:
IMImobile PLC c/o Redleaf Communications
Jay Patel, Chief Executive Officer Tel: +44 (0)20 7382 4769
Michael Jefferies, Chief Financial Officer
Redleaf Communications - PR Adviser Tel: +44 (0)20 7382 4769
Charlie Geller imimobile@redleafpr.com
Susie Hudson
Investec Bank - Nominated Adviser and Broker Tel: +44 (0)207 597 4000
Dominic Emery
Henry Reast
Whitman Howard - Broker Tel: +44 (0) 207 659 1234
Ranald McGregor-Smith
About IMImobile PLC
IMImobile is a cloud communications software and solutions
provider that enables companies to use mobile and digital
technologies to communicate and engage with their customers.
Organisations that trust us to deliver smarter digital customer
engagement solutions include Vodafone, O2, Telefonica, Aircel,
Airtel, EE, BSNL, AT&T, MTN, France Telecom, Centrica,
Universal Music, Tata, the AA, the BBC and major financial
institutions.
IMImobile is headquartered in London with offices in Hyderabad,
Atlanta, Dubai and Johannesburg and has over 800 employees
worldwide. IMImobile is quoted on the London Stock Exchange's AIM
market with the TIDM code IMO.
Cautionary statement
This announcement contains forward-looking statements that are
based on current expectations or beliefs, as well as assumptions
about future events. These forward-looking statements can be
identified by the fact that they do not relate only to historical
or current facts. Forward-looking statements often use words such
as anticipate, target, expect, estimate, intend, plan, goal,
believe, will, may, should, would, could, is confident, or other
words of similar meaning. Undue reliance should not be placed on
any such statements because they speak only as at the date of this
document and, by their very nature, they are subject to known and
unknown risks and uncertainties and can be affected by other
factors that could cause actual results, and IMImobile's plans and
objectives, to differ materially from those expressed or implied in
the forward-looking statements.
There are a number of factors which could cause actual results
to differ materially from those expressed or implied in
forward-looking statements. Among the factors that could cause
actual results to differ materially from those described in the
forward-looking statements are; increased competition, the loss of
or damage to one or more key customer relationships, the outcome of
business or industry restructuring, changes in economic conditions,
currency fluctuations, changes in laws, regulations or regulatory
policies, developments in legal or public policy doctrines,
technological developments, the failure to retain key management,
or the key timing and success of future acquisition opportunities
or major investment projects.
IMImobile undertakes no obligation to revise or update any
forward-looking statement contained within this announcement,
regardless of whether those statements are affected as a result of
new information, future events or otherwise, save as required by
law and regulations.
Chief Executive's Report
The Group has enjoyed another six months of strong performance
and year on year growth. We have grown organically in all business
units and are particularly pleased with the sustained growth in
India and South East Asia ("SEA") after a difficult few years. We
have had a very good period for cash generation and have fully
funded our two acquisitions since listing from our operating cash
flow as well as investing in new product development and geographic
expansion.
As previously outlined, although the technology trends impacting
the business are global, the market opportunities and business
models reflect local environments and, as a result, the commercial
activities of the business are managed and best reviewed on a
regional basis.
Regional Review
Europe and Americas
Europe and Americas contributed 53% of Group gross profit in the
six months to 30 September 2016 representing year on year gross
profit growth in the region of 7%.
Europe and Americas has delivered solid growth over the last six
months driven by good progress in our cloud communication products
(IMIconnect, IMIchat, IMIcampaign and Textlocal) with new client
wins in the retail, gambling and media sectors. This progress has
mitigated the structural decline in our activities that help mobile
operators sell content delivered by our IMIdigital product.
We have consolidated our position with our largest clients in
the region through delivering more of their digital customer
interactions and have introduced push notifications with O2 and
Facebook messaging with our largest banking client. We also
initiated a more active strategy of engaging channel partners. As a
result we have signed our first channel partnership agreements and
sold licenses to our IMIchat application through these partners in
the period. We expect further progress in the second half of the
year.
In the US we continue to make progress and established a
relationship with another major national mobile operator for whom
we have started to provide multi-channel marketing campaign
capabilities. On an operating basis, we expect the US region now to
be cash flow break even and we remain confident that the region
will contribute materially to the group in the coming years.
Middle East and Africa ("MEA")
MEA, including Archer Digital, was responsible for 33% of Group
gross profit. Organic([6]) gross profit growth in the region of 21%
was supplemented by the inclusion in the period of Archer Digital,
acquired in September 2015. Overall gross profit growth in the
region was 51% compared with the same period in the prior year.
MEA has delivered another very good set of results. Our operator
business which consists of long-term relationships with the largest
operators on the continent (MTN, France Telecom, Airtel, Vodafone
and Tigo), continues to benefit from subscribers taking additional
content services and the roll-out of deployments under
multi-territory agreements.
A significant portion of our African business comes from
Africa's largest economy, Nigeria (c6% of Group gross profit). We
work with all the leading operator groups in the country and our
local revenues have increased by almost 40% in the last year.
However as has been widely reported there has been a number of
economic and exchange control and liquidity issues in Nigeria
created by the fall in global oil prices. The Central Bank of
Nigeria unpegged the currency from the US dollar which resulted in
the devaluation of the currency by 30% against the dollar in June
with a further devaluation of 11% by September. In addition to the
devaluation there have also been challenges in exchanging Naira to
other currencies.
As a result of this volatility the group's performance in the
first half was adversely impacted by the translation of both
profits and cash balances in Naira. We expect the liquidity squeeze
and restrictions in foreign exchange availability in Nigeria to
continue in the second half although it is unclear at this stage
precisely what impact this will have on the Group.
Notwithstanding these currency fluctuations we remain positive
about our operations and the economic prospects in the country in
the medium and long term. Consequently we will utilise some of our
local currency earnings to accelerate our plans to enter the
Enterprise and SMB markets and are actively managing our currency
exposure.
Our acquisition in the region made last September, Archer
Digital, which derives the majority of its business from South
Africa, is trading well. The company has good revenue growth albeit
from lower margin product lines and a healthy pipeline of
opportunities for the second half. Pleasingly we have sold
IMIconnect into one of Archer's largest banking clients and the
Archer team has supported various rich media and video initiatives
across the Group, providing early encouraging signs of our ability
to deliver synergies through this acquisition.
India and South East Asia
The India and SEA region, which accounts for 14% of the Group
gross profit, grew by 31% in the six months to 30 September 2016
compared with the same period in the prior year.
The strong performance in the region was driven by growth
initiatives that had started in previous periods notably creating
solutions and a team to target the Enterprise, Brands and Agencies
sectors in India and the operator segment in Myanmar and Sri Lanka.
We also deepened our relationships with two of the major operators
in India that consolidated suppliers for value added services.
Textlocal India has continued to grow with over 5,000 paying
customers and we have recently launched the product in Myanmar in
partnership with an operator group.
Market, Technology and Products
The markets we operate in are characterised by rapid change and
driven by fundamental advances in network and hardware
technologies, as well as the strategies of the infrastructure
vendors and the global internet companies. Over the last six
months, we saw the launch and additional penetration of 4G
networks, both Facebook and Apple launching additional messaging
capabilities and cloud computing costs falling dramatically.
Our strategy of continuously enhancing our capabilities is
proving successful within this market environment. In the first
half of our financial year, we introduced push notifications,
Facebook messaging, and in-app messaging into our products and
integrated our solutions with Salesforce and Skype for
Business.
We have been encouraged by the response of early clients to the
latest version of our cloud communication software platform,
IMIconnect, and our product, IMIchat which was recently recognised
as "The best Contact Center Software Application" in the TMT
Technology Awards 2016. We believe the relationship between the
customer and service providers (our clients) will change
dramatically as customers demand real time contextual
communications. Both these products are designed to help our
clients improve customer experience.
We also continue to invest and build capabilities in areas such
as natural language processing and big data analytics to ensure our
clients have an innovative long term partner.
Growth Initiatives
We continue to deliver on our objective of being the trusted
technology vendor of customer communication software for our
clients. Our strategy has been to invest in technologies and
intellectual property that leverages new emerging communication
channels and we have continued to deliver new capabilities into our
clients and added significant blue chip clients during the period
which will drive future growth.
Our plans to broaden distribution of our intellectual properties
through partners have begun and though additional investment is
required in training and technology integrations we remain
confident that this will accelerate growth.
Geographically we have made good progress in the US and South
Asia and we will maintain our focus on geographic expansion
activities in these regions.
We continue to review acquisition opportunities that will
accelerate our sales into major blue chip clients and have
maintained a strong unleveraged balance sheet to pursue these
opportunities. We remain confident of the successful completion of
earnings enhancing acquisitions over the coming periods.
The industry has seen further notable activity in the period,
including the IPO of Twilio in the US and various M&A
activities in the Application-to-Person ("A2P") messaging sector
and we expect further consolidation in a fragmented market.
The Board remains focused on delivering shareholder value and
will continue to review the use of cash to ensure there is an
appropriate balance between retaining flexibility to grow and
invest in the business and enhancing shareholder returns through
returning capital.
Outlook
Underlying performance remains strong and the outlook for the
financial year remains broadly in-line with expectations. Local
currency performance in all markets is in line with expectations,
and whilst the currencies in some of the countries we operate in
remain volatile; we are highly confident of the Group's future
prospects due to our strong cash generation, continued investment
in the product portfolio and favourable technology and customer
trends.
Jay Patel
CEO
IMIMOBILE PLC CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Unaudited Consolidated Income Statement For the
six months ended 30 September 2016
Six months Six months
ended ended
30 September 30 September
Notes 2016 2015
GBP000 GBP000
Revenue 5 36,024 27,838
Cost of sales (15,797) (11,279)
Gross profit 5 20,227 16,559
Operating costs:
Other operating costs (14,963) (12,042)
Depreciation and amortisation (1,480) (1,129)
Share based payment charge (1,748) (1,826)
Exceptional items (356) (247)
Operating profit 1,680 1,315
Investment income 3 4
Profit before tax 1,683 1,319
Tax (676) (441)
Profit for the period 1,007 878
Profit for the period attributable
to:
Equity holders of the company 1,443 2,128
Non-controlling interest (436) (1,250)
Profit for the period 1,007 878
EBITDA[7] 5,264 4,517
Basic earnings per share 6 2.9p 4.4p
Adjusted basic earnings per share 6 6.6p 5.6p
Diluted earnings per share 6 2.1p 3.2p
Adjusted diluted earnings per
share 6 4.8p 4.1p
The accompanying notes are an integral part of the consolidated
interim Financial Statements and are all attributable to continuing
operations.
IMIMOBILE PLC CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Unaudited Consolidated Statement of Comprehensive
Income
For the six months ended 30 September 2016
Six months Six months
ended ended
30 September 30 September
2016 2015
GBP000 GBP000
Profit for the period 1,007 878
Items that may be reclassified
subsequently to profit or loss:
Exchange differences on translation
of foreign operations
Equity holders of the parent 283 (333)
Non-controlling interest 67 (113)
Other comprehensive income / (expense)
for the period 350 (446)
Total comprehensive income for
the period 1,357 432
Total comprehensive income / (expense)
for the period attributable to:
Equity holders of the parent 1,726 1,795
Non-controlling interest (369) (1,363)
Other comprehensive income for
the period 1,357 432
The accompanying notes are an integral part of the consolidated
interim Financial Statements.
IMIMOBILE PLC CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Unaudited Consolidated Statement of Changes in Equity
For the six months ended 30 September 2016
Total
equity
Share Capital attributable Non-controlling
based restructuring Retained to Interest
Share Share Translation payment reserve Earnings/ shareholders Total
capital premium reserve reserve (Deficit) of parent Equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 31
March 2015 4,805 50,896 3,244 5,869 (29,040) (6,345) 29,429 9,510 38,939
Profit /
(loss)
for the
period - - - - - 2,128 2,128 (1,250) 878
Foreign
exchange
differences - - (333) - - - (333) (113) (446)
Share based
payment
charge - - - 1,826 - - 1,826 - 1,826
Proceeds from
share issue 4 9 - - - - 13 - 13
Balance at 30
September
2015 4,809 50,905 2,911 7,695 (29,040) (4,217) 33,063 8,147 41,210
Profit for the
period - - - - - 1,282 1,282 81 1,363
Foreign
exchange
differences - - 254 - - - 254 146 400
Share based
payment
charge - - - 1,536 - - 1,536 - 1,536
Proceeds from
share issue 109 1,479 - (1,570) - - 18 - 18
Deferred
consideration
as part of
acquisition - - - (1,000) - - (1,000) - (1,000)
Deferred tax
on share
options - - - - - 22 22 - 22
Balance at 31
March 2016 4,918 52,384 3,165 6,661 (29,040) (2,913) 35,175 8,374 43,549
Profit /
(loss)
for the
period - - - - - 1,443 1,443 (436) 1,007
Foreign
exchange
differences - - 283 - - - 283 67 350
Share based
payment
charge - - - 1,748 - - 1,748 - 1,748
Deferred tax
on share
based
payment - - - - - 100 100 - 100
Proceeds from
share issue 14 72 - - - - 86 - 86
Balance at 30
September
2016 4,932 52,456 3,448 8,409 (29,040) (1,370) 38,835 8,005 46,840
The accompanying notes are an integral part of the consolidated
interim Financial Statements.
IMIMOBILE PLC CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Unaudited Consolidated Statement of Financial Position
As at 30 September 2016
As at As at
30 September 31 March
Notes 2016 2016
GBP000 GBP000
Non-current assets
Goodwill 20,110 19,770
Other intangible assets 4,738 4,355
Available-for-sale financial assets 266 202
Property, plant and equipment 5,348 4,658
Deferred tax assets 659 499
Total non-current assets 31,121 29,484
Current assets
Cash and cash equivalents 17,933 15,039
Trade and other receivables 29,453 24,336
Total current assets 47,386 39,375
Current liabilities
Trade and other payables (30,801) (24,476)
Total current liabilities (30,801) (24,476)
Net current assets 16,585 14,899
Non-current liabilities
Provision for defined benefit
gratuity (542) (463)
Deferred tax liabilities (324) (371)
Total non-current liabilities (866) (834)
Net assets 46,840 43,549
Equity attributable to the owners
of the parent
Share capital 4,932 4,918
Share premium 52,456 52,384
Translation reserve 3,448 3,165
Share based payment reserve 8,409 6,661
Capital restructuring reserve (29,040) (29,040)
Retained earnings (1,370) (2,913)
Equity attributable to shareholders
of the parent 38,835 35,175
Non-controlling interest 8,005 8,374
Total equity 46,840 43,549
The accompanying notes are an integral part of the consolidated
interim Financial Statements.
IMIMOBILE PLC CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Unaudited Consolidated Cash Flow Statement
For the six months ended 30 September 2016
Six months Six months
ended ended
30 September 30 September
Notes 2016 2015
GBP000 GBP000
Operating activities
Cash from operating activities 7 6,404 4,287
Exceptional items (166) -
Tax paid (588) (485)
Net cash from operating activities 5,650 3,802
Investing activities
Investment income 3 4
Purchases of intangible assets (904) (419)
Purchases of property, plant
& equipment (1,086) (668)
Acquisition of subsidiary net
of cash acquired - (3,387)
Acquisition of available-for-sale (65) -
financial assets
Exceptional items (190) (247)
Net cash used in investing activities (2,242) (4,717)
Financing activities
Proceeds from issuance of Ordinary
shares 86 13
Net cash used in financing activities 86 13
Net increase in cash and cash
equivalents 3,494 (902)
Cash and cash equivalents at
beginning of the period 15,039 14,617
Effect of foreign exchange rate
changes (600) (184)
Cash and cash equivalents at
end of the period 17,933 13,531
The accompanying notes are an integral part of the consolidated
interim Financial Statements.
IMIMOBILE PLC CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Notes to the unaudited consolidated interim Financial
Statements
For the six months ended 30 September 2016
1. Basis of preparation
The condensed consolidated interim Financial Statements for the
six month period ended 30 September 2016 have been prepared under
the measurement principles of IFRS, using accounting policies and
methods of computation consistent with those set out in the
Company's 31 March 2016 Financial Statements. As permitted by AIM
rules the Group has not applied IAS 34 'Interim reporting' in
preparing interim reports
IMImobile PLC (the "Company") is a company domiciled in the UK.
The consolidated interim Financial Statements of the Company for
the six month period ended 30 September 2016 comprise of the
Company and its subsidiaries (together referred to as "the
Group").
The consolidated interim Financial Statements are prepared under
the historical cost convention. A presentational currency of UK
Pound Sterling has been used and accounts have been translated from
other functional currencies into UK Pound Sterling.
The preparation of the consolidated interim Financial Statements
in conformity with IFRS requires the use of certain critical
accounting estimates. It also requires management to exercise its
judgement in the process of applying the Group's accounting
policies.
The preparation of the consolidated interim Financial Statements
in conformity with International Financial Reporting Standards
requires management to make judgements, estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
consolidated interim Financial Statements and the reported amounts
of revenue and expenses during the year. Actual results could
differ from the estimates.
2. Basis of consolidation
The Group interim financial statements incorporate the interim
financial statements of the Company and entities controlled by the
Company (its subsidiaries) made up to 30 September each year.
Control is achieved when the Company:
-- has the power over the investee;
-- is exposed, or has rights, to variable return from its involvement with the investee; and
-- has the ability to use its power to affect its returns.
The results of subsidiaries acquired or disposed of in any
period are included in the consolidated interim Income Statement
from the date of acquisition or up to the date of disposal.
Goodwill is measured as the excess of the sum of consideration
transferred. Goodwill is stated at cost less any accumulated
impairment losses. Goodwill is allocated to cash-generating units
and is not amortised but is tested annually for impairment.
Where necessary, adjustments are made to the financial
information of subsidiaries to bring the accounting policies into
line with those used by the Group. Inter-company balances and
transactions, including inter-company profits and unrealised
profits and losses are eliminated on consolidation.
The Group applies the acquisition method to account for business
combinations. The consideration transferred for the acquisition of
a subsidiary is the fair values of the assets transferred, the
liabilities incurred to the former owners of the acquiree and the
equity interests issued by the Group.
Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured
initially at their fair values at the acquisition date. The Group
recognises any non-controlling interest in the acquiree on an
acquisition-by-acquisition basis. When the Group ceases to have
control, any retained interest in the entity is re-measured to its
fair value at the date when control is lost, with the change in
carrying amount recognised in the Income Statement.
Entities included under common control
The following entities are considered to be under common control
and therefore have been included in the consolidated Financial
Statements for the six month periods ended 30 September 2015 and
2016:
Percentage
holding
Country of Local in each
Name of entity incorporation currency year
Bangladeshi
1. IMImobile VAS Limited Bangladesh Taka 76%
IMImobile VAS Limited
2. FZE UAE UAE Dirham 76%
IMImobile Europe UK Pound
3. Limited United Kingdom Sterling 100%
UK Pound
4. IMImobile SAT Limited United Kingdom Sterling 85%
IMImobile VAS Latin
5. America S.A. Panama US Dollar 76%
UK Pound
6. Skinkers Limited United Kingdom Sterling 100%
Chilli Digital UK Pound
7. Europe Limited United Kingdom Sterling 100%
Hungarian
8. IMD Europe Kft*** Hungary Forint 100%
WIN Wireless Network
9. Systems AG Switzerland Swiss Franc 100%
UK Pound
10. WIN Limited United Kingdom Sterling 100%
UK Pound
11. Tap2Bill Limited United Kingdom Sterling 100%
IMImobile VAS Nigeria Nigerian
12. Limited Nigeria Naira 76%
IMImobile VAS Private Sri Lankan
13. Limited Sri Lanka Rupee 76%
14. IMImobile Inc USA US Dollar 100%
IMI Mobile Private
15. Limited India Indian Rupee 76%
IMImobile VAS Costa
16. Rica S.A. Costa Rica US Dollar 76%
IMImobile Holdings UK Pound
17. Limited United Kingdom Sterling 100%
UK Pound
18. Txtlocal Limited United Kingdom Sterling 100%
UK Pound
19. Textlocal Limited United Kingdom Sterling 100%
IMImobile South
Africa Holdings UK Pound
20. Limited** United Kingdom Sterling 100%
IMImobile South UK Pound
21. Africa 1 Limited** United Kingdom Sterling 86%
IMImobile South UK Pound
22. Africa 2 Limited** United Kingdom Sterling 100%
Lenco International British Virgin
23. Limited* Islands US Dollar 89%
Lenco Technology British Virgin
24. Group Limited* Islands US Dollar 89%
Archer Digital South African
25. Limited* South Africa Rand 89%
IMImobile Limited
26. FZE** UAE UAE Dirham 100%
* acquired during the year ended 31 March 2016.
** incorporated during the year ended 31 March 2016.
*** dissolved during the year ended 31 March 2016.
3. Accounting policies
The principal accounting policies adopted are consistent with
those of the consolidated financial statements of IMImobile PLC for
the year ended 31 March 2016.
The accounting policies have been applied consistently
throughout the Group for the purposes of preparation of these
consolidated interim Financial Statements.
4. Exchange rates
The Group's reporting currency is UK Pound Sterling. The Group
translates the income statements of subsidiary operations to UK
Pound Sterling at average monthly exchange rates and the balance
sheets at the closing rates at 30 September. The principal exchange
rates used for transactions and translation purposes in respect of
one UK Pound Sterling are:
Currency Average Average Closing Closing
rate in rate in rate at rate at
the six the 30 September 30 September
months six months 2016 2015
ended ended
30 September 30 September
2016 2015
US Dollar 1.37 1.54 1.30 1.52
Euro 1.22 1.39 1.16 1.35
Indian Rupee 91.81 98.69 86.40 100.28
United Arab
Emirates Dirham 5.04 5.66 4.76 5.57
Nigerian Naira 349.60 304.28 406.30 299.25
South African
Rand 19.99 20.09 17.97 21.26
5. Business and geographical segments
The Group's operating segments are established on the basis of
those components of the Group that are evaluated regularly by the
Chief Operating Decision Maker in deciding how to allocate
resources and in assessing performance.
The Chief Operating Decision Maker considers results principally
by geographical region, which forms the Group's operating and
reporting segments. Geographically, the operating segments are
defined as Europe and Americas (Europe being substantially all to
the UK), India and South East Asia (SEA) and Middle East and Africa
(MEA), which also represent the Group's reportable segments.
The performance of the operating segments is assessed based on a
measure of revenue and gross profit (the result for the segment).
Any sales between segments are carried out at arm's length. As
costs are shared across geographies, results from gross profit to
profit after tax are assessed on a consolidated basis only. The
Group does not regularly provide information in relation to the
assets or liabilities of operating segments to management.
Geographical revenue and results
The following is an analysis of the Group's revenue and results
by geographical segment:
Europe India
and Americas and SEA MEA Total
GBP000 GBP000 GBP000 GBP000
Six months ended
30 September 2016
Revenue 19,224 5,213 11,587 36,024
Gross profit 10,604 2,881 6,742 20,227
Other operating
costs (14,963)
Depreciation and
amortisation (1,480)
Share based payment
charge (1,748)
Exceptional items (356)
Operating profit 1,680
Investment income 3
Profit before tax 1,683
Tax (676)
Profit after tax 1,007
Non-current assets 22,543 3,177 5,401 31,121
Six months ended
30 September 2015
Revenue 16,792 4,943 6,103 27,838
Gross profit 9,890 2,204 4,465 16,559
Other operating
costs (12,042)
Depreciation and
amortisation (1,129)
Share based payment
charge (1,826)
Acquisition related
costs (247)
Other exceptional -
costs
Operating profit 1,315
Investment income 4
Profit before tax 1,319
Tax (441)
Profit after tax 878
Non-current assets 20,706 3,111 5,183 29,000
During the period revenues from Customer "A" and Customer "B"
accounted for 13% (2015: 13%) and 16% (2015: 15%) of the Group's
revenue.
5. Business and geographical segments (continued)
The accounting policies of the reportable segments are the same
as the Group's accounting policies described in note 3 for each
period. The revenue from external parties reported is measured in a
manner consistent with that in the consolidated interim Income
Statement. Revenues are attributed to countries on the basis of the
customer's location.
The Group measures segment profit and loss as gross profit as
reported. The Group does not allocate general administration,
marketing and sales expenses to segments.
Additional voluntary disclosures
Alternative revenue model and results
The following disclosures are provided for additional purposes
only and does not form part of the Group's segmental reporting
under IFRS 8.
In addition to geographical performance, the Chief Operating
Decision Maker also considers the performance of the Group in line
with its revenue model, which has also been disclosed below. The
Group's revenue models are defined as:
1. Monthly recurring revenue which is made up of a combination of the following:
(a) Contracted, recurring revenues
(b) Non-contracted, repeating revenues, and
(c) Transactional revenues, typically a share of consumer spend.
2. Licence, one-off and professional service revenues.
These alternative revenue models arise in all geographical
segments. The following is an analysis of the Group's revenue and
result by delivery model:
Licence,
Monthly one-off
recurring and professional
revenue services Total
GBP000 GBP000 GBP000
Six months ended 30 September
2016
Revenue from external companies 34,769 1,255 36,024
Gross profit 19,065 1,162 20,227
Six months ended 30 September
2015
Revenue from external companies 26,372 1,466 27,838
Gross profit 15,298 1,261 16,559
6. Earnings per share ('EPS')
Six months Six months
ended ended
30 September 30 September
2016 2015 (restated)
pence pence
Basic EPS 2.9 4.4
Adjusted basic EPS 6.6 5.6
Diluted EPS 2.1 3.2
Adjusted diluted EPS 4.8 4.1
Six months Six months
ended ended
30 September 30 September
2016 2015 (restated)
Million Million
Weighted average number of ordinary
shares for the purpose of basic
EPS 49.2 48.0
Effect of exchange of Ordinary B
Shares 11.3 11.3
Effect of dilutive potential ordinary
shares: share options 7.1 6.4
Weighted average number of ordinary
shares for the purpose of diluted
EPS 67.6 65.7
The comparative figures have been restated to exclude the
profits attributable to non-controlling interests when calculating
basic and diluted EPS and include the impact of the remaining IFRS
2 charge per option in the statutory and adjusted results.
To provide more meaningful comparative information on the
Group's profitability, a number of non-GAAP adjusted profit
measures are used in these interim financial statements. Summarised
below is a reconciliation between statutory results to adjusted
results. The adjusted profit after tax earnings measure is also
used for the purpose of calculating adjusted earnings per
share.
Share
based Amortisation
Statutory payment Exceptional of acquired Adjusted
Six months ended results charge items intangibles Other* results
30 September 2016 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 36,024 - - - - 36,024
Gross profit 20,227 - - - - 20,227
Operating profit 1,680 1,748 356 276 - 4,060
Profit before tax 1,683 1,748 356 276 - 4,063
Tax (676) (61) (20) (55) - (812)
Profit after tax 1,007 1,687 336 221 - 3,251
EBITDA 3,160 1,748 356 - - 5,264
Basic EPS (pence) 2.9 3.4 0.7 0.5 (0.9) 6.6
Diluted EPS (pence) 2.1 2.5 0.5 0.3 (0.6) 4.8
Share
based Amortisation
Statutory payment Exceptional of acquired Adjusted
Six months ended results charge items intangibles Other* results
30 September 2015 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 27,838 - - - - 27,838
Gross profit 16,559 - - - - 16,559
Operating profit 1,315 1,826 247 - - 3,388
Profit before tax 1,319 1,826 247 - - 3,392
Tax (441) (262) (20) - - (723)
Profit after tax 878 1,564 227 - - 2,669
EBITDA 2,444 1,826 247 - - 4,517
Basic EPS (pence) 4.4 3.3 0.5 - (2.6) 5.6
Diluted EPS (pence) 3.2 2.4 0.4 - (1.9) 4.1
* Other adjustments as follows:
-- Basic adjusted EPS and diluted adjusted EPS includes profit
attributable to non-controlling interests not included in the
calculation of statutory basic and diluted EPS.
-- Diluted adjusted EPS includes the dilutive effect of share
options not included in statutory diluted EPS when they have an
anti-dilutive effect.
7. Notes to the Consolidated Cash Flow Statement
Six months Six months
ended ended
30 September 30 September
2016 2015
Cash flows from operating activities:
Profit before taxation 1,683 1,319
Adjustments:
Interest income (3) (4)
Share-based payments 1,748 1,826
Depreciation of property, plant
and equipment 900 870
Amortisation of intangible
assets 580 259
Exceptional items 356 247
Operating cash flows before
movements in working capital: 5,264 4,517
(Increase) / decrease in receivables (4,063) (1,717)
Increase / (decrease) in payables 5,839 1,391
Increase / (decrease) in provision
for defined benefit gratuity
plan 32 18
Foreign exchange loss / (gain)
on working capital (668) 78
Cash generated from operations 6,404 4,287
[1] EBITDA is defined as operating profit before tax,
depreciation, amortisation, net finance costs, costs incurred in
relation to acquisition activities and restructuring, impairment
charges, share-based compensation, amortisation of acquired
intangibles and exchange losses incurred on the Nigerian Naira
following its unpegging against the US dollar on 20 June and until
such time as liquidity returns to the Nigerian foreign exchange
market.
[2] Adjusted profit after tax is defined as profit after tax
before costs incurred in relation to acquisition activities and
restructuring, impairment charges, share-based compensation,
amortisation of acquired intangibles and exchange losses incurred
on the Nigerian Naira following its unpegging against the US dollar
on 20 June and until such time as liquidity returns to the Nigerian
foreign exchange market. See note 6 for a reconciliation.
[3] Adjusted EPS uses adjusted profit after tax as defined
above.
[4] Excluding the impact of the Archer acquisition
[5] Calculated as cash from operating activities as a proportion
of EBITDA.
[6] Excluding the impact of the Archer acquisition.
[7] EBITDA is defined as operating profit before depreciation,
amortisation, costs incurred in relation to acquisition activities
and restructuring, impairment charges, share-based compensation,
amortisation of acquired intangibles and exchange losses incurred
on the Nigerian Naira following its unpegging of the against the US
dollar on 20 June and until such time as liquidity returns to the
Nigerian foreign exchange market.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GGGCUGUPQPWC
(END) Dow Jones Newswires
November 15, 2016 02:01 ET (07:01 GMT)
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