TIDMIMTK
RNS Number : 0104U
Imaginatik PLC
17 June 2009
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17 June 2009
Imaginatik Plc
("Imaginatik" or the "Company")
Final Results
Imaginatik plc (AIM: IMTK), a leading provider of enterprise collaboration
software, announces its Final Results for the year ended 31 March 2009.
Financial Highlights
* Turnover increased 45% to GBP4.58m (2008: GBP3.16m)
* Maiden operating profit, before share option charges, of GBP0.13m (2008:
Operating loss GBP0.07m, before share option charges)
* EBITDA before share option charges increased to GBP238,000 (2008: GBP34,000)
* Annual recurring revenues increased 82% to GBP3.29m (2008: GBP1.81m)
* Cash and cash equivalents of GBP1.14m (2008: GBP1.09m)
Operational Highlights
* Continued growth of blue-chip customer list, including the addition of Reed
Elsevier, Chubb, Novartis and Bombardier Aerospace
* First annual contract signed through IBM global reseller agreement
* Increased investment into sales and marketing operations following a Placing in
September 2008 which raised GBP203,000 of new funding, net of expenses
* Release of Idea Central Version 9 with new features and functionality
Chief Executive, Mark Turrell commented: "We continue to occupy a leading
position in our niche of the enterprise collaboration software market, through
our proven ability to offer a scalable and robust enterprise-level solution.
During the year, over 40 of the world's largest companies utilised Idea Central
to identify millions of dollars worth of cost-savings and process improvements.
"The increase in our client base and average contract value has seen revenues
grow by 45% to GBP4.58m and helped the Company record its maiden year of
operating profit, before share option charges. These results combined with our
growing recurring revenue stream, healthy cash position and strengthened sales
and marketing operations mean we have good reason to be confident of another
strong performance in the year ahead."
For further information please contact:
+-----------------------------------+---------------------------+
| Imaginatik plc | Tel: 020 7917 2975 |
+-----------------------------------+---------------------------+
| Mark Turrell, CEO / Shawn Taylor, | |
| CFO | |
+-----------------------------------+---------------------------+
| | |
+-----------------------------------+---------------------------+
| Arbuthnot Securities Limited | Tel: 020 7012 2000 |
+-----------------------------------+---------------------------+
| Tom Griffiths | |
+-----------------------------------+---------------------------+
| | |
+-----------------------------------+---------------------------+
| ICIS | Tel: 020 7651 8688 |
+-----------------------------------+---------------------------+
| Caroline Evans-Jones / Hilary | |
| Millar | |
+-----------------------------------+---------------------------+
About Imaginatik
Imaginatik is a leading provider of web-based enterprise collaboration software.
Imaginatik's core software, Idea Central, is designed to help companies focus on
idea generation towards strategic business objectives, and to share, develop and
review those ideas across the organisation. Some of the world's largest
organisations such as Merck, Dow, Chevron, General Electric and Cargill use
Imaginatik's software, consulting and leading-edge research to enable their
best-of-breed innovation, cost-reduction and process improvement activities.
Having been named as a World Economic Forum Technology Pioneer and a finalist
for the IBM Lotus Awards in the Best Industry Solution category, Imaginatik's
software and consulting services have helped clients discover significant
sources of additional revenue, as well as tangible cost savings. Imaginatik is
also committed to developing strategic solutions in the field of innovation,
working with academic institutions such as the Hult Business School in Boston,
and the Cass School of Business, London, as well as leading practitioners of
corporate innovation.
For further information please visit www.imaginatik.com
Chairman's Statement
The year ended 31 March 2009 was a year of significant achievement for
Imaginatik, in which the Company delivered another year of material revenue
growth and secured its maiden year of operating profit before share option
charges. This has been made possible through the strong management of the
business by the executive team, the effectiveness of our sales operations and
the compelling proposition of our software and services. Whilst we continue to
seek ways to improve performance, we are progressing well down the path to
sustainable revenue and profit growth.
Imaginatik has not been immune to the broader economic downturn, but as a
relatively small software company, it has the agility to adjust rapidly to the
changing currents of a shifting global economy. This has stood us in good stead
during the year, enabling a seamless change of emphasis in our marketing
messages from one that is primarily focused on innovation to a message of cost
reduction and efficiency savings, two areas for which our software is extremely
well suited. These messages have been well received by both our current and
prospective customers for whom we have continued to deliver some quite
extraordinary levels of return on their investment.
One of the Company's key assets is our exceptional customer base. New customers
added during the year include such well known multi-nationals as Reed Elsevier,
Chubb, Novartis and Bombardier Aerospace.
Since the year end, Geoff Carss was appointed to the Board as Executive Vice
President with responsibility for sales, marketing and professional services.
Previously at IBM and Ernst & Young, Geoff brings a high level of sales and
business development expertise and industry contacts, we look forward to working
with him in the years to come. In July 2008 we announced the departure of
Non-executive director Philip Nutburn from the Board. Philip joined the Board at
the time of the IPO and we would like to thank him for his contribution to the
growth of the business.
Once again, it is the energy and commitment of our employees in the US and UK
which have been the foundation for our success. I would like to thank them and
our customers for their continued support as we look towards another successful
year ahead.
Howard Marshall
Non-Executive Chairman
17 June 2009
Chief Executive's Review
As highlighted at the time of our Interim Results, we are continuing to mature
as a company with a growing confidence in the value of our enterprise
collaboration management software. I am pleased to report that despite the poor
global economic conditions, we continued to experience strong demand for our
software and services.
During the year we have focused on the continued development of our sales
operations and selling processes, whilst cultivating a growing number of
reference customers willing to endorse the Company's capabilities. Towards the
end of the year we initiated a more pro-active marketing strategy to support our
efforts in sales and in particular embarked on marketing the use of our
technology for cost reduction. We intend to build on these foundations in the
current financial year.
We continue to move our focus away from one-off project deals to annual
licences, resulting in an increase in the number of annual deals signed in the
year. This in turn has increased our recurring revenue base to GBP3.29m as at 31
March 2009, an increase of GBP2.6m in the last three years. Furthermore we have
no single client contributing more than 10% of the total. This provides us with
an excellent foundation for the years ahead.
Financial review
Turnover for the year ended 31 March 2009 grew by 45% to GBP4.58m (2008:
GBP3.16m), of which 18% was derived from up-selling our software and services
into existing customers, 33% from selling into new clients, and 49% from
recurring business (2008 %: 20:52:28). We added 11 new customers on annual
contracts (2008: 9) and the revenue split between geographies remained similar
to the previous year, with 82% arising in the USA and 18% from the Rest of the
World. We expect the US to continue to be our core geography for the foreseeable
future, although we are now seeing a growing market in Europe and increasing
interest from the Far East and Australia.
The growth in our client base has increased our annual recurring revenues from
GBP1.81m at 31 March 2008 to GBP3.29m at 31 March 2009, an increase over the
year of GBP1.48m. Of this GBP0.73m was the result of favourable currency
movements principally in respect of the US$. During the year we reviewed our
exposure to currency risk and elected not to hedge on the basis that the
business has a natural hedge in place with just over 50% of all costs being in
US$, we will keep this position under review.
Total operational costs, before share option charges, increased 38% in the year
to GBP4.45m (2008: GBP3.22m), reflecting the growing business and in particular
an increased investment in our sales operations. The Company secured an
operating profit before share option costs of GBP128,893 moving from an
operating loss in 2008 of GBP56,533. In order to maintain an attractive
incentivisation package for all of our employees we rebased all share options to
4.0p per option; this resulted in a profit and loss charge for the year of
GBP233,260 (2008: GBP74,015). After accounting for share options, the Company
recorded a loss on ordinary activities before taxation of GBP102,428, a
reduction of 27% from the previous year (2008: GBP139,647).
In September 2008 we raised GBP223,268 before expenses by way of a conditional
placing of 5,550,000 new Ordinary Shares of 0.0625p each at 4p per share from
institutions. The net proceeds of the placing have been utilised to strengthen
our sales operation in the US.
Cash and cash equivalents at the year end were GBP1.14m (2008: GBP1.09m) and net
total equity attributable to shareholders has risen to GBP1.45m (2008:
GBP1.06m).
Sales and marketing
During the year we have made considerable efforts to strengthen and grow our
direct sales team, adding new sales people in the US. We are continuing to
recruit in this area and expect to see the impact of revenues from this
increased headcount during the next financial year.
As stated above, our strategy in terms of new customer wins is to sign an
increasing number of annual contracts which deliver long-term revenue streams;
wherever possible we are moving away from one-off pilot projects. This has
resulted in the signing of 11 new annual contract customers in the year,
including Capital One, Novartis and Telstra, an increase from 9 in 2008, and we
now have over 40 customers on annual contracts. As well as signing a higher
number of contracts, the last year also saw the Company contract a number of
multi-year deals and we have seen the average contract value rise by over 68% in
the year. All of our contracts continue to be delivered under the Software as a
Service (SaaS) model.
We continue to sell into a wide range of industries, with new clients in the
year coming from the telecommunications, pharmaceutical, insurance, medical,
chemicals, publishing and manufacturing industries. We were pleased to sign
Boehringer Ingelheim during the year, our sixth major pharmaceutical customer.
This is proving to be a particularly fruitful industry for us and one on which
we intend to continue to focus.
As mentioned at the time of our Interim Results, the growing awareness of the
potential of enterprise collaboration management software and our continued
efforts to grow a vocal user group of customers resulted in excellent attendance
levels at our first European Forum held in London in November 2008.
Representatives from a wide range of companies attended from across Europe and
the US, including both current and prospective customers. This is a strong
demonstration of the growing importance of collaboration management software to
enterprises.
During the latter part of the year we took a strategic decision to increase our
levels of investment in marketing the Company and our offerings. We now have an
expanded marketing group and have launched a number of new marketing initiatives
including trade PR in the US and targeted initiatives to the Fortune 100
companies on the use of Idea Central to generate cost-savings. We expect this
increased level of investment to continue in the year ahead.
In addition to software sales, we are also now increasing our capabilities in
the area of Professional Services; with a long term roadmap that demonstrates to
new and existing clients how we can assist them in achieving longer-term success
in the use of our software and processes.
Customer case studies
Idea Central continues to deliver significant results for some of the world's
leading organisations. Some examples of projects implemented over the year
through the use of our software are as follows:
* Chubb: the 11th largest property and casualty insurer in the US.
The goal of the Idea Central implementation was to identify, within three
months, viable new revenue opportunities from all parts and levels of the
organisation. The Chubb Group of Insurance companies realised the importance of
speed, agility and collaboration in the way it found and exploited new revenue
opportunities. A proven product innovator with a long list of firsts, Chubb
sought to build on that strength by making innovation an even more pervasive
part of its culture. With more than 10,000 employees spread over 120 offices in
28 countries, the sheer size and complexity of the Chubb organisation posed a
barrier to large-scale collaborative innovation. Using Idea Central, Chubb ran a
one month ideation event designed to solicit new ideas for profitable growth
from all of its employees around the world. The participation levels were much
higher than expected, with 35% of Chubb's 10,000 employees participating,
generating significant new revenue opportunities.
* CSC: A leading global consulting, systems integration and outsourcing company.
The goal was to create a platform to bring together CSC's best ideas and make
them a reality. The company's practice is for account teams to work as
autonomous units, enabling close proximity to the client. However, one byproduct
of this decentralisation is a tendency for large accounts to develop and
maintain their own set of practices, a pattern reinforced by the difficulty of
sharing the best practices and related wisdom between account teams. CSC
realised the need for a solution that would enable these disparate groups to
engage in highly focused collaboration, both in terms of goals and timeframe.
After a series of highly successful trials, CSC has embraced Idea Central and
made it the linchpin of how CSC brings the company together to solve problems.
CSC now enjoys closer, faster and more fruitful collaboration across account
teams and business units.
* Pfizer: the largest research-based biomedical and pharmaceutical company in the
world and a 6% shareholder in Imaginatik.
The Challenge was to optimise and streamline creative thinking to sustain a
solid pipeline of new products and drive efficient problem solving. The solution
was the implementation of a collaborative "Idea Farm" application built by
Imaginatik on the IBM Lotus Domino platform, managing end-to-end innovation
process from idea generation to review and decision. The outcomes were:
* Identified US$100 million in pipeline net present value
* Achieved US$20 million in cost avoidance since 2006
* Leveraged intellectual capital to maximise returns on research investments
* Aligned creative potential of individuals with current and future business needs
* Breeding faster pace of innovation to solve problems in healthcare
Partnering and reselling
Complementary to our direct sales team, we continue to work with various
partners and are actively seeking ways in which to grow this channel to market
and extend our global reach. Our partnership with IBM delivered our first annual
client during the year, and CSC, as one of the world's largest IT consultancies
is also proving to be not only a successful customer, but also a potential lead
generator.
Responding to customers' demand to add more value to our implementations, we
have established during this year a partnership with Hult's IXL Centre to
provide high level innovation training and thought leadership.
Market and competition
The market for enterprise collaboration software continues to grow and is
recognised by Forrester Research as a strategic growth area for major
corporations. The flexibility of the Imaginatik collaboration solution allows
our clients to apply this technology for multiple purposes, ranging from
innovation and product development, to cost reduction and sustainability. This
is proving highly beneficial in the current economic climate as clients have
become more interested in the tool for cost reduction, with a number of clients
reporting excellent results from using the software across their businesses to
solve a wide range of problems. General purpose tools such as Microsoft
Sharepoint and open-source software such as blogs and wikis lack the management
capabilities required for this space. A purpose built tool such as Imaginatik's
Idea Central is proving more effective at supporting client needs for rapid cost
effective implementation and project success.
Very few collaborative software suites been developed to focus on the areas of
process improvement, cost efficiencies and innovation, fewer yet have been
developed to be robust and scalable enough for implementation at an enterprise
level. This is where we believe Imaginatik is unique. In over a decade of
working with blue-chip companies, we have built up a leading position offering a
web-based software suite, securely hosted, into which some of the world's
biggest organisations have trusted their most sensitive information. The fact
that we are repeatedly selling additional software and services into these
customers is a huge endorsement and provides us significant competitive
advantage in the market place.
Product and services
We have continued to invest in the development of Idea Central to ensure the
product is oriented correctly as the market for Enterprise Collaboration
Management software evolves and we plan to increase our product investment in
the next financial year. During the year, version 9 of Idea Central was launched
with enhanced reporting structures, increased functionality in the area of
corporate social networking, improvements in scalability and enterprise
capabilities. On the development roadmap for the year ahead is a specialist
chemistry application which is being developed in conjunction with Pfizer and a
third party software house. We are also investing in further enhancing the user
interface.
Change of advisor
On 2 June 2009, post the year end, the Company announced the appointment of
Arbuthnot Securities Limited as its nominated adviser and broker.
Outlook
We continue to occupy a leading position in our niche of the enterprise
collaboration software market, through our proven ability to offer a scalable
and robust enterprise-level solution. During the year, over 40 of the world's
largest companies utilised Idea Central to identify millions of dollars worth of
cost-savings and process improvements.
The increase in our client base and average contract value has seen revenues
grow by 45% to GBP4.58m and helped the Company record its maiden year of
operating profit, before share option charges. These results combined with our
growing recurring revenue stream, healthy cash position and strengthened sales
and marketing operations mean we have good reason to be confident of another
strong performance in the year ahead.
Mark Turrell
Chief Executive Officer
17 June 2009
Consolidated Income Statement for the year ended 31 March 2009
+------------------------------------------------------+------+-------------+-------------+
| | | Unaudited | Audited |
+------------------------------------------------------+------+-------------+-------------+
| |Note | 2009 | 2008 |
+------------------------------------------------------+------+-------------+-------------+
| | | GBP | GBP |
+------------------------------------------------------+------+-------------+-------------+
| | | | |
+------------------------------------------------------+------+-------------+-------------+
| Revenue | 2 | 4,580,809 | 3,159,002 |
+------------------------------------------------------+------+-------------+-------------+
| | | | |
+------------------------------------------------------+------+-------------+-------------+
| | | | |
+------------------------------------------------------+------+-------------+-------------+
| Staff costs | | (2,642,770) | (2,029,927) |
+------------------------------------------------------+------+-------------+-------------+
| Depreciation written off tangible non-current assets | | (66,080) | (56,820) |
+------------------------------------------------------+------+-------------+-------------+
| Amortisation written off intangible non-current | | (42,865) | (33,992) |
| assets | | | |
+------------------------------------------------------+------+-------------+-------------+
| Other external charges | | (312,196) | (172,407) |
+------------------------------------------------------+------+-------------+-------------+
| Other operating charges | | (1,621,265) | (996,404) |
+------------------------------------------------------+------+-------------+-------------+
| | | | |
+------------------------------------------------------+------+-------------+-------------+
| Operating loss before financing and taxation | | (104,367) | (130,548) |
+------------------------------------------------------+------+-------------+-------------+
| | | | |
+------------------------------------------------------+------+-------------+-------------+
| Operating profit/(loss) before share option costs | | 128,893 | (56,533) |
+------------------------------------------------------+------+-------------+-------------+
| Share option costs | | (233,260) | (74,015) |
+------------------------------------------------------+------+-------------+-------------+
| | | | |
+------------------------------------------------------+------+-------------+-------------+
| Finance income / (costs) | | 1,939 | (9,099) |
+------------------------------------------------------+------+-------------+-------------+
| Loss on ordinary activities before taxation | | (102,428) | (139,647) |
+------------------------------------------------------+------+-------------+-------------+
| | | | |
+------------------------------------------------------+------+-------------+-------------+
| Taxation expense | | - | - |
+------------------------------------------------------+------+-------------+-------------+
| Loss on ordinary activities for the year | | (102,428) | (139,647) |
+------------------------------------------------------+------+-------------+-------------+
| Loss per share: Basic and diluted | 3 | (0.08p) | (0.12p) |
+------------------------------------------------------+------+-------------+-------------+
| | | | |
+------------------------------------------------------+------+-------------+-------------+
Consolidated Statement of Changes in Equity for the Year Ended 31 March 2009
+---------------------------------------+---------+-----------+---------+-------------+-----------+
| | Share | Share | Share | Retained | Total |
| | capital | premium | option | earnings | |
| | | | reserve | | |
+---------------------------------------+---------+-----------+---------+-------------+-----------+
| | GBP | GBP | GBP | GBP | GBP |
+---------------------------------------+---------+-----------+---------+-------------+-----------+
| Loss for the year | - | - | - | (102,428) | (102,428) |
+---------------------------------------+---------+-----------+---------+-------------+-----------+
| Share options | - | - | 233,260 | - | 233,260 |
+---------------------------------------+---------+-----------+---------+-------------+-----------+
| | - | - | 233,260 | (102,428) | 13,083 |
+---------------------------------------+---------+-----------+---------+-------------+-----------+
| | | | | | |
+---------------------------------------+---------+-----------+---------+-------------+-----------+
| Shares issued | 4,738 | 259,678 | - | - | 264,416 |
+---------------------------------------+---------+-----------+---------+-------------+-----------+
| | | | | | |
+---------------------------------------+---------+-----------+---------+-------------+-----------+
| Balance at 1 April 2008 | 78,182 | 2,170,258 | 103,515 | (1,295,934) | 1,056,021 |
+---------------------------------------+---------+-----------+---------+-------------+-----------+
| | | | | | |
+---------------------------------------+---------+-----------+---------+-------------+-----------+
| Balance at 31 March 2009 | 82,920 | 2,429,936 | 336,775 | (1,398,362) | 1,451,269 |
+---------------------------------------+---------+-----------+---------+-------------+-----------+
Consolidated Balance Sheet as at 31 March 2009
+----------------------------------+-----------------+---------------+-----------------+---------------+
| | Unaudited | Audited |
+----------------------------------+---------------------------------+---------------------------------+
| | 2009 | 2008 |
+----------------------------------+---------------------------------+---------------------------------+
| | GBP | GBP | GBP | GBP |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| ASSETS | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Non-current assets | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Property, plant and equipment | 91,311 | | 59,935 | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Intangible assets | 154,239 | | 99,626 | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| | | 245,550 | | 159,561 |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Current assets | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Trade and other receivables | 1,551,522 | | 885,486 | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Cash and cash equivalents | 1,136,231 | | 1,090,490 | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| | | 2,687,753 | | 1,975,976 |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Total assets | | 2,933,303 | | 2,135,537 |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| EQUITY AND LIABILITIES | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Equity | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Issued capital | 82,920 | | 78,182 | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Share premium | 2,429,936 | | 2,170,258 | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Share option reserve | 336,775 | | 103,515 | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Retained earnings | (1,398,362) | | (1,295,934) | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Total equity | | 1,451,269 | | 1,056,021 |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Liabilities | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Non-current liabilities | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Interest-bearing loans and | - | | 17,184 | |
| borrowings | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| | | - | | 17,184 |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Current liabilities | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Interest-bearing loans and | 19,713 | | 27,051 | |
| borrowings | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Trade and other payables | 1,462,321 | | 1,035,281 | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| | | 1,482,034 | | 1,062,332 |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Total liabilities | | 1,482,034 | | 1,079,516 |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| | | | | |
+----------------------------------+-----------------+---------------+-----------------+---------------+
| Total equity and liabilities | | 2,933,303 | | 2,135,537 |
+----------------------------------+-----------------+---------------+-----------------+---------------+
Consolidated Cash Flow Statement for the Year Ended 31 March 2009
+-----------------------------+------+----------+-----------+----------+-----------+
| | | Unaudited | Audited |
+-----------------------------+------+----------------------+----------------------+
| | | 2009 | 2008 |
+-----------------------------+------+----------------------+----------------------+
| | Note | GBP | GBP | GBP | GBP |
+-----------------------------+------+----------+-----------+----------+-----------+
| | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
| Cash flows from operating | 6 | | 781 | | (210,364) |
| activities | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
| | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
| Investing activities | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
| Acquisition of property, | | (97,456) | | (24,764) | |
| plant and equipment | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
| Acquisition of intangible | | (97,478) | | - | |
| assets | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
| Net cash used in investing | | | (194,934) | | (24,764) |
| activities | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
| | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
| Net cash flow before | | | (194,153) | | (235,128) |
| financing activities | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
| | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
| Financing activities | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
| | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
| Net proceeds from the issue | | 264,416 | | 485,045 | |
| of share capital | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
| Repayment of borrowings | | (24,522) | | (21,873) | |
+-----------------------------+------+----------+-----------+----------+-----------+
| Net cash generated from | | | 239,894 | | 463,172 |
| financing activities | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
| | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
| Net increase in cash and | | | 45,741 | | 228,044 |
| cash equivalents | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
| | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
| Opening net cash and cash | | | 1,090,490 | | 862,446 |
| equivalents | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
| Closing net cash and cash | | | 1,136,231 | | 1,090,490 |
| equivalents | | | | | |
+-----------------------------+------+----------+-----------+----------+-----------+
Notes to the consolidated financial statements
1. Basis of preparation
The financial information contained in this unaudited preliminary announcement
does not constitute accounts as defined by section 240 of the Companies Act
1985. The financial information for the year ended 31 March 2008 is derived from
the statutory accounts for that year which have been delivered to the Registrar
of Companies. The auditors reported on those accounts, their report was
unqualified and did not contain a statement under section 237(2) or (3) of the
Companies Act 1985. The statutory accounts for the year ended 31 March 2009 will
be finalised based on the information in this unaudited preliminary announcement
and will be delivered to the Registrar of Companies following the Annual General
Meeting. The Group has prepared its financial statements for the year ended 31
March 2009 in accordance with International Financial Reporting Standards 'IFRS'
as adopted by the European Union.
2. Segmental reporting
The Directors consider that the Group has one class of business, being the
provision of innovation software and related professional services. These
services are provided to clients in different geographical areas using resources
shared between those markets. Therefore segmental information is presented in
respect of the Group's geographical segments relating to where customers are
based. This is the primary basis of segmental reporting. The geographical
segmental reporting reflects the Group's management and internal reporting
structure.
Segmental results include items directly attributable to a segment as well as
those that can be allocated on a reasonable basis. The location of customers is
not significantly different to the location of assets.
+----------------------------------------+-------------+-------------+
| | 2009 | 2008 |
+----------------------------------------+-------------+-------------+
| | GBP | GBP |
+----------------------------------------+-------------+-------------+
| Segmental revenue: | | |
+----------------------------------------+-------------+-------------+
| United States of America | 3,698,510 | 2,619,246 |
+----------------------------------------+-------------+-------------+
| Rest of the World | 882,299 | 539,756 |
+----------------------------------------+-------------+-------------+
| | 4,580,809 | 3,159,002 |
+----------------------------------------+-------------+-------------+
| | | |
+----------------------------------------+-------------+-------------+
| Segmental result: | | |
+----------------------------------------+-------------+-------------+
| United States of America | (67,984) | 241,911 |
+----------------------------------------+-------------+-------------+
| Rest of the World | (34,444) | (381,558) |
+----------------------------------------+-------------+-------------+
| | (102,428) | (139,647) |
+----------------------------------------+-------------+-------------+
| Carrying amount: | | |
+----------------------------------------+-------------+-------------+
| United States of America | | |
+----------------------------------------+-------------+-------------+
| Assets | 2,380,269 | 1,324,254 |
+----------------------------------------+-------------+-------------+
| Liabilities | (919,413) | (440,793) |
+----------------------------------------+-------------+-------------+
| Rest of the world | | |
+----------------------------------------+-------------+-------------+
| Assets | 553,034 | 811,283 |
+----------------------------------------+-------------+-------------+
| Liabilities | (562,621) | (638,723) |
+----------------------------------------+-------------+-------------+
| | 1,451,269 | 1,056,021 |
+----------------------------------------+-------------+-------------+
| | | |
+----------------------------------------+-------------+-------------+
| Additions to property, plant, | | |
| equipment, and intangible assets: | | |
+----------------------------------------+-------------+-------------+
| United States of America | 58,774 | 12,432 |
+----------------------------------------+-------------+-------------+
| Rest of the world | 136,160 | 12,332 |
+----------------------------------------+-------------+-------------+
| | 194,934 | 24,764 |
+----------------------------------------+-------------+-------------+
| Other: | | |
+----------------------------------------+-------------+-------------+
| Depreciation | | |
+----------------------------------------+-------------+-------------+
| United States of America | 49,422 | 34,456 |
+----------------------------------------+-------------+-------------+
| Rest of the world | 16,658 | 22,364 |
+----------------------------------------+-------------+-------------+
| Amortisation | | |
+----------------------------------------+-------------+-------------+
| Rest of the world | 42,865 | 33,992 |
+----------------------------------------+-------------+-------------+
| Share option costs | | |
+----------------------------------------+-------------+-------------+
| United States of America | 53,650 | 19,759 |
+----------------------------------------+-------------+-------------+
| Rest of the world | 179,610 | 57,256 |
+----------------------------------------+-------------+-------------+
| Other share-based payments | | |
+----------------------------------------+-------------+-------------+
| Rest of the world | 68,490 | 92,125 |
+----------------------------------------+-------------+-------------+
3. Earnings per share
Basic loss per share (EPS) has been calculated in accordance with IAS 33
'Earnings per share'. The calculation of EPS is based on losses of GBP102,428
(2008: losses of GBP139,647) and on a weighted average number of ordinary shares
in existence during the year of 129,258,575 (2008: 117,270,883).
The share options issued during the current and prior year are considered to be
anti-dilutive, and therefore diluted EPS equals basic EPS.
4. Barter transactions
During the year barter transactions totalling GBP246,000 were entered into by
the Group. There was no profit or loss recorded on these transactions. At the
year end there was deferred income balance of GBP13,000 and deferred costs of
GBP13,000 in respect of barter transactions.
5. Share capital
+-------------------------------------+------+-------------+------------+
| | | 2009 | 2008 |
| | | GBP | GBP |
+-------------------------------------+------+-------------+------------+
| Authorised | | | |
+-------------------------------------+------+-------------+------------+
| 500,000,000 ordinary shares of 0.0625p | 312,500 | 312,500 |
| each | | |
+--------------------------------------------+-------------+------------+
| | | |
+--------------------------------------------+-------------+------------+
| | | 2009 | 2008 |
| | | GBP | GBP |
+-------------------------------------+------+-------------+------------+
| Allotted, called up and fully paid | | | |
+-------------------------------------+------+-------------+------------+
| 132,671,917 ordinary shares of | | 82,920 | - |
| 0.0625p each | | | |
+-------------------------------------+------+-------------+------------+
| 125,090,957 ordinary shares of | | - | 78,182 |
| 0.0625p each | | | |
+-------------------------------------+------+-------------+------------+
| | | 82,920 | 78,182 |
+-------------------------------------+------+-------------+------------+
On 24 June 2008:
- 736,842 new ordinary shares of 0.0625p each with a fair value of GBP34,872
were issued to directors in lieu of accrued salary.
On 3 September 2008:
- 5,550,000 new ordinary shares of 0.0625p each were placed with investors
for a net cash consideration of GBP202,045. Issue costs relating to the above
placing were GBP20,083, and have been deducted from the share premium account
On 19 December 2008:
- 1,294,118 new ordinary shares of 0.0625p each with a fair value of
GBP27,500 were issued to directors in lieu of accrued salary.
6. Reconciliation of operating loss to net cash outflow from operating
activities
+--------------------------------------------+------------+-------------+
| | | |
+--------------------------------------------+------------+-------------+
| | 2009 | 2008 |
+--------------------------------------------+------------+-------------+
| | GBP | GBP |
+--------------------------------------------+------------+-------------+
| Operating loss | (104,367) | (130,548) |
+--------------------------------------------+------------+-------------+
| Depreciation of tangible fixed assets | 66,080 | 56,820 |
+--------------------------------------------+------------+-------------+
| Amortisation of intangible fixed assets | 42,865 | 33,992 |
+--------------------------------------------+------------+-------------+
| Share option charge | 233,260 | 77,015 |
+--------------------------------------------+------------+-------------+
| Other share-based payments | - | 22,125 |
+--------------------------------------------+------------+-------------+
| Net interest paid | 1,939 | (9,099) |
+--------------------------------------------+------------+-------------+
| | | |
+--------------------------------------------+------------+-------------+
| Operating cash flows before movements in | 239,777 | 50,305 |
| working capital | | |
+--------------------------------------------+------------+-------------+
| | | |
+--------------------------------------------+------------+-------------+
| Increase in trade and other receivables | (666,036) | (87,493) |
+--------------------------------------------+------------+-------------+
| Increase/(decrease) in payables | 427,040 | (173,176) |
+--------------------------------------------+------------+-------------+
| Net movement in working capital | (238,996) | (260,669) |
+--------------------------------------------+------------+-------------+
| | | |
+--------------------------------------------+------------+-------------+
| Net cash from operating activities | 781 | (210,364) |
+--------------------------------------------+------------+-------------+
7. Availability
Copies of the Company's unaudited preliminary results announcement are available
from its offices at 6 Wessex Way, Colden Common, Winchester SO21 1WP and on its
website, www.imaginatik.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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