itim Group
itim Group plc

itim Group plc share price, company news, analysis and interviews

itim Group plc (LON:ITIM) is a SaaS-based technology company that enables store-based retailers to optimise their businesses to improve financial performance and effectively compete with online competitors.

itim adds retail value by helping multi-channel retailers optimise their business and their stores.

The company offers a complete set of retail software solutions including:

Single Sales Platform

Consumers expect the same offer from a retailer no matter how they shop with you. They want to have access to the same product information, inventory, promotions and pricing. 

itim has developed a single platform that provides all the selling capability you need covering POS, website, mobile apps and in store service all with the ability to switch between shopping globally or just a specific store.

Single View of Customer

Retailers need a central repository of all customer information including profile information, preferences, wish lists, reviews, order history, contact history and more.

itim can manage this information and make it instantly available to all customer touch-points including POS, tablets, browser, website and third-party applications. 

Cross Channel Promotions

Many retailers have to maintain promotions for different channels separately, often having to cope with differences in capability between channels. itim provides a highly sophisticated promotions engine that can cope with the most complex promotional mechanics and which can be used to drive all of your selling channels from a single source.

itim group

Single View of Stock

When customers build a basket of products, they want to know whether you have the stock either owned or with 3rd parties and when/where they can have the products.

itim provides a real time stock engine that tracks every stock movement within your business and understands the fulfilment capabilities so that it can present a customer with a list of when and where they can receive their products along with how much it will cost for each option.

Optimised Order Routing

Once a customer has placed on order, the retailer needs to identify the most profitable way to fulfil that order while meeting the customer promise.

The itim order routing engine will identify the optimal way to fulfil an order and will execute processes to manage, track and trace progress. When the store is part of the process this includes apps for picking, packing, dispatch and collection. 

Last Mile Delivery

Utilising store stock for online orders allows retailers to increase availability and deliver more rapidly than their competitors. New fulfilment options are appearing all the time.

itim has developed a local courier integration capability to make adding new delivery partners quick and easy.

itim group

Price Optimisation

A product is worth the price a customer is prepared to pay for it no matter what you bought it for. What is key for retailers is the managing of stock turn and price is the key lever for ensuring that product is sold through at the required rate.

itim provides an advanced AI based engine to optimise price that ensure the maximum profitability is achieved for the desired sell through.

Stock Optimisation

Retailers need to maximise the return on investment in the stock they have bought. This means ensuring products are in the best locations for meeting customer demand at the best possible margin.

itim provides an AI based optimisation capability for determining the optimal range to hold in each store or fulfilment location. 

Supplier Integration

Key to reduce costs and serving customer more effectively is the ability to collaborate with suppliers.

itim provides solutions to enable the automation of these processes. Behind this is their market leading capability for invoice matching along with managing to agreed terms such as retros and overriders.

stock optimisation itim (ITIM)

Merchandising

Merchandising teams in many retailers spend much of their time executing inefficient processes just to operate the business. This leaves them with little time to thing about how to trade their categories more effectively.

By providing efficient processes for merchandising processes such as store grading, ranging, purchase ordering, demand forecasting, replenishment and allocation, supplier management and stock management, itim frees up Merchandisers time to focus on how to increase sales and margin.

Retail ERP

For a retailer to be able to take advantage of advanced multi-channel capability, while keeping costs low, they need an efficient ERP that is designed specifically for retail. With a history of only working with retailers.

itim is able to meet the needs of retailers in areas such as supplier management, purchase order and stock management rapidly with minimal configuration. Their solutions are optimised for automation for retail, this reducing the demands on your people and the need for headcount.

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itim Group

itim Group plc share price

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Interviews

itim Group embracing A.I. for store-based retailer optimisation

itim Group (LON:ITIM) CEO Ali Athar joins DirectorsTalk Interviews to discuss A.I. and its effect on businesses.

Having launched the A.I. powered suite of solutions Profimetrics, Ali explains what is meant by A.I., the opportunities for it in retail, how it will benefit retailers and what it is that itim is focussed on exactly.

https://vimeo.com/841824501

itim Group plc (LON:ITIM) is a SaaS-based technology company that enables store-based retailers to optimise their businesses to improve financial performance and effectively compete with online competitors.

Question & Answers

itim group

itim Group product excellence in platform delivery outcomes (LON:ITIM)

Itim Group plc (LON:ITIM) Founder and Chief Executive Officer Ali Athar caught up with DirectorsTalk for an exclusive interview to discuss highlights from their interim results, how it helps its customers, product development, helping customers during macroeconomic headwinds and what we can expect from the Group going forward.

Q1: itim Group released interim results this morning, can you just talk us through the highlights?

A1: The highlights are that we are making steady progress. Our fundraising last year was done to allow us to hire more people and invest more in our platforms to make us more attractive to our customers. The results are just a reflection of the fact that we’ve been investing aggressively in trying to achieve that.

Our goal this year is to increase our contracted ARR by ÂŁ3 million, from ÂŁ11 million last year to ÂŁ14 million by the end of this year, and we announced in our previous trading update that we’d already secured ÂŁ2 million of that by April this year. I’m still confident with a bit of fair wind that we’ll achieve our targets by year end.

Q2: Can you just remind investors of what the company does and how it actually helps its customers?

A2: So, we provide an end to end omnichannel SaaS-based platform for retailers. We genuinely believe that through omnichannel excellence, retailers can drive sales and increase profits and compete more effectively against pure play online competitors. We believe we are having success in demonstrating that as most of our retailers are opening more stores.

At the heart of proposition is the idea that retailers can engage better with their customers if they turn their stores into omnichannel points of service, because in most national retailers, 85% of customers live within 15 minutes of their stores. So, that means they can offer same day home delivery, 30 minute click and collect, and easier points of returns, and of course better services through staff and stores. We also believe that the platform allows them to become marketplaces themselves in the same way that Amazon has done.

So, we are helping them enable this transformation to omnichannel excellence, whilst helping them reduce costs and increasing productivity with a minimum capital outlay.

Q3: Now, during the period, the Group continued to invest significant sums in product development. What does it mean and how would it add to the group?

A3: We look at every aspect of retail processes to see what we can do to either drive more sales or drive more profits for a retailer. Our goal is to sell better business outcomes so for example, the innovations we’re doing are focused on the following teams:

  • Greater personalisation and personal shopping services to existing customers through better CRM and mobile engagement
  • Aligning retailers to sell more to existing customers.
  • Allowing retailers to optimise stock so they can sell more without increasing stock investments
  • Allowing retailers to optimise pricing and promotions so they can maximize cash margin
  • Help retailers become marketplaces through better digital supply integration and that will enable them to increase sales.

We’ve just released a smart route application, which we believe will reduce the cost of home delivery as they dispatch from stores. We’re also investing in things like self-checkout technologies to improve in store efficiency.

So, those are some of the themes where a lot of our R&D investment in product development is going.

Q4: Now, although the macroeconomic predictions for the next 12 months are largely negative, but the Group’s technology is designed to help retailers weather that storm. What does the company have in place to help its customers during this kind of time?

A4: So, basically, every retailer is now focused on trying to drive more sales because they are all concerned that inflation, cost price increases, energy prices going up, are going to constrain consumer spending. So, what they’re trying to do is drive more sales, and in the short term, that means they need to focus on the needs of their existing customers.

Secondly, every retailer is under cost pressure so they have to decide their price positioning. They have to optimise pricing and decide how much they’re going to try and pass on to their customers and how much they’re not so they can retain sales.

Thirdly, every retailer has cash tied up in stock, so they have to decide how best to drive sales through and how to optimise that stock.

Retailers, in the next 12 months, have to look for quick wins and we have so many elements of our platform that helps retailers do that and so, as I said, our goals are to help retailers drive sales and drive for improvements in EBITDA by improving productivity across everything they do.

We see technology as a means to an end and the end is really clear in terms of what we need to help retailers achieve.

Q5: Just looking forward, what else can we expect to see from itim Group for the rest of the year?

A5: I think, fundamentally, staying true to our mission which means obviously continuing to do what we’ve done well over the last three years, in the way we service in supporter customers. Obviously, we’re focused on sales and trying to achieve about targets.

Ultimately, we are playing a long game and the long game, ultimately for companies like us, is all about product excellence in terms of the outcomes our platforms deliver for retailers. So, in that sense, it’s very much business as usual, we need to continue to stay focused on our principal mission and make sure we deliver to it.

Analyst Notes & Comments

itim group

itim Group results in line with WH Ireland recently adjusted forecasts

itim Group Plc (LON:ITIM)is a disruptive software-as-a-service (SaaS) platform that empowers traditional retailers with an Omni-channel solution, enabling them to effectively compete against online-only players. The company has recently released its full-year results for the period ending December 31, 2022. The reported revenues and earnings align with WH Ireland adjusted forecasts and demonstrate positive growth in Annual Recurring Revenue (ARR).

Although the conversion of contracts has been slower than anticipated during this period, itim Group’s revenue has increased by 4% compared to the previous year, reaching ÂŁ14.0m (FY21: ÂŁ13.5m). However, the company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) has decreased from ÂŁ2.2m in FY2021 to ÂŁ0.2m, and Earnings Per Share (EPS) has decreased from 3.75p to -2.0p. These declines can be attributed to wage cost inflation and investments in expanding the workforce to support future sales growth.

The ARR for the year has shown significant growth, increasing by 19% to ÂŁ13.2m (FY21: ÂŁ11.1m). Looking ahead, itim Group emphasizes its focus on cash management, reducing customer incentives, and relaunching their consultancy business. They also plan to introduce new applications to their platform. The company maintains a healthy cash balance of ÂŁ3.9m at year-end (FY21: ÂŁ6.2m).

Considering the slower contract conversion, we have previously adjusted our forecasts, and we maintain those unchanged at this time.

The modest revenue growth reflects the impact of investments made during the period. itim Group experienced delays in decision-making and project delivery by retailers due to ongoing economic uncertainty. Despite this, the company has managed to achieve a 19% increase in ARR, with recurring revenue now constituting 84% of total turnover. The reported total revenue of ÂŁ14.0m for FY22 aligns with our expectations. However, the significant increase in sales staff ahead of revenue growth plans, combined with wage cost inflation, has negatively affected profitability. The company’s EBITDA has decreased to ÂŁ0.2m, and EPS stands at -2.0p, down from 3.75p in FY2021. itim Group’s net cash position at the end of the year remains healthy at ÂŁ3.9m (FY21: ÂŁ6.2m).

itim Group is actively focusing on conserving cash and improving profitability. They are implementing strategies such as reducing customer incentives and relaunching their consultancy business. Additionally, the introduction of new products, including a payment hub, expands their retail offering and has the potential to increase revenues from new and existing customers.

In our view, while the retail market remains challenging, itim Group’s proprietary Omni-channel platform for store-based retailers is well-positioned to benefit from industry trends. Considering the current implied FY23 EV/Revenue multiple, which represents a more than 50% discount compared to the peer group average, we believe there is potential for the company’s shares to recover once the contract pipeline is successfully executed.

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