# itim Group reports 15% revenue growth for FY2023 with EBITDA exceeding expectations

- Link: https://www.directorstalkinterviews.com/itim-group-reports-15-revenue-growth-for-fy2023-with-ebitda-exceeding-expectations/4121145047
- Published: 2024-02-29T07:08:43+00:00
- Author: Amilia Stone

**[itim Group plc](https://www.directorstalkinterviews.com/company/itim-group-plc/itim.l)**(
[LON:ITIM](https://www.directorstalkinterviews.com/company/itim-group-plc/itim.l)),
a SaaS based technology company that enables store-based retailers to optimise their
businesses to improve financial performance, is pleased to announce an unaudited
trading update for the financial year ended 31 December 2023, ahead of the publication
of the Company’s annual results which are anticipated to be released in May 2024.

**Highlights**

·    Revenues increased 15% at £16.1m* (2022: £14.0m (audited)) in line with current
market expectations.

·    Annual recurring revenue (“ARR”) remained constant at approximately £13.2m*(
2022: £13.2m (audited)) representing 82% of revenue as the Group focused on EBITDA
and cash generation.

·    EBITDA for the year is expected to be £0.68m* (2022: £0.21m (audited)) ahead
of market expectation of £0.3m.

·    Total loss before tax for the year is also anticipated to be ahead of market
expectations.

·    Post period end, completion of a significant multi-million pound contract with
Quiz Clothing to implement the Groups first fashion customer on the end-to-end retail
platform.

·    As expected, the Group ended the year with cash balances of £1.9m* (2022: £
3.9m (audited)) with no outstanding loans.

In the year ended 31 December 2023, the Group achieved revenue growth of 15% increasing
from £14.0m to £16.1m* as the business pivoted from focussing on ARR growth to cash
generation with service revenues increasing by 64% and EBITDA increasing by 126%.

As the culmination of the two-year investment programme approaches, itim is pleased
to present an update on the progress as it presents an enhanced product offering,
strategically positioning itim for sustained success within the dynamic retail landscape.

Significant improvements have been made across the product suite. A notable strategic
milestone includes the integration of fashion into the core Retail Suite, catalysed
by the successful Quiz Clothing contract win, which went live as announced on the
27^(th) February 2024. Furthermore, targeted investments in the Profimetrics platform,
Chameleon store systems, Tradeledger for supplier collaboration, and e-commerce 
have collectively enhanced the capabilities of itim’s offering. The Company’s transformative
efforts have led to the creation of a unified platform, named ‘UNIFY.’ This rebranding
not only consolidates our products but also better communicates the essence of our
Unified Retailing platform. The positive feedback from customers demonstrates the
real impact of these improvements, strengthening confidence in itim’s go-to-market
strategy.

In alignment with prevailing economic conditions, itim is currently in the process
of “right sizing” its business. This strategic pivot involves a shift away from ‘
free’ implementation services towards a continual focus on increasing services revenues
and EBITDA. The emphasis on demonstrating the real ‘benefits’ of UNIFY through consulting
underscores the Company’s commitment to delivering tangible retail value to the 
retail community.

Over the past eight years, itim has demonstrated a compound average growth rate 
of 11%. Despite challenges posed by the recent turbulent macro-economic environment
over the last three years, the Company has navigated these obstacles with resilience.
With a solid foundation laid by the IPO funding, a further enhancement in the growth
rate is anticipated when global economic conditions improve.

_* Unaudited_

> **Ali Athar, itim Group Chief Executive Officer, commented,** “I am pleased to
> present a robust set of numbers for the year with revenue in line and EBITDA ahead
> of market expectations demonstrating itim’s commitment to improving our strategic
> initiatives and positioning the Company for sustained growth and success. We are
> delighted to announce the launch of UNIFY, our unified platform which not only
> consolidates our product offerings but also provides a seamless and enhanced experience
> in the retail landscape. I would like to express our gratitude for stakeholders
> for their continued trust and support. We are encouraged by recent trading and
> a significant pipeline of new opportunities which enables the Board to view the
> future with renewed confidence and optimism.”

Share on: