itim Group plc (LON:ITIM), a SaaS-based technology company that enables store-based retailers to optimise their businesses to improve financial performance, has announced its unaudited interim results for the six months ended 30 June 2025.
Financial Highlights
| · | Group revenue of £8.0m (HY24: £8.8m; FY24: £17.9m), with booked recurring revenue of £6.6m (HY24: £6.6m; FY24: £13.4m), representing 83% of Group revenue (HY24: 75%; FY24: 75%) |
| · | Annual recurring revenue (“ARR”)¹ of £13.3m (HY24: £13.2m; FY24: £13.0m), reflecting annual growth of 1% (HY24: 0%; FY24: -1%) |
| · | Adjusted EBITDA² of £0.4m (HY24: £1.2m; FY24: £2.5m), with an adjusted EBITDA margin of 5% (HY24: 13%; FY24: 14%) |
| · | (Loss)/profit before tax of £(0.7)m (HY24: £(0.1)m; FY24: £0.2m) |
| · | Adjusted earnings per share³ of (1.6)p (HY24: 0.18p; FY24: 1.09p); basic earnings per share of (1.6)p (HY24: (0.27)p; FY24: 0.64p) |
| · | Net cash of £1.8m (HY24: £3m; FY24: £3.8m) |
Full year numbers quoted above are audited and half year numbers quoted above are unaudited
1. Annual recurring revenue
2. EBITDA has been adjusted to exclude share-based payment charges, exceptional items, along with depreciation, amortisation, interest and tax from the measure of profit.
3. The profit measure has been adjusted to exclude exceptional items and share option charge
Ali Athar, CEO of itim, commented: “I am pleased to report a resilient first half performance with good recurring revenue and positive EBITDA In a tough retail climate marked by rising costs and fragile consumer confidence. While project cycles have lengthened, we are seeing continued interest in our solutions as retailers seek smarter ways to drive efficiency and margin. Our upcoming AI platform, built on Agentic architecture, will further strengthen our offering, helping clients unlock value across sales, productivity and stock. As investment appetite returns, we are confident our pipeline will convert, reinforcing our role as a trusted partner in retail transformation.”
CEO Statement
The Board is pleased to present the Group’s half year results for 2025 in which the business reports good annual recurring revenue and a positive EBITDA.
The first six months of the year have been influenced by the cost pressures currently affecting the retail sector. These pressures have inevitably affected the pace of activity within our business, with a number of projects being pushed back, particularly those involving substantial investment commitments. Whilst the Group has not lost ongoing business, delays in decision-making have occurred and naturally impacted performance. At the same time, it is important to note that the interim results for 2024 included a significant contribution from large-scale project revenues generated through The Entertainers partnership with Tesco.
It is widely acknowledged that UK retailers are battling with what has been described as a “perfect storm” of cost pressures. These include an increasing burden of taxation and regulatory levies, continued upward pressure on wage and employment costs, and the broader impact of inflationary forces. Collectively, these factors are eroding margins, suppressing profitability, and forcing retailers to reassess both pricing strategies and investment priorities.
Consumer confidence, meanwhile, remains fragile. Persistent inflation, rising household debt and ongoing concerns over job security, have constrained discretionary spending. Retailers, faced with the difficult balance of managing higher costs while maintaining competitiveness, have passed some of these pressures onto consumers through increased pricing. As a result, demand dynamics on the high street remain subdued, and the outlook for the crucial Christmas trading period is uncertain. In turn, these uncertainties have led many retailers to defer or scale back investment in longer-term transformation programmes.
Within this difficult trading environment, itim’s business model is considered an attractive proposition providing an effective way for retailers to mitigate rising costs and invest in operational efficiency and technology. Areas such as process automation, digital transformation, and supply chain optimisation are increasingly being recognised as essential levers for long-term resilience. Encouragingly, the Group is seeing evidence of retailers adopting these strategies offered by our products and services.
The current pipeline of new opportunities is encouraging and reflects both the relevance of itim’s solutions and the confidence in its ability to deliver value. That said, given the current macro and retail environments, projects are taking longer to close, and some have been pushed back into later periods. In the short term, the Group remains disciplined in managing costs and has taken appropriate action to minimise the impact on profitability while protecting its capacity to deliver ensuring that the Group remains well positioned to respond to new levels of interest.
The Group is continuing its focus on machine learning and the use of advanced mathematics in building systems. This year, itim will be launching its AI platform based on an Agentic AI architecture, where a number of of ‘agents’ will sit on top of our UNIFY platform to help retailers identify opportunities to optimise sales, productivity, margin and stock.
In conclusion, while the present trading environment remains challenging the Group is experiencing increased levels of interest for its services. The Board is confident in its positioning within the marketplace with the need for retail technology that can drive profitability and business transformation being greater than ever. The group’s proposition is highly aligned to the needs of retailers facing cost pressures, reinforcing its competitive position in the marketplace. itim is currently seeing its largest pipeline of opportunities in its history, and as investment cycles recover, the board is confident of converting a number of these into increased revenues, albeit with some uncertainty around the exact timing.
