itim Group returned to profit in the first half of 2026 as revenue increased and profitability improved, with the retail technology company also reporting higher recurring revenue and stronger operating cash flow.
Revenue for the six months to 30 June 2026 rose 7.5% to £8.6m, compared with £8.0m in the same period last year. Booked recurring revenue increased to £7.4m from £6.6m, accounting for 86% of group revenue compared with 83% a year earlier. Annual recurring revenue was £13.6m, up 2% year on year.
Profitability improved more significantly. Adjusted EBITDA increased to £1.3m from £0.4m in the first half of 2025, taking the adjusted EBITDA margin to 15% from 5%. itim also reported a profit before tax of £0.2m, compared with a £0.7m loss in the prior-year period. Profit after tax was £0.34m, against a £0.5m loss previously.
Operating cash flow also moved higher, reaching £2.1m compared with an outflow of £0.9m in the first half of 2025. Net cash at the end of June stood at £3.1m, up from £1.8m a year earlier and £2.6m at the end of December 2025.
The improved results came despite continued pressure across the UK retail sector. itim said retailers remained affected by higher employment costs, subdued economic growth and pressure on consumer spending, which continued to influence investment decisions among its customer base.
The company said the performance reflected the stability of its recurring revenue base, while its South American operations delivered a stronger performance during the period. The group also secured a new customer during the first half, helping to offset the impact of a large UK customer entering administration.
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 to improve financial performance and compete more effectively with the “Amazons”.
