LONDON (Alliance News) - IMImobile PLC on Tuesday said it has good visibility on future performance, thanks to a strong pipeline and high mix of recurring revenue, after it swung to profit in the year to the end of March.
The provider of cloud software posted pretax profit of GBP4.2 million for the year ended March 31, compared to the GBP2.3 million loss recorded a year earlier, after revenue rose 26% to GBP61.6 million, from GBP48.9 million.
In Europe and the Americas, gross profit rose to GBP19.9 million from GBP16.4 million, on the back of a "significant contract wins with a mobile operator, an electronics retailer and a gaming business as well as additional business from existing financial services clients".
Meanwhile, in the Middle East and Africa, gross profit was up at GBP11.4 million, compared to the GBP8.6 million posted a year earlier driven by an increase of 58% in its recurring revenue from its existing and new contracts with mobile operators in the region.
IMImobile said during the year, it made new major client wins in all its regions and renewed all major contracts falling due during the year, noting that structural growth trends remain in place from which it looks set to benefit. In particular, IMImobile said it will continue to benefit from the movement towards the use of cloud software and infrastructure for enhancing customer experience.
No dividend was offered for the year, in line with a year earlier, but IMImobile said "in the absence of significant acquisition opportunities and in accordance with our own strict return parameters, the board will review all the options available to it, including a return of capital".
The company said it started its current financial year well, with a number of opportunities for growth across all regions and business groups.
"As a result of our stable client relationships, pipeline of new deployments and high mix of recurring, repeating and transactional revenues we have good visibility of future performance. We will continue to invest in more sales and marketing activities and product development to establish a leading position in growth markets, and we are confident of our prospects for the year ahead," IMImobile said in a statement.
Shares in IMImobile were up 2.8% at 174.70 pence on Tuesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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