Imaginatik wins two new customers, secures loan

AIM-listed Imaginatik has scored two further multi-year contracts with new customers, increasing its revenue visibility. The business services provider said one of the new customers is one of the most highly rated US mutual insurance companies and the other is a major European airline.It said the contract wins bring the total number of new customers secured in the second half of the year to eight, compared to seven in the second half of the prior year. Executive Chairman Matt Cooper said it had resulted in "a strong end" to the financial year. He added: "Imaginatik has closed the year with good momentum, a sales pipeline that is significantly larger than that of the prior year and an increased level of deferred revenue to be recognised in future periods."The contract wins have meant that the company's total bookings for the year ended March 31st are expected to show a solid increase, approximately £3.4m compared to £2.8m in the previous year. Recognised revenue for the year is expected to be broadly flat compared to the prior year at approximately £2.9m, with an increased loss of approximately £1.45m (2013: £1.15m) due to the increased investment in sales and consultancy personnel. Deferred revenue is expected to have increased to approximately £2.9m (2013: £2.4m). The group also said that its strengthed sales team would have a positive impact in the current financial year and beyond.Imaginatik said that in order to fund its current working capital requirements Cooper had loaned it £0.07m, and agreed to loan up to a further £0.1m on an interest free basis with no fixed-term. "The directors are aware of the ongoing requirement for sufficient working capital and are currently in discussions with institutional and other investors regarding the future funding arrangements of the company," a statement from the company read. At the year-end its cash balance totalled £0.05m (2013: £0.136m). NR