Itim confident despite swinging to pre-tax loss

(Sharecast News) - Itim Group reported a fall in annual revenue and a swing to a pre-tax loss for 2025 on Wednesday, although the retail software provider said recurring revenue remained resilient and annual recurring revenue continued to grow.

The AIM-traded software-as-a-service company, which provides technology to help store-based retailers optimise financial performance, said group revenue for the year ended 31 December fell 2% to £17.5m from £17.9m in 2024.

Booked recurring revenue edged up 0.7% to £13.5m, while recurring revenue represented 77% of total group revenue, up from 75% a year earlier.

Annual recurring revenue increased 9% to £14.2m from £13.0m.

Adjusted EBITDA fell to £1.7m from £2.5m, with the adjusted EBITDA margin narrowing to 10% from 14%.

The company reported a loss before tax of £0.5m, compared with a profit of £0.2m in 2024.

Adjusted loss per share was 0.47p, compared with adjusted earnings per share of 1.09p a year earlier, while basic loss per share was 0.81p, against 0.64p in 2024.

Closing cash balances stood at £2.6m, down from £3.8m.

Chief executive officer Ali Athar said 2025 had been "a year of resilience, investment and strategic progress" despite a challenging retail backdrop.

"Supported by our robust recurring revenue model, the Group continued to invest in its people, technology and international expansion, while also taking decisive action to reduce the annual cost base by over £1m," he said.

Athar said the company's Itim-UNIFY platform continued to provide retailers with a differentiated omni-channel solution aimed at reducing complexity, improving productivity and driving profitability.

He added that the group had accelerated its geographic diversification strategy during the year, broadening its addressable market and reducing reliance on UK retail spending cycles.

Itim also highlighted the launch of ItimAIQ, its new artificial intelligence platform for retailers.

"We believe AI will transform the sector and ItimAIQ enables retailers to harness these opportunities securely while maintaining control of their customer relationships and data," Athar said.

"With encouraging sales opportunities, continued innovation and growing interest in AI-led solutions, we enter 2026 with renewed confidence."

At 1249 BST, shares in Itim Group were up 4.17% at 25p.

Reporting by Josh White for Sharecast.com.

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