(Sharecast News) - Itim Group reported a robust full-year financial performance in a trading update on Thursday, surpassing market expectations.
The AIM-traded retailer-focussed software-as-a-service provider reported a 15% increase in revenue to £16.1m, compared to £14m in the prior year.
Annual recurring revenue remained steady at around £13.2m, representing 82% of total revenue, as the company shifted its focus towards enhancing EBITDA and cash generation.
Notably, EBITDA for the year was anticipated to reach £0.68m, exceeding market expectations of £0.3m.
The company also anticipated its total loss before tax for the year to outperform market forecasts.
A significant highlight after the period ended included the completion of a substantial multi million-pound contract with Quiz Clothing, marking the group's entry into the fashion retail sector.
Furthermore, Itim ended the year with cash balances of £1.9m and no outstanding loans.
During 2023, Itim said it saw notable improvements across its product suite, culminating in the integration of fashion into its core retail suite.
Additionally, investments in platforms like Profimetrics, Chameleon store systems, Tradeledger, and e-commerce had fortified Itim's capabilities, leading to the creation of the unified platform, 'UNIFY.'
In response to prevailing economic conditions, Itim said it was strategically "right-sizing" its business, transitioning away from free implementation services towards bolstering service revenues and EBITDA.
The shift underscored the company's dedication to delivering tangible retail value to its clientele.
"I am pleased to present a robust set of numbers for the year with revenue in line and EBITDA ahead of market expectations demonstrating itim's commitment to improving our strategic initiatives and positioning the company for sustained growth and success," said chief executive officer Ali Athar.
"We are delighted to announce the launch of UNIFY, our unified platform which not only consolidates our product offerings but also provides a seamless and enhanced experience in the retail landscape.
"We are encouraged by recent trading and a significant pipeline of new opportunities which enables the board to view the future with renewed confidence and optimism."
At 0922 GMT, shares in Itim Group were up 3.81% at 31.35p.
Reporting by Josh White for Sharecast.com.
Itim Grou (ITIM)