IMO.L Regulatory News (IMO)

IMIMOBILE PLC

("IMImobile" or the "Group" or the "Company")

Trading Update

Strong results, continued earnings growth, good cash generation and strategic progress

IMImobile (AIM: IMO), a leading communications software and solutions provider, is pleased to announce the following update ahead of its preliminary results for the year ended 31 March 2019.

Highlights

· Revenue ahead of market expectations, with EBITDA marginally ahead.

· Revenue for the full year is expected to be c. £142m (2018: £111.4m) an increase of 28% of which c. 18% is organic.

· Gross profit is expected to be c. £62m (2018: £50.7m) an increase of over 20%, up from 18% reported at the half year.

o Overall, organic gross profit growth is expected to be c. 7%.

o Strong gross profit growth in Europe and Americas of over 45% (at least 15% organic) with the region contributing over 70% of Group gross profit.

o Both the Asia-Pacific (APAC) region and enterprise business in South Africa delivered strong organic gross profit growth of more than 12% and 20% respectively on a constant currency basis.

o As reported at the interims, the Company experienced headwinds with one specific customer in the Middle East and Africa (MEA) region. The underlying organic growth in Group gross profit excluding this impact was c.13%.

· Adjusted EBITDA for the full year is expected to be over £17.8m (2018: £13.4m) an increase of over 30% year on year.

· Cash conversion at c. 90% with net debt of £7.9m at 31 March 2019 (2018: net cash of £4.3m). This is after completion of the Impact Mobile acquisition during the year, acquired for cash of £16m.

· The number of clients that provide more than £500k p.a. revenue increased to 40 (33 in FY18) and clients with revenues between £100k p.a. and £500k p.a. increased to 89 from 43 in the prior year.

· The Company has enhanced its Enterprise cPaaS (communications platform as a service) offering with the recent launch of new communication channels such as WhatsApp for Business and Apple Business Chat.

· Considerable commercial and technical progress made with partners including BT, KCOM, Salesforce and NICE inContact.

· Increasing focus on North American market with good progress made through acquisition of Impact Mobile, which is performing as expected, and additional senior management hires and investment.

Jay Patel, Group Chief Executive of IMImobile, commented: "We are pleased with the strong trading results and momentum we have in the business. This reflects the market dynamics shifting towards more automation and the use of digital channels for delivering better customer experiences. We have a great modular set of consumer engagement products and have invested significantly in IMIconnect, our Enterprise cPaaS offering, that we believe, in its category, is one of the best globally.

We have delivered strong growth in gross profit of over 20% and EBITDA of over 30% with high levels of cash generation and enhanced operating leverage whilst making strategic progress with several key partners and in new geographies.

We enter the new trading year with strong momentum and are confident in delivering continued organic growth across all parts of the business."

For further information please contact:

About IMImobile PLC

IMImobile is a communications software provider whose solutions enable enterprises to automate digital customer communications and interactions to improve customer experience and reduce operating costs.

IMImobile's enterprise cPaaS offering manages over 42 billion messages a year across the world. Organisations that trust us to deliver smarter digital customer engagement include Hermes, Centrica, O2, EE, BT, Capitec, Pizza Hut, Vodafone, MTN, three of the major retail banks in the UK and public-sector organisations globally.

IMImobile is headquartered in London with offices across the UK, Hyderabad, Toronto, Little Rock, Dubai and Johannesburg and has over 1,100 employees worldwide. IMImobile is quoted on the London Stock Exchange's AIM market with the TIDM code IMO.

Cautionary statement

This announcement contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is confident, or other words of similar meaning. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and IMImobile's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.

There are a number of factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are; increased competition, the loss of or damage to one or more key customer relationships, the outcome of business or industry restructuring, changes in economic conditions, currency fluctuations, changes in laws, regulations or regulatory policies, developments in legal or public policy doctrines, technological developments, the failure to retain key management, or the key timing and success of future acquisition opportunities or major investment projects.

IMImobile undertakes no obligation to revise or update any forward-looking statement contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise, save as required by law and regulations.