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In line with the trading update issued at the end of February, retail SaaS specialist, itim Group plc delivered a materially better than previously expected performance in FY24. Company revenue for the twelve months ended 31st December increased by 11% yoy to £17.9m and the period saw the business return to profitability. itim’s adjusted EBITDA rose by 260% yoy to convert the £0.9m loss in 2023 into a £0.2m profit last year. This improved financial performance helped to lift the year-end cash balance of £3.8m (FY23: £1.9m).
There were a number of notable sales successes during FY24 for the company’s Unify omni-channel retail platform, users of which include Waitrose & Partners, Holland & Barrett and Argos. itim signed a five-year multi-million-pound contract with Assaí Atacadista, Brazil's largest wholesaler, and the company secured a five-year contract extension with toy retailer The Entertainer. The SaaS provider also renewed its long-standing partnership with Majestic Wine, the UK's largest specialist wine retailer, for another five years.
These wins did not, however, drive any increase in itim’s annual recurring revenue. This metric slipped by 1.5% yoy to £13m. The improvement in the company’s FY24 top line came instead from a 34% jump in project related turnover which, while welcome in the immediate term, carries a degree of additional risk going forward in a sector facing growing headwinds. itim also remains heavily dependent on two customers which last year accounted for c.35% of total revenue (FY23: 33%).
Despite the challenges in the retail sector both domestically, where itim generates 70% of its sales, and globally, the company remains upbeat on its longer-term prospects. The pipeline of new customers is reported as strong and itim believes that it is well positioned to benefit from the pressing needs in its target vertical to drive significant, rapid improvements in productivity. Investors appear less confident. At the time of writing, itim’s share price was down almost 9% on latest nights close post the publication of the FY24 results.
Posted by: Duncan Aitchison at 08:34
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retail