There is something bittersweet about full-year results from Imagination Technologies (IMG). In the year to April 2017 the specialist microchip designer swung back into a pre-tax profit position and decreased its net debt. And yet the future of the company has never been more uncertain, following Apple's decision to stop using Imagination's chips in future versions of the iPhone.
The group's major restructuring plan - undertaken after a dismal performance in the 2016 financial year - is complete. It helped extract £27.5m of costs in the period. Imagination also successfully sold or closed all of its non-core, cash-consuming businesses. Excluding these divisions, adjusted operating profit increased from £10.5m to £29.2m. Continuing operations also generated £24.7m of cash, more than offsetting the £13.7m cash outflow from discontinued businesses.
But the group remains in a net loss position following an £18.5m tax charge. This unusually high rate is a side-effect of the group's ongoing dispute with Apple - Imagination has had to write off deferred tax assets, which can no longer be recognised due to uncertainty surrounding future profits.
IMAGINATION TECHNOLOGIES (IMG) | ||||
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ORD PRICE: | 154p | MARKET VALUE: | £438m | |
TOUCH: | 154-155p | 12-MONTH HIGH / LOW: | 298p | 76p |
DIVIDEND YIELD: | nil | PE RATIO: | na | |
NET ASSET VALUE: | 42p* | NET DEBT: | 24% |
Year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2013 | 151 | 12.2 | 2.4 | nil |
2014 | 171 | -0.3 | 0.3 | nil |
2015 | 157 | 2.2 | -4.9 | nil |
2016 | 122 | -29.4 | -29.8 | nil |
2017 | 145 | 2.4 | -10.1 | nil |
% change | +19 | - | - | - |
Ex-div: na Payment: na *Includes intangible assets of £87m, or 31p a share |