Companies are racing to engage consumers on their smartphones and tablets as they become more and more reliant on these devices. IMImobile (IMO) provides companies with software tools to meet that growing need. Trading is good: organic sales grew by a tenth in the reported period, propelling adjusted cash profit up 17 per cent to £10.7m.
IMImobile's cloud-based products allow clients to offer content and interact with customers via text, email, and social media channels. Organic gross profit rose 9 per cent in Europe and the Americas as the group signed up multiple new customers and renewed a multi-year contract with its biggest customer in the region, a high-street bank. Strong demand from mobile operators fuelled even higher growth in the Middle East and Africa and underpinned a rally in India following a market downturn.
The group acquired peer Archer Digital, deepening its foothold in Africa and expanding its customer base. It also rolled out business messaging service TextLocal in India, attracting over 1,500 paying users in less than six months. Broker Investec raised its forecasts and now expects adjusted pre-tax profit of £9.4m this financial year, giving EPS of 11.3p (from £8.5m and 10.4p in FY2016).
| IMIMOBILE (IMO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 174p | MARKET VALUE: | £105m | |
| TOUCH: | 173-175p | 12-MONTH HIGH: | 174p | LOW: 136p |
| DIVIDEND YIELD: | nil | PE RATIO: | 25 | |
| NET ASSET VALUE: | 58p* | NET CASH: | £15m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 38.7 | 2.6 | 17.6 | na |
| 2013 | 38.5 | 2.7 | 19.9 | na |
| 2014 | 43.4 | 5.3 | -7.6 | na |
| 2015† | 48.9 | -2.3 | -13.5 | nil |
| 2016 | 61.6 | 4.2 | 7.1 | nil |
| % change | +26 | - | - | - |
*Includes intangible assets of £24.1m, or 40p a share †IMImobile listed its shares in June 2014 | ||||
