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IMTK Imaginatik

0.945
0.00 (0.00%)
26 Apr 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Imaginatik LSE:IMTK London Ordinary Share GB00BFMDJC60 ORD 0.002P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0.945 0.92 0.97 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Imaginatik PLC Half-year Report (0225R)

06/12/2016 7:00am

UK Regulatory


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RNS Number : 0225R

Imaginatik PLC

06 December 2016

Imaginatik plc

("Imaginatik" or "the Company")

Interim Results

Imaginatik plc (AIM: IMTK.L), the innovation company, announces its unaudited results for the six months ended 30 September 2016.

Highlights

   -- Considerably reduced loss after tax of GBP0.26m (2015: GBP0.41m), despite impact of adverse currency movements 
 
   -- Recognised revenue steady at GBP1.84m (2015: GBP1.96m) 
 
          -- Deferred revenue increased 16% to GBP3.35m at 30 September 2016 (30 September 2015: GBP2.88m) 
 
   -- Overall bookings of GBP1.95m (2015: GBP2.2m) 
 
   -- Good level of customer renewals and signing of four new customers 
 
   -- Initiation of partner programme in US and Europe, resulting in potential significant expansion of market reach 
 
   -- Key Senior Management appointment in the US to support technology expansion 
 
   -- Successfully completed a Placing and Open Offer in June 2016, raising GBP1.67m gross, to enable further 
      investment in the business 

* At constant currency, US$ to GBP exchange rate of 1.325.

Matt Cooper, Non-Executive Chairman, commented: "Imaginatik delivered a steady first half of the year, substantially reducing trading losses while once again securing a good level of customer renewals and new customer wins. We continue to see evidence that our acknowledged leadership of the innovation industry is resulting in growing interest in our business - both from a partnering and customer perspective.

"We have entered the second half of the year with a healthy pipeline of new business opportunities and have closed three new clients in the start of the second half of the year. Having built a unique offering within the international innovation marketplace we are confident we have the foundations in place for future success."

For further information please contact:

 
 Imaginatik plc                       Tel: 01329 243 
                                       243 
 Matt Cooper Non-Executive Chairman 
  Ralph Welborn, CEO 
  Shawn Taylor, CFO 
 
 finnCap Ltd                          Tel: 020 7220 
                                       0500 
 Jonny Franklin-Adams/Giles Rolls 
 
 Alma PR                              Tel: 020 8004 
                                       4218 
 Hilary Buchanan/ Caroline Forde 
 

About Imaginatik

Imaginatik provides a range of Innovation solutions comprised of consultancy, enterprise software and program management to deliver innovation results to companies such as PwC, Novartis, The Chubb Group of Insurance Companies, Exxon Mobil, Altria, Shell, Mayo Clinic, Goodyear, the Yorkshire Building Society, Caterpillar and Cargill. Few companies possess the internal capability to consistently generate fresh ideas, identify those worth pursuing and reliably transform them into real, value-enhancing assets. Imaginatik's mission is to help these companies build sustainable innovation competencies.

Imaginatik is a public company whose shares are traded on the AIM market of the London Stock Exchange (LSE: IMTK.L) with offices in Boston, MA, and Fareham, UK. For more information visit www.imaginatik.com.

Introduction

Imaginatik delivered a steady first half of the year, substantially reducing trading losses while once again securing a good level of customer renewals and new customer wins. The loss after tax reduced to GBP0.26m (2015: GBP0.41m). Approximately half of the loss after tax is attributable to adverse foreign exchange movements arising as a result of the strong US dollar. Recognised revenue was GBP1.84m for the period (2015: GBP1.96m) with overall bookings of GBP1.95m (2015: GBP2.2m).

Our unique ability to provide consultancy services but also deliver programmes through our software continues to be a powerful differentiator for us in the innovation market. We continue to implement innovation programmes with some of the world's leading brands across a broad range of sectors, generating tangible results for our customers.

Four new customers were added in the half, including a global supplier of railroad and transit system products and services, a US-based global healthcare company, a global medical company specialising in eye care, and a provider of engineering, consulting and project management services for infrastructure projects. Each of these new global customers provides an opportunity for future revenue growth.

The Company has now begun the investment of the funds raised via the Institutional Placing and Open Offer completed in June 2016, investing in our sales and marketing resources and technology suite to provide an ever more comprehensive platform for future growth.

We have also begun building an extended partnership programme in both the US and Europe, which we believe has the potential to significantly expand our market reach. We have been encouraged by the calibre of partners approaching us, which we believe is an indication of the growing market awareness of the need for innovation and of our leading position within the innovation market. We will update investors further once these partnership agreements have been concluded.

Financial Review

Total recognised revenue for the six months to 30 September 2016 was GBP1.84m (2015: GBP1.96m). Revenue recognised from the US in the period accounted for approximately 68% of the total (2015: 86%) with the balance derived from 'Rest of World', primarily the European market. Revenues recognised from consultancy services fell from approximately 23% in 2015 to 19% in the period under review, with the remainder derived from Technology.

Gross bookings in the period were slightly lower at GBP1.95m (2015: GBP2.2m at constant currency). In the period under review, 41% of bookings were from up-selling our software and consultancy services into existing customers, 9% from selling into new customers, and 50% from renewals business (2015: 50%: 4%: 46% respectively).

Deferred revenue increased to GBP3.35m at 30 September 2016 (30 September 2015: GBP2.88m) a 16% increase year on year. Of the 14 contracts that came up for renewal, 10 were successfully secured on annual or multi year extensions, with four small clients choosing either not to renew or deferring that decision pending internal restructuring. These four clients amounted to less than GBP0.1m in total revenues. Of the renewals secured, most were contracted at the same levels or higher than the 2015 value. (2015: 14 secured out of 17 possible renewals).

We have approximately 45% of our customer base now on multi-year contracts (2015: 52%) with a further 16 clients set for renewal in our second half. We now have 45 clients either on multi-year contracts or currently carrying out consultancy engagements (2015: 44).

We secured four new customers in the period (2015: 3), two of which were added on an annual contract (2015: 0) and two on consulting engagements (2015: 3). The annualised value of our renewals stood at GBP3.24m at period end (2015: GBP3.17m at constant currency), and we look forward to growing this further as we progress through the second half of the year.

Capitalised internal development costs amounted to GBP0.16m (2015: GBP0.14m) as we continue to invest in building out our suite of technology offerings, including an enhanced mobile tool and further decision-making analytic tools.

We have been successful in securing an R&D tax credit from HMRC amounting to GBP0.21m (2015: GBP0.16m), reflecting the ongoing pioneering nature of certain elements of our R&D efforts in building out our software platform.

Administrative expenses decreased to GBP2.23m (2015: GBP2.37m), reflecting the ongoing focus within the Company on containing costs across the business. This factor, combined with the additional R&D tax credit generated, relative to 2015, has resulted in a substantially reduced trading loss, this is in spite of marginally lower revenues and a lower US$ exchange rate for the last few months of the period.

The loss after tax on ordinary activities for the period decreased considerably compared to the prior year to GBP0.26m (2015: GBP0.41m, 2014: GBP0.70m). The loss includes GBP0.11m of foreign exchange losses, arising from the revaluation of $US denominated deferred revenue balances offset to some extent by the revaluation of $US denominated receivables.

Cash outflows from operating activities showed an increase to GBP1.2m (2015: GBP0.56m), largely as a function of the increase in trade debtors towards the period end, following a series of large contract renewals in the final weeks of the period. Resulting cash balances at 30 September 2016 were GBP0.19m (30 September 2015: GBP0.04m). The cash position has improved post period end, increasing to GBP0.4m at 5 December 2016, as a result of a proportion of the trade receivables having been received by the Company with additional funds due imminently.

In June 2016, the Company raised GBP1.58m gross via a Placing and a further GBP0.09m via an Open Offer to shareholders. These funds are being used to add additional sales and marketing headcount, to increase the marketing spend to build the Company's brand in the marketplace, to continue to build new technology capabilities to capture growing market demand.

Operational Review

Sales and Marketing

Marketing efforts during the period have focused on expanding our digital footprint. Changes to our website's homepage are a first-step toward a full re-design which is expected to be launched in early 2017. New email marketing, digital advertising, and content marketing programs have generated a substantially higher base of website visitors and as a result more inbound leads. Both Sales and Marketing have added incremental headcount in the period, allowing us to expand and sustain our activities in these areas.

During the period, we launched a Client Community portal for our customers, where they can learn from each other and network with their peers at other companies. The online community portal has been complemented by a clients-only webinars program. These are facilities that our client community finds extremely valuable. We believe these efforts will further strengthen our retention rates and at the same time generate good upsell opportunities.

Partnership programme

In order to create new sales channel leverage, our partnerships programme has been expanded and systematised, with the creation of a full-time Business Development role focused on developing a range of channel partners. Several important market-access and go-to-market partnerships are in advanced development in both the US and Europe.

Consultancy

We are pleased to report continued progress in the consulting division, including successfully growing our footprint with several existing customers and expanding the range of our consultancy engagements.

Examples of customer engagements successfully delivered in the first half of the year include:

A Global Nutrition company

In the face of strong competition within the highly regulated healthcare market the client decided they needed to reshape their innovation portfolio of opportunities in order to address the new market challenges ahead of them, engaging with Imaginatik to help them do so. With a superior product and a strong science-based positioning they nevertheless believed that that was not sufficient to guarantee future success. The client's objective was to identify a range of product innovation concepts for their EMEA markets, and once identified to take the most promising forward.

In a series of workshops Imaginatik led the cross-functional, global team through a series of Breakthrough Ideation experiences to target this critical issue. The team began by sharing overviews on critical topics such as the latest scientific developments, competitive threats and opportunities, consumer insights, industry trends and new regulation considerations, all of which helped build the foundation for strong breakthrough ideas. Imaginatik consultants helped elevate client thinking through a myriad of provocative exercises and highly creative stimuli that included innovations in different industries, biomimicry examples - looking at naturally occurring innovations within nature, interesting consumer trends and unconventional startups. After identifying a large range of interesting ideas Imaginatik took the participants through a rigorous process of combination, clustering and prioritising ideas that culminated with the top concepts being identified. The results of this work were entered in Imaginatik's Innovation Central platform for statistical comparison using its proprietary Head-to-Head review tool.

The final outcome of this work was a series of fully built, high-impact concepts ranging from packaging innovation all the way through to potential new product formulations. The client was provided with a clear path forward together with executive alignment and set for rapid implementation.

A European food services and facilities management company

The client is one of the largest providers of food and facilities management in the world, with 420,000 employees; in excess of revenues of EUR15.3bn and a global clientele operating in a dispersed and complex ecosystem across 80 countries.

Imaginatik began its engagement with the client in early 2016, under an initial three year contract. During this first year, and with assistance from Imaginatik consultants, the client focused on setting up a small team with a remit to establish the ideation platform internally, generate interest internally and to foster innovation management expertise within the client in the most visible areas. During 2016 the client's platform usage grew very quickly, with numerous high visibility events being run, with activity levels growing substantially as their competency developed.

As the client moved further into the innovation programme, we have helped the client expand the technology into seven different languages, supporting all major emerging markets as well as supporting new regulatory compliance requirements that have emerged. Imaginatik has now replaced other platform competitors in three South American geographies of the client's operations. A multi-geography mobile support product for the Imaginatik innovation platform for staff has subsequently been launched, to enable immediate capture of customer feedback and access global best practice guidance.

The next phase of development will see the client and Imaginatik piloting open innovation with some of the client's major customers across the globe. In addition, the client is planning to add a further 20 additional languages over the next two years.

Technology

Expansion of our technology platform, Innovation Central, continues to be a key focus for the Company. We are delighted to have welcomed in recent months a key Senior Management hire in David Boghossian. David was previously Co-founder and CEO of PowerSteering Software, the cloud-based project portfolio management software business and has been a long-term Growth and Innovation Adviser. He brings considerable innovation and technology experience and will play an important role in further developing our product portfolio, covering the

combination of   technology and consulting. 

We continue to develop our user interface of Innovation Central to ensure that our technology is intuitive and easy to use. We launched a new version of our mobile offering this month, providing easy access to Innovation Central functionality for users on iOS and Android devices. We are also continuing to expand our Innovation Analytics capabilities focusing on managing networks of ideas and comments at scale, measuring diversity of thought in innovation programmes, and providing advice to innovation leaders about the maturity of challenges. Our progress in Innovation Analytics helps innovation leaders drive their innovation programmes, assisting them to make smarter, evidence-based decisions.

Outlook

The Company has entered the second half of the year with a healthy pipeline of new business opportunities and has closed three new clients in the start of the second half of the year. Having built a unique offering within the international innovation marketplace we are confident we have the foundations in place for future success.

Condensed Unaudited Consolidated Interim Statement of Comprehensive Income

For the six months ended 30 September 2016

 
 
                                     Unaudited 6 months to 30    Unaudited 6 months to 30 
                                                         Sept                        Sept     Audited year to 31 March 
                                                         2016                        2015                         2016 
                             Note                     GBP'000                     GBP'000                      GBP'000 
 
Revenue                       5                         1,836                       1,960                        3,893 
 
Cost of sales                                            (92)                       (131)                        (232) 
 
Gross profit                                            1,744                       1,829                        3,661 
                                   --------------------------  --------------------------  --------------------------- 
 
Administrative expenses                               (2,228)                     (2,366)                      (4,720) 
 
Other operating income                                     28                           -                           14 
 
Operating loss before 
 financing and taxation                                 (456)                       (537)                      (1,045) 
                                   --------------------------  --------------------------  --------------------------- 
 
Operating loss before 
 foreign exchange losses                                (344)                       (498)                        (895) 
Foreign exchange losses                                 (112)                        (39)                        (150) 
---------------------------  ----  --------------------------  --------------------------  --------------------------- 
 
Finance income/(costs)                                   (21)                        (35)                         (65) 
 
Loss on ordinary activities 
 before taxation                                        (477)                       (572)                      (1,110) 
 
Taxation                                                  215                         165                          165 
 
Loss on ordinary activities 
 for the period                                         (262)                       (407)                        (945) 
                                   --------------------------  --------------------------  --------------------------- 
 
Basic and diluted loss per 
 share (p)                    4                        (0.22)                      (0.51)                       (1.15) 
                                   --------------------------  --------------------------  --------------------------- 
 

All amounts are attributable to equity holders of the parent, and all arise from continuing operations. No amounts were recognised directly in equity, and therefore no separate statement of comprehensive income has been presented.

Imaginatik Plc

Condensed Unaudited Consolidated Interim Statement of Financial Position

As at 30 September 2016

Restated

 
                                                                  Unaudited  Unaudited 
                                                                    30 Sept    30 Sept 
                                                                       2016       2015  Audited 31 March 2016 
                                                            Note    GBP'000    GBP'000                GBP'000 
ASSETS 
Non-current assets 
           Property, plant and equipment                                 16         26                     19 
           Intangible assets                                            579        459                    493 
           Trade & other receivables                                    582        547                    273 
                                                                  ---------  ---------  --------------------- 
                                                                      1,177      1,032                    785 
Current assets 
           Trade and other receivables                                2,373      1,808                  1,403 
           Cash and cash equivalents                                    189         38                     23 
                                                                      2,562      1,846                  1,426 
                                                                  ---------  ---------  --------------------- 
Total assets                                                          3,739      2,878                  2,211 
                                                                  ---------  ---------  --------------------- 
 
EQUITY AND LIABILITIES 
Equity 
           Issued capital                                      6      4,042      3,370                  3,374 
           Share premium                                       6      7,764      6,876                  6,883 
           Share option reserve                                6      1,163      1,122                  1,143 
           Retained earnings                                   6   (13,079)   (12,279)               (12,817) 
                                                                  ---------  ---------  --------------------- 
Total equity attributable to equity holders of the parent             (110)      (911)                (1,417) 
                                                                  ---------  ---------  --------------------- 
 
Liabilities 
Non-current liabilities 
            Other payables                                            1,068      1,105                    736 
                                                                  ---------  ---------  --------------------- 
Total non-current liabilities                                         1,068      1,105                    736 
                                                                  ---------  ---------  --------------------- 
 
Current liabilities 
           Trade and other payables                                   2,781      2,684                  2,892 
                                                                      2,781      2,684                  2,892 
                                                                  ---------  ---------  --------------------- 
Total liabilities                                                     3,849      3,789                  3,628 
                                                                  ---------  ---------  --------------------- 
Total equity and liabilities                                          3,739      2,878                  2,211 
                                                                  ---------  ---------  --------------------- 
 
 

Imaginatik Plc

Condensed Unaudited Consolidated Interim Statement of Cash Flows

For the six months ended 30 September 2016

 
                                                   Unaudited 
                                                    6 months 
                                                  to 30 Sept                  Unaudited 
                                           Note         2016   6 months to 30 Sept 2015  Audited Year to 31 March 2016 
                                                     GBP'000                    GBP'000                        GBP'000 
 
Cash outflows from operating activities     7        (1,214)                      (558)                          (460) 
                                                 -----------  -------------------------  ----------------------------- 
 
Investing activities 
Acquisition of property, plant and 
 equipment                                               (5)                          -                            (1) 
Acquisition of intangible assets                       (163)                      (141)                          (264) 
                                                 -----------  -------------------------  ----------------------------- 
Net cash used in investing activities                  (168)                      (141)                          (265) 
                                                 -----------  -------------------------  ----------------------------- 
 
Net cash flow before financing activities            (1,382)                      (699)                          (725) 
                                                 -----------  -------------------------  ----------------------------- 
 
Financing activities 
Net proceeds from the issue of share 
 capital                                               1,549                        612                            623 
Net cash generated from financing 
 activities                                            1,549                        612                            623 
                                                 -----------  -------------------------  ----------------------------- 
 
Net (decrease)/increase in cash and cash 
 equivalents                                             166                       (87)                          (102) 
 
Cash and cash equivalents at start of 
 period                                                   23                        125                            125 
Cash and cash equivalents at end of 
 period                                                  189                         38                             23 
                                                 -----------  -------------------------  ----------------------------- 
 

Imaginatik Plc

Condensed Unaudited Consolidated Interim Statement of Changes in Equity

For the six months ended 30 September 2016

 
 
                             Restated Share        Restated Share 
                                    capital               premium   Share option reserve   Retained earnings     Total 
                                    GBP'000               GBP'000                GBP'000             GBP'000   GBP'000 
 
 Balance at 1 April 
  2015                                3,154                 6,480                  1,076            (11,872)   (1,162) 
                       --------------------  --------------------  ---------------------  ------------------  -------- 
 
 Loss for the period                      -                     -                      -               (407)     (407) 
 Share option costs                       -                     -                     46                   -        46 
 Shares issued                          216                   396                      -                   -       612 
                       --------------------  --------------------  ---------------------  ------------------  -------- 
                                        216                   396                     46               (407)       251 
 
 Balance at 30 
  September 2015                      3,370                 6,876                  1,122            (12,279)     (911) 
                       --------------------  --------------------  ---------------------  ------------------  -------- 
 
 Loss for the period                      -                     -                      -               (538)     (538) 
 Share option costs                       -                     -                     21                   -        21 
 Shares issued                            4                     7                      -                   -        11 
                       --------------------  --------------------  ---------------------  ------------------  -------- 
                                          4                     7                     21               (538)     (506) 
 
 Balance at 31 March 
  2016                                3,374                 6,883                  1,143            (12,817)   (1,417) 
                       --------------------  --------------------  ---------------------  ------------------  -------- 
 
 Loss for the period                      -                     -                      -               (262)     (262) 
 Share option costs                       -                     -                     20                   -        20 
 Shares issued                          668                   881                      -                   -     1,549 
                       --------------------  --------------------  ---------------------  ------------------  -------- 
                                        668                   881                     20               (262)     1,307 
 
 Balance at 30 
  September 2016                      4,042                 7,764                  1,163            (13,079)     (110) 
                       --------------------  --------------------  ---------------------  ------------------  -------- 
 

Imaginatik Plc

Notes to the Condensed Unaudited Consolidated Interim Financial Statements

For the six months ended 30 September 2016

   1.         Background 

Imaginatik plc (the "Company") is a company domiciled in the United Kingdom. The unaudited condensed consolidated interim financial statements of the Company for the six months ended 30 September 2016 comprise the Company and its subsidiary (together referred to as the "Group").

The condensed consolidated interim financial statements were authorised for issuance on 5 December 2016.

The interim financial statements are not statutory accounts for the purposes of S435 of the Companies Act 2006. The comparative figures for the year ended 31 March 2016 are not the Company's statutory accounts for that financial year. The financial information for the year ended 31 March 2016 is based on the statutory accounts for the financial year ended 31 March 2016. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

   2.         Basis of preparation 

The financial statements are presented in pounds sterling, rounded to the nearest thousand, unless stated otherwise. They are prepared on the historical cost basis.

These interim financial statements have been prepared using accounting policies based on IFRS as adopted by the European Union (including IAS and interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC")) that are expected to be applicable for the full reporting year in 2016. These remain subject to ongoing amendment and/or interpretation and are therefore subject to possible change. Consequently, information contained in these interim financial statements may need updating for any subsequent amendments to IFRS, or for any new standards that the Group may elect to adopt early.

The accounting policies have been applied consistently throughout the Group for purposes of these condensed unaudited consolidated interim financial statements.

   3.         Prior period adjustment 

An error was found in the prior period share capital and share premium reserve. The September 2015 comparative figures have been restated to reclassify this difference.

   4.         Loss per share 

Basic loss per share

The calculation of basic loss per share for the period ended 30 September 2016 was based on the loss attributable to ordinary shareholders of GBP262,000 (period ended 30 September 2015: GBP407,000; year ended 31 March 2016: GBP945,000) and a weighted average number of ordinary shares outstanding during the period ended 30 September 2016 of 121,204,394 (period ended 30 September 2015: 78,898,129; year ended 31 March 2016: 81,948,369).

   4.         Loss per share (continued) 

Diluted loss per share

The options in place during the periods ended 30 September 2016 and 30 September 2015 and during the year ended 31 March 2016 are considered to have an anti-dilutive effect. Therefore, basic and diluted loss per share is the same for each of the three periods.

   5.         Segmental reporting 

Management currently identifies the Group's two revenue streams as its operating segments. These operating segments are monitored by the Group's chief operating decision maker. For these operating segments only revenues are reported to the Group's chief operating decision maker as results; other costs and assets and liabilities cannot be reliably allocated to the operating segments.

 
                      Unaudited   Unaudited     Audited 
                       6 months    6 months        Year 
                          to 30       to 30          to 
                           Sept        Sept    31 March 
                           2016        2015        2016 
                        GBP'000     GBP'000     GBP'000 
 Segmental revenue 
 Technology               1,491       1,503       2,778 
 Consultancy                345         457       1,115 
                     ----------  ----------  ---------- 
                          1,836       1,960       3,893 
                     ----------  ----------  ---------- 
 

All other information presented to the Chief operating decision maker is the same as is reported in these financial statements.

The Group's revenues from external customers and its non-current assets are divided into the following geographical areas:

 
                                 Unaudited 
                                  6 months             Unaudited 
                                to 30 Sept   6 months to 30 Sept  Audited Year to 
                                      2016                  2015    31 March 2016 
                                   GBP'000               GBP'000          GBP'000 
Segmental revenue 
United States of America             1,240                 1,682            2,977 
Rest of the world                      596                   278              916 
                                     1,836                 1,960            3,893 
                               -----------  --------------------  --------------- 
Segmental non-current assets 
United States of America               399                   493              219 
Rest of the world                      778                   539              566 
                               -----------  --------------------  --------------- 
                                     1,177                 1,032              785 
                               -----------  --------------------  --------------- 
 

Revenues from external customers have been identified on the basis of the customer's geographical location. Non-current assets are allocated based on their physical location.

The Group has one customer (2015: one customer), who accounted for revenues of GBP214,000 (2015: GBP227,000), which amounted to more than 10% of Group revenues. These revenues arose in the Technology segment.

   6.         Share Capital and Reserves 
 
                                                 Unaudited 
                                                  6 months             Restated  Audited Year to 
                                                to 30 Sept   Unaudited 6 months         31 March 
                                                      2016      to 30 Sept 2015             2016 
                                                   GBP'000              GBP'000          GBP'000 
Share Capital 
At the beginning of the period                       3,374                3,154            3,154 
Shares issued                                          668                  216              220 
                                               -----------  -------------------  --------------- 
At the end of the period                             4,042                3,370            3,374 
                                               -----------  -------------------  --------------- 
 
Share premium 
At the beginning of the period                       6,883                6,480            6,480 
Shares issued in the period, net of expenses           881                  396              403 
                                               -----------  -------------------  --------------- 
At the end of the period                             7,764                6,876            6,883 
                                               -----------  -------------------  --------------- 
 
Share option reserve 
At the beginning of the period                       1,143                1,076            1,076 
Share-based payments                                    20                   46               67 
                                               -----------  -------------------  --------------- 
At the end of the period                             1,163                1,122            1,143 
                                               -----------  -------------------  --------------- 
 
Retained earnings 
At the beginning of the period                    (12,817)             (11,872)         (11,872) 
Loss for the period                                  (262)                (407)            (945) 
At the end of the period                          (13,079)             (12,279)         (12,817) 
                                               -----------  -------------------  --------------- 
 

New shares allotted

Issue costs relating to the above placings were GBP119,000 (period ended 30 September 2015: GBP38,000; year ended 31 March 2016: GBP38,000) and have been deducted from the share premium account.

   7.         Cash flows from operating activities 
 
 
                                                             Unaudited 
                                                              6 months 
                                                            to 30 Sept  Unaudited 6 months  Audited Year to 
                                                                  2016     to 30 Sept 2015    31 March 2016 
                                                               GBP'000             GBP'000          GBP'000 
 
Operating loss                                                   (456)               (537)          (1,045) 
Depreciation of tangible fixed assets                                8                  10               17 
Amortisation of intangible fixed assets                             78                  74              163 
Share-based payment expense                                         20                  45               67 
                                                           -----------  ------------------  --------------- 
Operating cash flows before movements in working capital         (350)               (408)            (798) 
(Increase) / decrease in trade and other receivables           (1,279)               (359)              320 
Increase / (decrease) in payables                                  221                  79             (82) 
                                                           -----------  ------------------  --------------- 
Net movement in working capital                                (1,058)               (280)              238 
                                                           -----------  ------------------  --------------- 
Cash used by operations                                        (1,408)               (688)            (560) 
                                                           -----------  ------------------  --------------- 
Corporation tax received                                           215                 165              165 
Net interest expense                                              (21)                (35)             (65) 
                                                           -----------  ------------------  --------------- 
Net cash from operating activities                             (1,214)               (558)            (460) 
                                                           -----------  ------------------  --------------- 
 

8. Availability of announcement

Copies of this announcement will be available from the Company's offices at Carnac Cottage, Cams Hall Estate, Fareham, Hampshire, PO16 8UU and from its website, www.imaginatik.com.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR TABMTMBMMTLF

(END) Dow Jones Newswires

December 06, 2016 02:00 ET (07:00 GMT)

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