29 sep 25   itim group plc - interim results itim group plc | itim | 61.5 -0.50 (-0.8%) | mkt cap: 19.3m    rns number : 0795b itim group plc 29 september 2025   29 september 2025   itim group plc   ("itim" or the "company" and with its subsidiaries the group")   interim results for the six months ended 30 june 2025   itim group plc (aim:itim), a saas-based technology company that enables store-based retailers to optimise their businesses to improve financial performance, is pleased to announce its unaudited interim results for the six months ended 30 june 2025.   financial highlights   ·      group revenue of £8.0m (hy24: £8.8m; fy24: £17.9m), with booked recurring revenue of £6.6m (hy24: £6.6m; fy24: £13.4m), representing 83% of group revenue (hy24: 75%; fy24: 75%)   ·      annual recurring revenue ("arr")¹ of £13.3m (hy24: £13.2m; fy24: £13.0m), reflecting annual growth of 1% (hy24: 0%; fy24: -1%)   ·       adjusted ebitda² of £0.4m (hy24: £1.2m; fy24: £2.5m), with an adjusted ebitda margin of 5% (hy24: 13%; fy24: 14%)   ·      (loss)/profit before tax of £(0.7)m (hy24: £(0.1)m; fy24: £0.2m)   ·      adjusted earnings per share³ of (1.6)p (hy24: 0.18p; fy24: 1.09p); basic earnings per share of (1.6)p (hy24: (0.27)p; fy24: 0.64p)   ·      net cash of £1.8m (hy24: £3m; fy24: £3.8m)     full year numbers quoted above are audited and half year numbers quoted above are unaudited   1. annual recurring revenue 2. ebitda has been adjusted to exclude share-based payment charges, exceptional items, along with depreciation, amortisation, interest and tax from the measure of profit. 3. the profit measure has been adjusted to exclude exceptional items and share option charge     ali athar, ceo of itim, commented: "i am pleased to report a resilient first half performance with good recurring revenue and positive ebitda in a tough retail climate marked by rising costs and fragile consumer confidence. while project cycles have lengthened, we are seeing continued interest in our solutions as retailers seek smarter ways to drive efficiency and margin. our upcoming ai platform, built on agentic architecture, will further strengthen our offering, helping clients unlock value across sales, productivity and stock. as investment appetite returns, we are confident our pipeline will convert, reinforcing our role as a trusted partner in retail transformation."   enquiries: itim group plc ali athar, ceo ian hayes cfo   0207 598 7700 zeus (nomad & broker) katy mitchell harry ansell darshan patel 0203 829 5000 ifc advisory graham herring florence staton 0207 3934 6630   about itim itim was established in 1993 by its founder, and current chief executive officer, ali athar. itim was initially formed as a consulting business, helping retailers effect operational improvement. from 1999 the company began to expand into the provision of proprietary software solutions and by 2004 the company was focused exclusively on digital technology. itim has grown both organically and through a series of acquisitions of small, legacy retail software systems and associated applications which itim has redeveloped to create a fully integrated end to end omni-channel platform.     ceo statement   the board is pleased to present the group's half year results for 2025 in which the business reports good annual recurring revenue and a positive ebitda.   the first six months of the year have been influenced by the cost pressures currently affecting the retail sector. these pressures have inevitably affected the pace of activity within our business, with a number of projects being pushed back, particularly those involving substantial investment commitments. whilst the group has not lost ongoing business, delays in decision-making have occurred and naturally impacted performance. at the same time, it is important to note that the interim results for 2024 included a significant contribution from large-scale project revenues generated through the entertainers partnership with tesco.   it is widely acknowledged that uk retailers are battling with what has been described as a "perfect storm" of cost pressures. these include an increasing burden of taxation and regulatory levies, continued upward pressure on wage and employment costs, and the broader impact of inflationary forces. collectively, these factors are eroding margins, suppressing profitability, and forcing retailers to reassess both pricing strategies and investment priorities.   consumer confidence, meanwhile, remains fragile. persistent inflation, rising household debt and ongoing concerns over job security, have constrained discretionary spending. retailers, faced with the difficult balance of managing higher costs while maintaining competitiveness, have passed some of these pressures onto consumers through increased pricing. as a result, demand dynamics on the high street remain subdued, and the outlook for the crucial christmas trading period is uncertain. in turn, these uncertainties have led many retailers to defer or scale back investment in longer-term transformation programmes.   within this difficult trading environment, itim's business model is considered an attractive proposition providing an effective way for retailers to mitigate rising costs and invest in operational efficiency and technology. areas such as process automation, digital transformation, and supply chain optimisation are increasingly being recognised as essential levers for long-term resilience. encouragingly, the group is seeing evidence of retailers adopting these strategies offered by our products and services.   the current pipeline of new opportunities is encouraging and reflects both the relevance of itim's solutions and the confidence in its ability to deliver value. that said, given the current macro and retail environments, projects are taking longer to close, and some have been pushed back into later periods. in the short term, the group remains disciplined in managing costs and has taken appropriate action to minimise the impact on profitability while protecting its capacity to deliver ensuring that the group remains well positioned to respond to new levels of interest.    the group is continuing its focus on machine learning and the use of advanced mathematics in building systems.  this year, itim will be launching its ai platform based on an agentic ai architecture, where a number of of 'agents' will sit on top of our unify platform to help retailers identify opportunities to optimise sales, productivity, margin and stock.   in conclusion, while the present trading environment remains challenging the group is experiencing increased levels of interest for its services. the board is confident in its positioning within the marketplace with the need for retail technology that can drive profitability and business transformation being greater than ever. the group's proposition is highly aligned to the needs of retailers facing cost pressures, reinforcing its competitive position in the marketplace. itim is currently seeing its largest pipeline of opportunities in its history, and as investment cycles recover, the board is confident of converting a number of these into increased revenues, albeit with some uncertainty around the exact timing.     consolidated statement of comprehensive income for the half-year ended 30 june 2025    six month period ended 30 june 2025 six month period ended 30 june 2024 year ended 31 december 2024   unaudited unaudited               audited  notes £000 £000 £000 continuing operations     revenue  7,998 8,835 17,908 cost of sales  (5,343) (5,451) (10,724) gross profit  2,655 3,384 7,184      administrative expenses  (2,277) (2,233) (4,716) ebitda  378 1,151 2,468      amortisation of intangible assets  (751) (702) (1,400) depreciation  (30) (30) 62 depreciation of leased assets  (262) (299) (594) profit/(loss) from operations  (665) 120 412      exceptional  - (141) (141) other interest - right of use assets  (42) (52) (96) loss before taxation  (707) (73) 175      taxation  207 (12) 25 loss for the period/year  (500) (85) 200      other comprehensive income     exchange differences on retranslation of foreign operations  82 (57) (113)      total comprehensive income for the period/year net of tax  (418) (142) 87      earnings per share     basic 2 (1.60p) (0.27p) 0.64p diluted 2 (1.60p) (0.27p) 0.57p           consolidated statement of financial position as at 30 june 2025       as at 30 june 2025 as at 30 june 2024 as at 31 december 2024       unaudited unaudited audited       £000 £000 £000               non-current assets           intangible assets   11,332 11,163 11,229   plant and equipment   127 316 254   right-of-use assets   690 938 770   deferred tax   2 - -       12,151 12,417 12,253               current assets           trade and other receivables   4,898 4,062 3,636   cash and cash equivalents   1,837 2,976 3,795       6,735 7,038 7,431               total assets   18,886 19,455 19,684               current liabilities           trade and other payables   (6,185) (6,146) (6,273)   right-of-use liability   (283) (308) (284)       (6,468) (6,454) (6,557)               non-current liabilities           trade and other payables due in more than one year   (73) (248) (183)   right-of-use liability   (459) (669) (535)   deferred tax   (665) (697) (793)     (1,197) (1,614) (1,511)               total liabilities    (7,665) (8,068) (8,068)               net assets   11,221 11,387 11,616              capital and reserves           called up share capital   1,571 1,561 1,561   share premium account   7,411 7,398 7,398   share options reserve   513 513 513   capital redemption reserve   1,103 1,103 1,103   foreign exchange reserve   63 37 (19)   retained profit/(loss)   560 775 1,060   shareholders' funds   11,221 11,387 11,616           consolidated statement of cash flow for the half-year ended 30 june 2025               six month period ended 30 june 2025 six month period ended 30 june 2024 year ended 31 december 2024     unaudited unaudited audited     £000 £000 £000 cash flows from operating activities         profit after taxation   (500) (85) 200 adjustments for:       taxation   (207) 12 (25) other interest on leases   42 52 96 amortisation and depreciation   1,043 1,031 2,056 cash flows from operations before working capital changes   378 1,010   2,327   movement in trade and other receivables   (1,115) 1,397 1,528 movement in trade and other payables   (90) (237) (55)       cash generated from operations   (827) 2,170 3,800 corporation tax   (28) (18) 377 net cash flow from operating activities   (855) 2,152 4,177   cash flow from investing activities     capital expenditure on intangible assets   (793) (797) (1,601) purchase of plant and equipment   (5) (6) (61) net cash flow from investing activities   (798) (803) (1,662)       cash flow from financing activities     interest repayments   (30) - (50) payment of lease liabilities   (303) (293) (589) share capital issued   23 -                              - net cash flow from financing activities   (310) (293) (639)         net increase/(decrease) in cash and cash equivalents   (1,963) 1,056 1,876       cash and cash equivalents at beginning of year   3,795 1930 1,930 exchange (losses)/gains on cash and cash equivalents  5 (10)                        (11)       cash and cash equivalents at end of year   1,837 2,976 3,795        consolidated statement of changes in equity as at 30 june 2025   share capital share premium share option reserve capital redemption reserve foreign exchange reserve retained earnings total equity   £000 £000 £000 £000 £000 £000 £000                 at 1 january 2025 1,561 7,398 513 1,103 (19)    1,060 11,616         comprehensive income for the year - - - - -    (500)     (500) foreign exchange movement - - - - 82 -         82 total comprehensive income - - - - 82    (500)     (418) shares issued in period 10 13 - - - -       23 at 30 june 2025 (unaudited)  1,571 7,411 513 1,103 63  560 11,221           at 1 january 2024           1,561           7,398           513           1,103           94           860           11,529                 comprehensive income for the year - - - - - (85) (85) foreign exchange movement - - - - (57) - (57) total comprehensive income - - - - (57) (85) (142) at 30 june 2024 (unaudited)  1,561 7,398 513 1,103 37 775 11,387               at 1 january 2024               1,561               7,398               513               1,103               94               860               11,529   comprehensive income for the year - - - - - 200 200 foreign exchange movement - - - - (113) - (113) total comprehensive income - - -   (113) 200   87                 at 31 december 2024 (audited) 1,561 7,398 513 1,103 (19) 1,060 11,616      notes to the financial information   1.         general information itim group plc is a public limited company ("company") incorporated in the united kingdom under the companies act 2006 (registration number 03486926). the company is domiciled in the united kingdom and its registered address is 2nd floor, atlas house, 173 victoria street, london sw1e 5nh. the company's ordinary shares are admitted to trading on the aim market of the london stock exchange ("aim").   the group's principal activities have been the provision of technology solutions to help clients drive improvements in efficiency and effectiveness.    the group's interim report and accounts for the six months ended 30 june 2025 have been prepared using the recognition and measurement principles of international financial reporting standards and interpretations as endorsed by the european union (collectively "adopted ifrs").   these interim financial statements for the six months ended 30 june 2025 have been prepared in accordance with the aim rules for companies and should be read in conjunction with the financial statements for the year ended 31 december 2024, which have been prepared in accordance with ifrs as adopted by the european union. the interim report and accounts do not include all the information and disclosures required in the annual financial statements.   the interim report and accounts have been prepared on the basis of the accounting policies, presentation and methods of computation as set out in the group's december 2024 annual report and accounts, except for those that relate to new standards and interpretations effective for the first time for periods beginning on (or after) 1 january 2025, and will be adopted in the 2024 annual financial statements.   the interim report and accounts do not comprise statutory accounts within the meaning of section 434 of the companies act 2006. these interim financial statements were approved by the board of directors on 24th september 2025. the results for the six months to 30 june 2025 and the comparative results for the six months to 30 june 2024 are unaudited.  the figures for the period ended 31 december 2024 are extracted from the audited statutory accounts of the group for that period.   the directors believe that a combination of the group's current cash, projected revenues from existing and future contracts will enable the group to meet its obligations and to implement its business plan in full. inherently, there can be no certainty in these matters, but the directors believe that the group's internal trading forecasts are realistic and that the going concern basis of preparation continues to be appropriate.       2.         earnings per share   basic and diluted (loss)/earning per share is calculated by dividing the (loss)/profit attributable to owners of the parent by the weighted average number of ordinary shares in issue during the period. for the avoidance of doubt the deferred shares have been excluded as they have no rights to profits or capital. the company's share options have a dilutive effect over the two year period.      6 months ended 30 june 2025 unaudited     6 months ended 30 june 2024 unaudited     year ended 31 december 2024 audited  £000 £000 £000        profit/(loss) after tax for the year (500) (85) 200 exceptional items - 141 141 share option charge - - - adjusted loss after tax for the year (500) 56 341      weighted average number of shares     basic - 000 31,304 31,211 31,211 potentially dilutive share options - 000 3,546 3,657 3,657 diluted average number of shares - 000 34,850 34,868 34,868       earnings per share:     basic - pence on continuing operations (1.60) (0.27) 0.64 diluted - pence on continuing operations (1.60) (0.27) 0.57     adjusted earnings - basic - pence on continuing operations (1.60) 0.18 1.09 adjusted earnings - diluted - pence on continuing operations (1.60) 0.16 0.98       this information is provided by rns, the news service of the london stock exchange. rns is approved by the financial conduct authority to act as a primary information provider in the united kingdom. terms and conditions relating to the use and 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