interim results for the six months ended 30 september 2014 · textlocal overview “we believe the...

Interim results for the six months

ended 30 September 2014

› Introduction to IMImobile

› Results highlights

› Financial results

› Summary and outlook

2

| Agenda

3

| The management team

Mike Jefferies

Group Finance Director

Jay Patel

Chief Executive Officer

» 5 years at IMImobile

» Executive position at

WIN plc and formerly

with the Whirlpool

Corporation

» Chartered Management

Accountant

» 14 years with IMImobile

» 20 years of Technology,

Media & Telecom

experience with BSkyB,

UBS Warburg, Spark

Ventures

» Chartered Accountant with

KPMG and MBA from

INSEAD

Vishwanath Alluri Founder & Chairman

Shyam Bhat Founder & CTO

› Chartered Accountant and

Company Secretary

› Extensive experience in creating

technology companies

› Engineer from highly prestigious

Indian Institute of Technology,

Bombay

› Two decades of experience in

engineering new product

developments

John Allwood Non-Executive Director

Simon Paul Blagden MBE Non-Executive Director

› Ex Chief Executive of Orange UK

› Ex MD of Telegraph Media Group

› Non-Executive Director of Talk Talk

› Non-Executive Co-Chairman

Fujitsu Europe

› Chairman Duke of York Trust

Board of Directors

4

Who we are

We are an IP led technology

company that builds and owns

software to help clients capitalise

on the growth in mobile

communications.

Our products and services enable

our customers to use:

| About IMImobile

Live services in

Atlanta

London

Dubai

What we do

Who we do it for

Bogota

Mobile as a

revenue channel

Mobile as a CRM &

Engagement channel

Mobile to enable

Business Efficiency

Hyderabad

5

Operator & Enterprise IT Systems

DaVinci

CMS

DaVinci

Campaign Manager

DaVinci

Profile Manager

DaVinci

Social

IMImobile

OPENHOUSE

DaVinci Evolved Service Platform

Mobile

Network

Social

Network

Payment

Network

OTT

Services

Last Mile

Messaging Voice Connectivity Push Notification

Our Platform & Strategy: Network - Device - Channel agnostic

Device complexity

Multiple OS & Devices

Network complexity

Multiple MNOs & Channels

| Simplifying mobile engagement

Integration complexity

Multiple IT Systems

| Our core products & services

6

Mobile as a revenue

channel

Mobile as a CRM and

engagement channel

Mobile to enable

business efficiency

We enable our clients to drive revenue

and monetise their available assets,

services and products by streamlining

the payment process.

We help our clients to develop a data

driven, multi-channel CRM strategy that

engages and serves customers at every

stage of the customer lifecycle.

We help our clients utilise mobile

capabilities to improve and streamline

business processes as well as

customer and field force operations.

› Mobile Content Services

› Mobile Operator Billing & Payments

› Apps, Music & Digital Entertainment Services

› Multi-channel Marketing Execution

› CRM & Loyalty Programmes

› Multi-channel audience engagement

› Optimising Field Force Management

› Customer Service (2-Factor & Click & Collect)

› Enterprise Apps





7

| Agenda

8

| Results highlights

Results in line with expectations

Key financial highlights

» Revenue up 5% to £21.5m (2013: £20.5).

» Gross profit up 7% to £13.5m (2013: £12.7m).

» EBITDA up 10% to £3.8m (2013: £3.4m).

» Adjusted Profit after tax up 29% to £2.3m (2013: £1.7m).

» Share based payment charge of £5.7m relating to pre-IPO option grants.

» Strong performance from Europe with Gross Profit up 18% to £6.3m.

» Net cash generated from operating activities of £1.7m (2013: £4.9m).

» Cash and cash equivalents at 30 September 2014 of £16.9m (2013: £9.3m).

“These six months were a strategically important period for the Group and we are pleased with the

results which demonstrate a good overall performance. We are delighted to have successfully

listed, made our first material acquisition and continued to deliver profitable growth.”

Key operational highlights

» New major operator clients in the UK, Nigeria and

Costa Rica and initial progress into the Gambling and

Retail sectors.

» Renewal of key contracts with BBC and leading UK

motoring organisation.

» Recognised for mobile innovation awards for work

with Mobile by Sainsbury’s, Ikea and Universal Music.

» Successful listing on AIM on 27 June 2014 raising a

total of £30m.

» Completion of acquisition of TextLocal (TxtLocal

Limited) on 13 October 2014 giving access to large

SMB customer base via SaaS platform, and will be

earnings enhancing during the current year.

Jay Patel, Chief Executive Office, IMImobile

9

| Strategic highlights - TextLocal Acquisition

TextLocal Overview

“We believe the acquisition by IMImobile will allow TextLocal to stay at the forefront of a fast-moving

and competitive market. The acquisition will also strengthen our capabilities to deliver service

innovation and significantly extend our international client base.”

» Best-in class platform for SMB’s messaging

solutions having served over 100,000 businesses

» Founded in 2005; Team of 30 based in offices in

Chester and Malvern

» Strong track record of profit and cash generation

with revenue and profit after tax of £7m and £1m,

respectively, for the year ending 30 November

2013

» Customers give TextLocal 4.9 / 5 stars from 1,549

reviews with a 96% overall satisfaction rate.

Jason Palgrave-Jones, MD TextLocal

10

| Regional updates

EUROPE & AMERICA

» Europe region delivered Gross Profit growth of 18%

» New strategic client wins and additional sales to

existing customers contributed to the performance

of the region

» Margins for SaaS and Managed Solutions grew due

to reduction in cost of network infrastructure

» Continue to see growing appetite of large

enterprises and MNOs to invest in marketing

programmes

» Delivered innovation such as ‘Tweet to Donate’

enabling the Post Office to become first UK

organisation to process donations via Twitter

» Launched and manage Loyalty Programme for

South American operator

MEA, INDIA & SE ASIA

» Gross Profit in MEA region grew by 8%

(combination of Managed Solutions and Licence

Revenues)

» New contract wins with mobile operator clients,

deployments scheduled for second half of the

year

» Gross Profit in India and South East Asia

decreased by 19% (as expected)

› The decline is an ongoing consequence of the

implementation of consumer protection

regulations that have impacted our clients, the

MNOs

› We are confident of our return to growth with

successful launches of new services in new

territories and sectors





11

| Agenda

Six months ended 30

September 2014 2013 Change

Revenue £21.5m £20.5m 5%

Gross profit £13.5m £12.7m 7%

Gross margin 62.7% 61.8%

EBITDA1 £3.8m £3.4m 10%

EBITDA margin 17.5% 16.8%

Adjusted profit after tax2 £2.3m £1.7m 29%

Cash & cash equivalents £16.9m £7.0m 143%

12

| Results at a glance

¹EBITDA is defined by the Group as loss/profit before tax, depreciation, amortisation, net finance costs, fees

incurred in relation to IPO, share based payment charge and other exceptional items

²Adjusted profit after tax is defined as profit before fees incurred in relation to IPO, share based payment charge

and other exceptional items

11.2

12.7

13.5

8.0

9.0

10.0

11.0

12.0

13.0

14.0

HY13 HY14 HY15

Gross Profit in £m

2.5

3.4

3.8

1.0

1.5

2.0

2.5

3.0

3.5

4.0

HY13 HY14 HY15

EBITDA in £m

13

| Income statement

Six months ended 30 September 2014 2013 % change

Revenue 21,538 20,506 5%

Gross profit 13,509 12,665 7%

EBITDA 3,774 3,444 10%

Depreciation and amortisation (1,059) (1,063)

Operating profit before SBP and

exceptional items 2,715 2,381 14%

Share based payments (4,469) (184)

IPO related costs and other exceptional

items (1,265) 340

Financing costs 8 (45)

Tax (472) (590)

Profit after tax (3,483) 1,902

EBITDA 3,774 3,444 10%

EBITDA % 17.5% 16.8%

Adjusted profit before tax 2,723 2,336 17%

Adjusted profit before tax % 12.5% 11.2%

Adjusted profit after tax 2,251 1,746 29%

Adjusted profit after tax % 10.6% 8.2%

» Growth in all key metrics

» Revenue of £21.5m, +5%

» Gross profit of £13.5m, +7%

» EBITDA of £3.8m, +10%

» Improving operating leverage

» Operating profit before SBP and

exceptionals of £2.7m, +14%

» Adjusted profit after tax growth

of 29% to £2.3m (2013: £1.7m)


14

| Balance sheet

As at 30 September 2014 2013

Non-current assets Goodwill 7,861 7,861

Intangible assets 577 475

Available-for-sale financial

assets 424 424

Property, plant and equipment 4,719 5,134

Deferred tax assets 1,301 871

14,882 14,765

Current Assets Cash and cash equivalents 16,912 9,305

Trade and other receivables 20,111 21,367

37,023 30,672

Current Liabilities Trade and other payables (17,349) (20,402)

(17,349) (20,402)

Net current assets 19,674 10,270

Non-current liabilities Redeemable preference shares - (10,895)

Provision for defined benefit

gratuity (214) (245)

Deferred tax liabilities (381) -

(595) (11,140)

Net assets 33,961 13,895

» Modest capex spend

» No capitalisation of development

» Net £7m of cash raised as part of

the IPO

» Deferred licence revenues of

£1.5m recognised in period

» Preference shares converted prior

to IPO


15

| Cash flow

Six months ended 30 September 2014 2013

Net cash flows from operating activities 1,656 4,943

Interest received (15) 24

Purchases of intangibles (256) (84)

Purchases of property plant and equipment (597) (510)

Acquisition of Group (following IPO) (19,874) -

Net cash used in investing activities (20,742) (570)

Repayment of borrowings – Bank loans - (925)

Issue of borrowings – Related party director loans - (301)

Proceeds from issuance of Ordinary shares 30,000 555

IPO related expenditure (3,286) -

Dividends paid to owners of the parent - (415)

Net cash used in financing activities 26,714 (1,086)

Net increase in cash and cash equivalents 7,628 3,287

Cash and cash equivalents at beginning of year 9,305 4,643

Effect of foreign exchange rate fluctuations (21) 58

Cash and cash equivalents at the end of the year 16,912 6,956

» Cash from operations impacted

by “pre-paid” licence revenues in

prior year

» No external debt

» Net £7m raised during IPO

» TextLocal acquisition post period

end


16

| Summary and outlook

» Second half of 2015 financial year has started well

with trading in line with expectations

» The Group remains on track to achieve market

expectations for the full year

» TextLocal is currently being integrated into the Group

and is trading well since acquisition

» We continue to see growing interest from our large

blue chip customers in all our operating regions and

as a result the Board are confident of the Group’s

future prospects

Focused on building a global business

| Thank you

5 St John’s Lane

London

EC1M 4BH

United Kingdom

IMImobile

17

| Disclaimer

18

This presentation (“Presentation”), and the information contained herein, is not for viewing, release, distribution or publication into or in the United States or any other jurisdiction where applicable laws prohibit its release, distribution or publication. This Presentation is being issued by IMImobile Limited (the "Company") for information purposes only. The content of this Presentation has not been approved by an authorised person for the purposes of Section 21(2)(b) of the Financial Services and Markets Act 2000. Reliance on this Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. This Presentation is not an admission document or an advertisement and does not constitute or form part of, and should not be construed as, an offer or invitation to sell or any solicitation of any offer to purchase or subscribe for any shares in the Company (“Shares”) in the United States or any other jurisdiction. Neither the Presentation, nor any part of it nor anything contained or referred to in it, nor the fact of its distribution, should form the basis of or be relied on in connection with or act as an inducement in relation to a decision to purchase or subscribe for or enter into any contract or make any other commitment whatsoever in relation to any Shares. Any such offer, subscription or solicitation will only be made by means of an admission document which may be issued by the Company in due course Whilst the Presentation has been prepared in good faith, no representation or warranty, express or implied, is given by or on behalf of the Company, its respective directors and affiliates or any other person as to the accuracy or completeness of the information or opinions contained in this Presentation and no responsibility or liability whatsoever is or will be accepted by the Company, its respective directors and affiliates or any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith. Any such liability is expressly disclaimed. The contents of this Presentation are confidential and may not be copied, distributed, published or reproduced in whole or in part, or disclosed or distributed by recipients to any other person. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this Presentation or on its completeness, accuracy or fairness. Certain statements, beliefs and opinions in this Presentation are forward-looking, which reflect the Company’s or, as appropriate, the Company’s directors’ and/or proposed directors’ current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Although reasonable care has been taken to ensure the facts stated in this Presentation are accurate and that the assumptions expressed are fair and reasonable the information in this Presentation, which includes certain information drawn from public sources, does not purport to be comprehensive, and has not been independently verified and is liable to change. The date of this Presentation is 15/04/2014. Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this document. Recipients should not treat the contents of this Presentation as advice relating to legal, taxation or investment matters, and are to make their own assessments concerning these and other consequences of the various investments, including the merits of investing and the risks. Recipients are advised to conduct their own due diligence. The promotion of the Shares and the distribution of this Presentation in the United Kingdom are restricted by law. Accordingly, this Presentation is directed only at (i) persons outside the United Kingdom to whom it is lawful to communicate it, or (ii) persons having professional experience in matters relating to investments who fall within the definition "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), or (iii) high net worth companies, unincorporated associations and partnerships and trustees of high value trusts as described in Article 49(2) of the Order and any other persons who fall within other applicable exemptions under the Order (together, “Relevant Persons”). Any investment or investment activity to which this Presentation relates is available only to, and will be engaged in only with, Relevant Persons. This Presentation must not be acted on or relied on by persons who are not Relevant Persons. This Presentation is being supplied to you solely for your information and may not be copied, reproduced, further distributed to any other person or published, in whole or in part, for any purpose. The distribution of this Presentation in certain non-UK jurisdictions may be restricted by law and therefore persons into whose possession this document comes should inform themselves about and observe any such restrictions. Any such distribution could result in a violation of the law of such jurisdictions. Neither this document nor any copy of it may, subject to certain exemptions, be taken or transmitted into Australia, Canada, Japan, South Africa, Singapore, or the US or distributed to these countries or to any national, citizen or resident thereof or any corporation, partnership or other entity created or organised under the laws thereof. This Presentation does not constitute or form any part of an offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe or otherwise acquire, any ordinary shares in the Company in any jurisdiction. No person other than Company is authorised to give any information or to make any representation other than as contained in this document and, if given or made, such information or representation must not be relied upon as having been authorised by the Company. This Presentation has been delivered to interested parties for information only and on the express understanding that they shall use it only for the purpose set out above. The distribution of this Presentation shall not be deemed to be any form of commitment on the part of the Company to proceed with any transaction. Any dispute, action or other proceeding concerning this presentation shall be adjudicated within the exclusive jurisdiction of the courts of England. All material contained in this Presentation (including in this disclaimer) shall be governed by and construed in accordance with the laws of England and Wales.

| Disclaimer

19

IMImobile PLC (“the Company”) was incorporated on 4 December 2013 and did not trade within the 17 week period ended 31 March 2014. As a result no income statement, or cash flow statement, has been presented for the company within this preliminary announcement. As at 31 March 2014 the company had net assets and equity of £100. On 27 June 2014 the Company was successfully admitted to AIM and used the proceeds from the initial placing to pay the cash consideration for the acquisition of 76% of the issued share capital of IMI Mobile Private Limited. The Company and its NOMAD, Spark Advisory Partners Limited, have entered into a relationship agreement with the two founding shareholders (“Founders”) of IMI Mobile Private Limited who own 24% of the issued share capital of IMI Mobile Private Limited. The relationship agreement gives the Founders the right (but not the obligation) to swap all of their IMI Mobile Private Limited shares for ordinary shares in the Company on the basis of one IMI Mobile Private Limited share for three ordinary shares in the Company. Whilst at 31 March 2014 the Company had no trade or assets and had not completed the acquisition of IMI Mobile Private Limited, the Directors believe that the provision of additional information on the results of IMI Mobile Private Limited and its subsidiaries for the year ended 31 March 2014 and its financial position as at 31 March 2014, together with comparative information for the prior year, is necessary in order to present a true and fair view of the company’s financial statements. This additional information has also been included in the preliminary announcement and is described as the Pro-forma Consolidated Financial Information. The additional information does not reflect the acquisition of IMI Mobile Private Limited by IMImobile PLC. This will be accounted for as a capital reorganisation, reflecting the substance of the transaction. Hence the consolidated financial statements of the company will be prepared on the same basis as presented in this Pro Forma Financial Information with the 24% interest in IMI Mobile Private Limited owned by the two founding shareholders accounted for as a non-controlling interest. The financial highlights and commentary contained within this presentation are based on the pro-forma information described above.

interim results for the six months ended 30 september 2014 · textlocal overview “we believe the...

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