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Excellent year end trading update ahead of expectations.....EBITDA is over 30% ahead of last year:
Https://uk.advfn.com/stock-market/london/imimobile-IMO/share-news/IMImobile-PLC-Trading-Update/79627498
Great cash conversion at 90%. And the outlook couldn't be better:
"We enter the new trading year with strong momentum and are confident in delivering continued organic growth across all parts of the business."
Great RNS, should be going up to 350+ imo
Enough said......
"With products that address and automate communications and CX, IMImobile is operating in a growth area, with a finger firmly on the digital business pulse":
Http://www.techmarketview.com/ukhotviews/archive/2019/04/04/imimobile-riding-cx-and-comms-demand
"Thursday 04 April 2019
IMImobile riding CX and comms demand
Momentum continues at UK HQ’d communications software and solutions provider IMImobile, based on a customer experience proposition to help organisations consolidate customer communications and deploy a consistent communications strategy across channels and platforms. Performance has been strong over the past several years and the last year was no different.
The full year trading update for the year to 31 March 2019 shows expected revenue increase of 28% to £142m, of which 18% is organic growth. While the overall rate of growth is lower than the 45% of the prior year, (see here) the organic rate has increased, indicating previous acquisitions have bedded in and are generating results and the overall portfolio is working for customers too. With further acquisitions feeding in (which are opening up new opportunities in the Americas in particular), IMImobile remains well positioned. Adjusted EBITDA is expected to be over £17.8m, a 30%+ YoY increase, with gross profit c.£62m, representing a c.20% increase.
Investment in the product portfolio, including the addition of new channels for WhatsApp for Business and Apple Business Chat for the important Enterprise cPaaS product (communications Platform-as-a-Service), plus commercial and technical progress with partners such as BT, KCOM, Salesforce and NICE inContact, point to several growth drivers to continue to capitalise on.
Geographic expansion is also a driver and during the year gross profit growth across Europe and Americas hit 45%, with the region contributing over 70% of Group gross profit. At 12% and 20% organic gross profit (at cc) respectively, APAC and the enterprise business in South Africa also performed well. There was some weakness in MEA due to the impact of one particular customer; excluding this customer gross profit for the region was 13%.
With products that address and automate communications and CX, IMImobile is operating in a growth area, with a finger firmly on the digital business pulse."
IMO have been tipped as a Buy in the IC......
Https://www.investorschronicle.co.uk/shares/2019/04/04/news-tips-entertainment-one-imimobile-atalaya-mining-more/
"IMImobile’s (IMO) revenues for the year ending March 2019 are “ahead of market expectations” with cash profits “marginally ahead”. Revenues are expected to be around £142m, up by 28 per cent. Gross profits are expected to be around £62m, up by a fifth – or by around 7 per cent on an organic basis. As previously indicated, the group endured “headwinds” with one customer in the Middle East and Africa; excluding this, underlying organic growth in group gross profits was around 13 per cent. Adjusted cash profits are expected to rise by over 30 per cent to more than £17.8m. Net debt of £7.9m reflected the completion of the Impact Mobile acquisition. The shares were up by around 8 per cent this morning. Buy."
N+1 Singer's latest note is very bullish - see these extracts:
"Strong FY19 performance, positive outlook
IMImobile has issued a full year trading update indicating that revenue will be ahead of expectations (6%), with EBITDA marginally ahead (2%). Revenue is expected to be up 28% to c£142m, with adjusted EBITDA increasing over 30% to over £17.8m. This is a strong financial performance that reflects the considerable sales momentum within the business, as well as strategic progress with partners and new geographies. Looking ahead, the year has started well and management is confident of continued organic growth across all parts of the business. A FY 2020 consensus EV/EBITDA multiple of c10x looks highly attractive given powerful market dynamics, a strong consumer engagement offering, double-digit organic growth and increasing profitability....
.....Operational highlights include the number of clients with more than £500k p.a. revenue increasing to 40 from 33; clients with revenues of £100k-£500k increasing to 89 from 43 in the prior in year; enhancement of the Enterprise cPaaS offering with the recent launch of new communication channels such as WhatsApp Business and Apple Business Chat; considerable commercial and technical progress made with partners (including BT, KCOM, Salesforce and NICE inContact); and increasing focus on the North American market through the acquisition of Impact Mobile (which is performing as expected), additional senior management hires and investment.
Impact on earnings & valuation
This is a strong financial performance that reflects the considerable sales momentum within the business, as well as strategic progress with partners and new geographies. This momentum underpins a positive outlook, with management confident of continued organic growth across all parts of the business. The shares are currently trading on a FY 2020 consensus EV/EBITDA multiple of c10x, which looks highly attractive given powerful underlying market dynamics, a compelling consumer engagement offering, double-digit organic growth and increasing profitability."
Thanks for all your updates Rivaldo....They are much appreciated