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Very satisfactory and in line numbers this morning, with IMO confirming that they expect full year results to be in line with expectations.
IMO are set for 17.3p EPS this year, rising to 21.5p EPS next year.
IMO will therefore soon be on a P/E of only 13.9 - not bad for a business showing 40% adjusted PAT growth.
I note that the 3rd July acquisition of Impact Mobile is expected to be "immediately significantly earnings enhancing".
And there's been another acquisition this week which wasn't formally announced on RNS - IMO paid $1.5m for "the trade and assets of Express Pigeon, a US-based email marketing platform provider".
A shame about the fall in revenues from MTN/Nigeria - but this makes the H1 performance even more creditable, and IMO are certainly grabbing global business elsewhere.
There's large adjustments to get to the statutory numbers, i.e £3.1m of depreciation and amortisation and acquisition costs, which are fair enough, plus large share-based payment charges, and a huge tax charge which for the moment I can't see a formal explanation for (perhaps the large dep'n/amortisation is the reason).
The outlook statement is very confident, and I'm happy to hold for continued company and sector growth:
"The Group has continued to perform well, both on a financial and operational basis. We have a strong position as market leader in the UK, Canadian and South African markets and have seen numerous, multi-year new contract wins in the UK across our core sectors. We are pleased that we have seen 18% organic growth in gross profit from monthly recurring revenues, excluding the known headwinds created by MTN. I am also pleased with the improved operating leverage from past investments made in partnerships and R&D.
The technology and consumer landscapes are evolving as anticipated and given our leading positions in certain markets and sectors, we expect to continue to benefit from these changes in the near-medium term. We have had a strong start to the second half and remain confident about the Group's prospects for the full year. We expect full year results to be in line with management expectations."
Whitman Howard have issued a new Buy note, with a 343p target - here's a summary:
"Interim Results in line
IMImobile interim results were in line. Revenues were up 26% to £67.2m (2017: £53.1m), this is 15% organic growth. Gross profit was up 18% to £29.2m (2017: £24.7m), 3% organic or 10% organic excluding impact of MTN. Adjusted EBITDA up 35% to £7.7m (2017: £5.7m). Adjusted cash generated from operating activities of £6.1m representing operating cash conversion of 80% (2017: 100%). Net debt at 30 September 2018 was £9.3m (31 March 2018: net cash £4.3m). IMO expect full year results to be in line with management expectations. We retain our Buy rating and PT343p.
IMO is the leading player in Enterpise CPaaS (Communication Platform as a Service) in the UK and this is demonstrated by numerous multi-year new contract wins with large enterprise clients in the banking, utilities, retail and logistics sectors
Gross profit for Europe and Americas was £20.3m (2017: £13.8m), which is 70% of gross profit half year, growth of 48% YoY. Organic growth was 21% with additional growth from the acquisitions of Impact Mobile in July 2018 and Sumotext and Healthcare Communications in the previous year. H1 was a good period for blue chip UK client wins. This list includes Npower, and logistics provider, Hermes. This exemplifies IMO strong position in the Enterprise space. The acquisition in July of Impact Mobile expanded the business in North America. There are many revenue synergies between the businesses.....
....Gartner has recently defined the IMIconnect platform as CPaaS (Communications Platform as a Service), a cloud-based middleware on which you can develop, run and distribute communications software. The platform offers APIs that simplify the integration of communications capabilities into any app, service or business process. According to IDC The CPaaS market is forecast to grow from $2bn in 2017 to $10.9bn in 2022.
We are not making any material changes to forecasts."