IMO.L Share News (IMO)

(Sharecast News) - IMImobile said on Tuesday that, since its update in July, momentum had strengthened further.
The AIM-traded firm said that for the six months ending 30 September, its cloud communications product set - which represents almost 90% of its gross profit - was expected to deliver year-on-year gross profit growth of at least 20%.

It said that included a contribution from the acquisitions of 3Cinteractive and Rostrvm Solutions, as well as organic growth.

"Alongside continued momentum across our core sectors, volumes and activity levels in the sectors most adversely affected by the coronavirus pandemic, notably healthcare, SMB and retail, have shown significant recovery in the current quarter," the board said in its statement.

It said drong progress had also been made in the current quarter in North America, with multiple new customers won across a range of sectors, including banking, financial services, insurance, mobile operators and retail.

"This is in addition to the successful launch of new strategic deployments for large US retailers which help underpin growth expectations for the second half of the 2021 financial year."

The group said its value-added services (VAS) operator and mobile payments business, representing about 10% of gross profit, had, as expected, continued to experience headwinds.

It said the new contracts, which were won through competitive procurement processes, as well as a growing pipeline of opportunities in North America, gave it confidence in its ability to "compete and succeed" in the largest addressable market for its product set.

"The group continues to see substantial opportunities for growth in all markets in which it operates.

"It expects disruption caused by the pandemic to accelerate demand from large enterprises for its leading software and services as they transform their customer engagement strategies.

"The board [is] pleased with the group's performance in the financial year to date and remain confident that the results for the full year will be in line with market expectations."

At 1554 BST, shares in IMImobile were up 2.74% at 441.8p.