13th May 2025 09:04
(Alliance News) - Itim Group PLC on Tuesday expressed cautious optimism for the future, even as its shares fell 18% despite a return to profitability in 2024.
The London-based retail software solutions provider reported a swing to a pretax profit of GBP175,000 in 2024 from a pretax loss of GBP1.1 million in 2023.
Driving this swing was an 11% increase in itim's top line to GBP17.9 million from GBP16.1 million, with it primarily attributing the advance to a 34% increase in project revenue.
The final results were in line with a trading update that Itim provided in late February.
itim said subscription revenue remained "relatively steady" during the year, with recurring revenue as a percentage of total turnover falling to 75% from 79% as it noted a shift towards driving services revenue.
itim said the swing to profit serves as a "clear indication" of the effectiveness of its strategy.
Despite the improved earnings, itim shares fell 18% to 46.14 pence on Tuesday morning in London. However, the shares remain up 32% over the past 12 months.
Administrative expenses rose 8.3% to GBP4.7 million from GBP4.4 million, but with itim noting that as a percentage of sales, they were down to 26% from 27% the prior year.
In line with 2023, itim proposed no dividend for 2024.
Chief Executive Ali Athar described 2024 as "the most pivotal year for itim since our IPO", as the business returned to profitability. Itim made it initial public offering in June 2021 at a price of 154 pence, meaning its shares are down by 70% since.
itim expressed confidence in the future but said it remains "mindful of the broader market backdrop and potential challenges".
"We continue to invest in innovation and product excellence, underpinned by our unified retailing platform, 'Unify.' The strides we've made this year are a direct reflection of the commitment and talent of our team, as well as the continued trust placed in us by our customers," CEO Athar said.
"As we look ahead, the board remains cautiously optimistic that our focus on margin enhancement and efficiency will support continued momentum and long-term value creation."
By Christopher Ward, Alliance News reporter
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