Imaginatik Trading Update - RNS - 13 Feb 2008

RNS Number:8890N Imaginatik PLC 13 February 2008

13 February 2008
                                  Imaginatik plc
                      (”Imaginatik” or the ”Company”)
                                 Trading Update
Imaginatik plc (AIM: IMTK), a leading provider of collaborative innovation and problem-solving software and processes announces today that an improved trading performance in the second half of the year should result in a profit for this period. This outcome is expected to strengthen the balance sheet and provide a positive operating cash flow for the second half year. The Company’s recurring revenue base continues to build well and will help underpin our operations into the next financial year.

In view of the weak trading experienced in the first half of the financial year and not withstanding the much improved performance in the second half year, the Company is unlikely to reach the market forecast of £4.4m of revenue for the year to 31 March 2008. Overheads continue to be tightly contained. As a result the level of business required to reach break-even for the full year has been significantly reduced.

Imaginatik also announces today that it is in final negotiations with a major customer which may or may not lead to it becoming a strategic investor in the Company. The Board will provide additional information to the market as soon as the agreement is concluded.

Mark Turrell, CEO of Imaginatik plc, commented, “I am pleased to see the Company’s performance improving after a difficult first nine months as a public company. We now have a great deal of momentum within the business, our pipeline is strong and our recent presence at the World Economic Forum in Davos will help accelerate the current level of activity. We believe having a significant strategic investor on board would be extremely positive for Imaginatik and its shareholders and we will provide further information in due course.”

For further information please contact:
Imaginatik plc                                Tel: +44 (0)20 7917 2975
Mark Turrell, CEO / Shawn Taylor, CFO
WH Ireland                                    Tel: +44 (0)121 265 6330
Tim Cofman/Katy Birkin

Investor relations and UK media
ICIS                                          Tel: +44 (0)20 7651 8688
Tom Moriarty / Caroline Evans Jones

About Imaginatik

Imaginatik is the leading provider of Collaborative Innovation and Problem Solving software and process to the world’s leading companies. More than 100 clients, including Hewlett-Packard, IBM and Pfizer, rely on Imaginatik’s software, consulting and research to enable their best-of-breed innovation activities.

Imaginatik’s software and consulting services have helped clients discover significant sources of additional revenue, as well as tangible cost savings, process improvements and increased product pipeline. Imaginatik is also committed to developing strategic solutions in the field of innovation, working with academic institutions such as the London Business School and the Cass School of Business, London, as well as leading practitioners of corporate innovation.

For further information please visit www.imaginatik.com.
                      This information is provided by RNS
            The company news service from the London Stock Exchange
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