Investors Chronicle: “Super saving Technology ~ Imaginatik” – 24 Dec 08

 

Super saving Technology

Created: 24 December 2008

 

Written by: Malar Velaigam

 

Imaginatik saves companies money - lots of money

Specialist research group IDC says that the financial pressures felt by IT vendors and their customers will actually accelerate industry transformation that has been underway over the last several years. So despite the heavy cutbacks in the IT sector, IT spending will continue in areas where the benefits are clear.

 

 

True, companies have been slashing IT budgets and IT companies have, in turn, been issuing profit warnings. And whats more, with IDC predicting that global IT spend will slow to at least half of previous levels, stripping off more than $35bn (£23.6bn) of potential revenue from the market, the outlook looks fairly unfavourable.

But the silver lining remains, and companies that offer technologies which drive efficiencies and generate clear, and preferably short term benefits, are likely to emerge from the downturn relatively unscathed.

This explains why management at Aim-listed Imaginatik , which develops innovation and collaborative problem-solving software are not expecting any decline in demand for its solutions. The software gathers ideas generated by employees of large clients – corporates – and even calculates the value of these ideas, which not only saves clients money but also is a positive metric for winning new clients. In fact, Imaginatik’s software has saved its clients a combined £170m in the last 2 years. With cash on the balance sheet, and am strong sales pipeline and growing recurring revenue base, the group also makes for a solid acquisition target with shares currently trading at just 2.1p.

 

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Techinvest reviews Imaginatik’s interims – ‘continue to buy’ – Dec 08

From Techinvest – December 2008 – Editor Conor McCarthy

Imaginatik 2.13p

(IMTK; AIM, Tech Software & Services)

Turnover for the six months to September 30 was up 56% to £1.8m from the corresponding period last time. Annual recurring revenues more than doubled to £2.93m from £1.41m. The revenue split between geographies remained similar to the previous year, being 78% USA and 22% rest of world. Pre-tax loss was £0.25m compared to a loss of £0.47m in the first half of 2007. Cash and cash equivalents at period-end amounted to £0.5m (0.4p per share).

Imaginatik said that its blue-chip customer base continues to grow, with 10 new clients on annual contracts added during the first half and 8 new customers acquired on pilot projects. Average length of contracts continues to increase, including some 2 and 3 year commitments. The Company also reported increased up-sell into its existing customer base, with a quarter of existing customers purchasing additional licenses and services in the half.

The second half traditionally is stronger for Imaginatik. Despite the overall economic uncertainties, the Company said that with over £1.4m of expected renewals revenue to be booked in the second half, it is confident of a successful outcome to the current financial year.

Revenue visibility is increasing for Imaginatik and the balance sheet remains sound. Continue to buy.