Hybridian Small Cap Wrap 24-11-09 – Imaginatik
Posted by Bryan Mahoney on November 26, 2009
Imaginatik (IMTK) [8.25P/£13.14 million] Imaginatik provides software and services for “Collective Intelligence” or “Idea Management”, tracking the thought processes and tapping into the brain power of employees within a business, using the employees as an additional resource. Whilst this is still niche at the moment, Imaginatik expect it to be mainstream within two years.
In fact, as validation of the whole area, more than $40 million has been raised by mainly US businesses in the sector recently. In its interim results Imaginatik increased revenue by 26% to £2.3 million despite the troubled global economy, and signed multi-year deals giving visibility on future revenue.
The business traditionally has a better second half, and this is expected again this year, especially as it has increased spending on Sales and Marketing to drive the business forward. There has been a restructuring of the sales team too, giving each division specific focus, be it for new business or for upselling to existing customers.
The result of this should be seen in the year end results, as management expects it to take four to six months for new sales staff to become fully productive. Additionally there is a new version of the software about to be rolled out in January 2010, giving an improved, sleeker, better user experience. The shares have risen 78% since January (when they were just over 4.5p) but we still imagine it could be a great second half for Imaginatik!
