Panmure Gorden Analyst note – 17 Nov 2008

Imaginatik (IMTK.L, Mkt Cap £3.8m)

We had a company meeting with CEO Mark Turrell and CFO, Shawn Taylor, following interim results. The results themselves showed good progress with highlights including; turnover up 56% to £1.80m –following 10 new clients signed on annual contracts and 8 new customers on pilots – the operating loss was reduced to £0.25m down from £0.47m loss yoy, annual recurring revenues up over 100% to £2.93m. We note that net cash is £494,000 up strongly from £108,000 yoy – but did benefit from £237,000 in from a placing. Our key criticism is that the numbers are just too small to be attract the mainstay of institutional investors. That said we are impressed by the way Imaginatik is able to sign up larger corporates. ‘Sales’ is always a key area (of weakness) for smaller companies and we note that Imaginatik has appointed a new VP of Global Sales and increased sales team- it is looking to increase sales headcount to 9 by the end of cal2008 – it should, in our view, take c6 months before there is any revenue uptick from this investment. As the downturn gathers pace the sales focus should move from ‘innovation’ to ‘cost savings’ and pleasingly we note that Imaginatik has saved its customers “at least £170m” over the past two years – illustrating that it is already positioning itself for a change in buyers concerns – it needs to ensure that it is in budget holders’ minds as the source of cost reduction. Also of note is the IBM sales relationship. Looking ahead Imaginatik has £1.4m of expected renewals (renewals are H2 weighted) revenue to be booked in H2 and given this, the  new business pipeline (which it describes as “strong”) combined with currency translation gains – 78% of revenue from the US – the company is confident of a successful outcome. We like the area, the ‘what it does’ stacks up nicely with key buying and technology trends, with the sales emphasis targetting in-house and IBM channel sales we remain impressed that the company is configured correctly to deliver continued growth. The management team – CEO and FD – both look capable of delivering value for shareholders.

 

 

 

George O’Connor 

Software & IT Services analyst

Panmure Gordon & Co

Moorgate Hall 

155 Moorgate 

London 

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Panmure Gordon analyst comments on Imaginatik – 7 Nov 08

From Panmure Gordon newsletter – from analyst George O’Connor – published Fri 7 Nov [Note: he was an invited guest at our user forum].

Imaginatik (IMTK.L, Mkt Cap £3.9m)

We spent a few hours at the Imaginatik European end user conference yesterday. In our view this was a well-attended event with participants from a range of blue chip companies. The event is part technology showcase, user forum but also a feed for Imaginatiks sales pipeline. We admit to being fanboys of collaborative platforms –it is early in the adoption cycle but for us there is much momentum around concepts like ‘crowd sourcing’ and tools to enable distributed workforces and we still have along held view about geographic comparative advantage in the corporate setting. Indeed, remembering from our education there are good illustrations of working collaboration – think peer review – and look into industries like engineering and manufacturing (think Aveva’s PLM offer) and there are many commercial illustrations too. Disappointingly, the company investment case is stymied as Imaginatik is too small and too illiquid for the mainstay of institutional investors. While we admit to being concerned about the outlook for ‘innovation’ in a downturn we are more relaxed given the company’s ‘heavy’ emphasis on ‘process management’ – investors with memories stretching back to the formation of the business process re-engineering (BPR) movement are aware that downturns are fertile for companies preaching a ‘do it this way message’. There are lots of positives in Imaginatik – producising the CEO remains an opportunity and we still think that the front end – or addressing user generated content – is still also a big opportunity. To remind Imaginatik is a leader in the provision of Innovation and Collaborative Problem Solving software and processes. The ongoing client base includes Nokia, Chevron, Pfizer, Kraft, Cargill, GE Aviation and Lexmark. In truth, Imaginatik is a useful play on IBM websphere and Lotus groupware technology. The ‘smarts’ should be the back end process. We like the practical use of industry standard tools and solving a business need and the tactic of working with HR departments on general Human Capital Management (HCM) approach. While this is an interesting niche we highlight that groupware tools are more pervasive, as indeed are collaboration and project management tools including ‘out of the box’ from Microsoft. In addition companies are increasingly using social networks in an enterprise setting. 

Growth Company Investor – 01 Oct 2008 – Directors’ Dealings

Directors’ Dealings – Kathleen Hall

 

Turrell tucks into Imaginatik

Directors operating in the IT sector are also taking advantage of low share prices, as Mark Turrell, chief executive of software provider Imaginatik, has increased his stake in the company to 59.34 per cent (including the shares owned by his wife, Dr Yvonne Lindow). This through the purchase of 47,674 shares at 4.20p, just below the current market price of 4.25p, down from a 52-week peak of 6.38p  

RNS Announcement – Imaginatik plc – Trading Update – 14 Oct 2008

RNS Number : 7209F Imaginatik PLC 14 October 2008

14 October 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, is pleased to announce that it has seen a strong sales performance in the six months to 30 September 2008, with revenues in line with expectations.

The Company has very limited exposure to the financial services industry and we have yet to see any impact from the financial crisis on the level of demand for our software and services. Whilst we cannot forecast the effects of the situation in the financial markets, based on a strong pipeline of opportunities, the directors remain cautiously confident that this level of trading will continue into the second half of the financial year. We will also continue to keep a tight rein on our cost base.

The Company expects to release its Interim results for the six months ended 30 September 2008 in November 2008.

For further information please contact:
Imaginatik plc Tel: 020 7917 2975

Mark Turrell, CEO / Shawn Taylor, CFO 
WH Ireland Limited Tel: 0121 265 6330

Tim Cofman / Katy Birkin 
ICIS Tel: 020 7651 8688

Caroline Evans-Jones / Mike Smith

About Imaginatik

Imaginatik is the leading provider of innovation and collaborative problem solving software and process to the world’s leading companies. More than 100 clients rely on Imaginatik’s software, consulting and research to enable their best-of-breed innovation activities.

Named as a World Economic Forum Technology Pioneer for 2008 and a finalist for the IBM Lotus Awards 2008 in the Best Industry Solution category, 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 http://www.imaginatik.com

This information is provided by RNS The company news service from the London Stock Exchange

 

END

 

TSTUOVORWBRRAAA

Techinvest – 01 October 2008 – contract win

Imaginatik 4.25p

(IMTK; AIM, Tech Software & Services) 

The Company has signed a three-year contract to provide its core software. Idea Central, to Reed Elsevier. An annual licence contract with Bombardier was also concluded. Imaginatik also said it raised £0.22m before expenses through a conditional placing of 5.5 million shares at 4p to institutions. The proceeds will be invested in the sales operation in Britain and the United States to increase follow-through sales to major clients.

The deals underline the significant growth potential with this stock. Continue to buy. 

Source: Techinvest magazine, 01 Oct 2008, page 2

Collaborative Innovation Management Software Firm Named 2008 FiReStarter; Imaginatik to be featured at 2008 Future in Review (FiRe) Technology Conference

Collaborative Innovation management software leader, Imaginatik, has been selected as a 2008 FiReStarter company by the Strategic News Service, host of the influential Future in Review (FiRe) technology conference. The FiReStarter selection marks the third major accolade by an influential global confab this year. The World Economic Forum named Imaginatik a “Technology Pioneer 2008,” the only innovation management firm among the recipients. Also this year, Imaginatik’s Idea Central innovation management software was a finalist in the Best Industry Solution category at the 13th annual IBM Lotus Awards. Boston, MA and Winchester, UK (PRWEB) February 28, 2008 — Imaginatik, plc Imaginatik (AIM:IMTK) today announced that it has been named a 2008 FiReStarter company by the Strategic News Service, host of the influential Future in Review (FiRe) technology conference Future in Review.

“Imaginatik is honored to be selected as a FiReStarter company,” said Mark Turrell, CEO and cofounder of the leading collaborative innovation software and idea management firm. “We are looking forward to playing an active role in this year’s Future in Review conference,” Turrell said. The Economist has called Future in Review “The best technology conference in the world.”

We are proud to have Imaginatik as one of our FiReStarter companies

Hosted by Mark Anderson, founder and publisher of the Strategic News Service, the FiRe Conference exposes world experts and participants to new ideas in a manner that produces an accurate portrait of the future in technology, including nanotechnology, space travel, biology and medical diagnostics, policy, and other fields that contribute to technology outcomes. “We are proud to have Imaginatik as one of our FiReStarter companies,” said Mark Anderson. “FiReStarter companies are selected because of the difference they will make in the next five years in terms of global commerce and technology,” Anderson said.

The FiReStarter selection marks the third major accolade by an influential global confab this year. The World Economic Forum named Imaginatik a “Technology Pioneer 2008,” the only innovation management firm among the recipients. Also this year, Imaginatik’s Idea Central innovation management software was a finalist in the Best Industry Solution category at the 13th annual IBM Lotus Awards. This year’s Future in Review conference will take place May 20 – 23 at the Hotel Del Coronado in San Diego California.

Imaginatik’s Idea Central software enables organizations to tap into the “collective genius” of their employees within and across divisions in order to drive innovation and collaborate on product development, problem solving and process improvement. Imaginatik’s clients and partners include Cargill, Chevron, Hewlett Packard, IBM and Pfizer.

About Imaginatik

Imaginatik is the leading provider of Innovation and Collaborative Problem-Solving software and processes to the world’s top companies. More than 100 clients rely on Imaginatik’s software, consulting and research to enable their best-of-breed innovation activities. Imaginatik is a World Economic Forum named Imaginatik a Technology Pioneer 2008; the only innovation management provider selected for this prestigious award.

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 Imaginatik.

About Future in Review
Please visit Future in Review

About the Strategic News Service
Please visit Strategic News Service

Media Contact:
US: Adam Dubitsky, 202-652-2250
UK and Investor Relations: Tom Moriarty or Caroline Evans Jones, ICIS, 44-020-7651-8688