itim Group (LON:ITIM), a leading SaaS and services provider enabling omni-channel retail transformation, has posted an impressive set of full-year results for 2024. According to the latest research from Zeus Capital, the company delivered a significant improvement in profitability, strong cash generation, and secured major contract wins that validate its market-leading platform.
For the year ended 31 December 2024, itim reported an 11% increase in revenues to £17.9 million. This growth reflects the company’s strategic shift towards higher-margin service and project revenues, while maintaining steady annual recurring revenues (ARR). EBITDA rose sharply to £2.5 million, more than tripling from £0.7 million the previous year, while adjusted profit before tax swung to a positive £0.3 million – the company’s first full-year profit since its IPO.
Operational execution also translated into a doubling of net cash to £3.8 million, providing a solid foundation for future growth. Notably, gross margins improved significantly from 31.3% to 40.1%, underpinned by the increased contribution from project work and operational leverage on fixed costs.
itim’s momentum was further strengthened by a string of contract wins in the second half of the year. Highlights include a five-year extension with long-standing customer The Entertainer, securing base subscription rates more than 30% higher than previous levels. Other notable agreements include a five-year renewal with Majestic Wine, a major contract with a fashion retailer, and a new five-year deal with Brazilian retailer Assai Atacadista.
Looking ahead, Zeus Capital maintains its forecasts, reflecting confidence in itim’s recurring revenue base and recent contract successes. While acknowledging that macroeconomic conditions may impact the pace of new large subscription wins, Zeus remains positive about itim’s positioning.
In the words of Research Analyst John Cummins, “With a strong recurring revenue base, enhanced by a string of significant new contract wins, itim is now well positioned to continue to grow the user base of its comprehensive retail platform. Trading on a c.50% discount to peer group FY25 EV/Revenue multiples, we see significant upside in the shares as the balance sheet strength and progress of the business is increasingly recognised.”
On a Final Note
itim Group’s strategic focus on profitable service revenues, operational excellence, and customer retention has set the stage for continued growth in 2025 and beyond. With a robust balance sheet, positive cashflows, and increasing market validation, the outlook for this innovative retail technology provider appears encouraging.
