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Imaginatik – full-year results, “a year of good progress”. Really?

By Steve Moore | Tuesday 8 August 2017


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Innovation technology and consulting company Imaginatik (IMTK) has announced results for its year ended 31st March 2017, arguing “a year of good progress as we continue to position the business to capitalise on the growing market opportunity available”. The shares though are at a depressed 2p, so what’s the story?

The results show a pre-tax loss of £0.99 million on revenue of £3.92 million and then a further £0.45 million of investing spending in excess of depreciation + amortisation, with the year-end cash position £0.12 million. Additionally, receivables of £1.89 million compared to payables of £2.82 million and deferred income of £0.74 million.

Thus it was fundraising ahoy – though the company stated “to invest in sales and marketing, development of partnership channels and to support further investment in technology”. Hmmm!

The P&L compared to a prior year £1.11 million pre-tax loss on revenue of £3.89 million, with 22/30 clients renewing contracts compared to a prior year 28/35 and ‘New & expansion bookings’ of £1.9 million, comparing to a prior year £2.5 million. This really “a year of good progress”?!?

The company also talks of “a 'coming of age' for the innovation market and we have seen an acceleration in the maturing of the market” - and that “we remain optimistic about the group's growth prospects”. However, considering it reckons last year “good progress” and with it falling short of target in raising a gross just £1.45 million post the year-end, the stock remains on the bargepole list.


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