National Storage Mechanism | Additional information

29 September 2025

itim Group plc

("itim" or the "Company" and with its subsidiaries the Group")

Interim Results for the six months ended 30 June 2025

itim Group plc (AIM:ITIM), a SaaS-based technology company that enables store-based retailers to optimise their businesses to improve financial performance, is pleased to announce its unaudited interim results for the six months ended 30 June 2025.

Financial Highlights

·	Group revenue of £8.0m (HY24: £8.8m; FY24: £17.9m) , with booked recurring revenue of £6.6m (HY24: £6.6m; FY24: £13.4m) , representing 83% of Group revenue (HY24: 75%; FY24: 75%)
·	Annual recurring revenue ("ARR")¹ of £13.3m (HY24: £13.2m; FY24: £13.0m) , reflecting annual growth of 1% (HY24: 0%; FY24: -1%)
·	Adjusted EBITDA² of £0.4m (HY24: £1.2m; FY24: £2.5m) , with an adjusted EBITDA margin of 5% (HY24: 13%; FY24: 14%)
·	(Loss)/profit before tax of £(0.7)m (HY24: £(0.1)m; FY24: £0.2m)
·	Adjusted earnings per share³ of (1.6)p (HY24: 0.18p; FY24: 1.09p) ; basic earnings per share of (1.6)p (HY24: (0.27)p; FY24: 0.64p)
·	Net cash of £1.8m ( HY24: £3m; FY24: £3.8m)

Full year numbers quoted above are audited and half year numbers quoted above are unaudited

1. Annual recurring revenue

2. EBITDA has been adjusted to exclude share-based payment charges, exceptional items, along with depreciation, amortisation, interest and tax from the measure of profit.

3. The profit measure has been adjusted to exclude exceptional items and share option charge

Ali Athar, CEO of itim, commented: "I am pleased to report a resilient first half performance with good recurring revenue and positive EBITDA In a tough retail climate marked by rising costs and fragile consumer confidence. While project cycles have lengthened, we are seeing continued interest in our solutions as retailers seek smarter ways to drive efficiency and margin. Our upcoming AI platform, built on Agentic architecture, will further strengthen our offering, helping clients unlock value across sales, productivity and stock. As investment appetite returns, we are confident our pipeline will convert, reinforcing our role as a trusted partner in retail transformation."

Enquiries:

Itim Group plc

Ali Athar, CEO

Ian Hayes CFO

0207 598 7700

Zeus (NOMAD & Broker)

Katy Mitchell

Harry Ansell

Darshan Patel

0203 829 5000

IFC Advisory

Graham Herring

Florence Staton

0207 3934 6630

ABOUT ITIM

itim was established in 1993 by its founder, and current Chief Executive Officer, Ali Athar. itim was initially formed as a consulting business, helping retailers effect operational improvement. From 1999 the Company began to expand into the provision of proprietary software solutions and by 2004 the Company was focused exclusively on digital technology. itim has grown both organically and through a series of acquisitions of small, legacy retail software systems and associated applications which itim has redeveloped to create a fully integrated end to end Omni-channel platform.

CEO Statement

The Board is pleased to present the Group's half year results for 2025 in which the business reports good annual recurring revenue and a positive EBITDA.

The first six months of the year have been influenced by the cost pressures currently affecting the retail sector. These pressures have inevitably affected the pace of activity within our business, with a number of projects being pushed back, particularly those involving substantial investment commitments. Whilst the Group has not lost ongoing business, delays in decision-making have occurred and naturally impacted performance. At the same time, it is important to note that the interim results for 2024 included a significant contribution from large-scale project revenues generated through The Entertainers partnership with Tesco.

It is widely acknowledged that UK retailers are battling with what has been described as a "perfect storm" of cost pressures. These include an increasing burden of taxation and regulatory levies, continued upward pressure on wage and employment costs, and the broader impact of inflationary forces. Collectively, these factors are eroding margins, suppressing profitability, and forcing retailers to reassess both pricing strategies and investment priorities.

Consumer confidence, meanwhile, remains fragile. Persistent inflation, rising household debt and ongoing concerns over job security, have constrained discretionary spending. Retailers, faced with the difficult balance of managing higher costs while maintaining competitiveness, have passed some of these pressures onto consumers through increased pricing. As a result, demand dynamics on the high street remain subdued, and the outlook for the crucial Christmas trading period is uncertain. In turn, these uncertainties have led many retailers to defer or scale back investment in longer-term transformation programmes.

Within this difficult trading environment, itim's business model is considered an attractive proposition providing an effective way for retailers to mitigate rising costs and invest in operational efficiency and technology. Areas such as process automation, digital transformation, and supply chain optimisation are increasingly being recognised as essential levers for long-term resilience. Encouragingly, the Group is seeing evidence of retailers adopting these strategies offered by our products and services.

The current pipeline of new opportunities is encouraging and reflects both the relevance of itim's solutions and the confidence in its ability to deliver value. That said, given the current macro and retail environments, projects are taking longer to close, and some have been pushed back into later periods. In the short term, the Group remains disciplined in managing costs and has taken appropriate action to minimise the impact on profitability while protecting its capacity to deliver ensuring that the Group remains well positioned to respond to new levels of interest.

The Group is continuing its focus on machine learning and the use of advanced mathematics in building systems. This year, itim will be launching its AI platform based on an Agentic AI architecture, where a number of of 'agents' will sit on top of our UNIFY platform to help retailers identify opportunities to optimise sales, productivity, margin and stock.

In conclusion, while the present trading environment remains challenging the Group is experiencing increased levels of interest for its services. The Board is confident in its positioning within the marketplace with the need for retail technology that can drive profitability and business transformation being greater than ever. The group's proposition is highly aligned to the needs of retailers facing cost pressures, reinforcing its competitive position in the marketplace. itim is currently seeing its largest pipeline of opportunities in its history, and as investment cycles recover, the board is confident of converting a number of these into increased revenues, albeit with some uncertainty around the exact timing.

Consolidated Statement of Comprehensive Income

for the half-year ended 30 June 2025

		Six month period ended 30 June 2025	Six month period ended 30 June 2024	Year ended 31 December 2024
		Unaudited	Unaudited	Audited
	Notes	£000	£000	£000
Continuing operations
Revenue		7,998	8,835	17,908
Cost of sales		(5,343)	(5,451)	(10,724)
Gross profit		2,655	3,384	7,184

Administrative expenses		(2,277)	(2,233)	(4,716)
EBITDA		378	1,151	2,468

Amortisation of intangible assets		(751)	(702)	(1,400)
Depreciation		(30)	(30)	62
Depreciation of leased assets		(262)	(299)	(594)
Profit/(Loss) from operations		(665)	120	412

Exceptional		-	(141)	(141)
Other interest - right of use assets		(42)	(52)	(96)
Loss before taxation		(707)	(73)	175

Taxation		207	(12)	25
Loss for the period/year		(500)	(85)	200

Other comprehensive income
Exchange differences on retranslation of foreign operations		82	(57)	(113)

Total comprehensive income for the period/year net of tax		(418)	(142)	87

Earnings per share
Basic	2	(1.60p)	(0.27p)	0.64p
Diluted	2	(1.60p)	(0.27p)	0.57p

Consolidated Statement of Financial Position

as at 30 June 2025

	As at 30 June 2025	As at 30 June 2024	As at 31 December 2024
	Unaudited	Unaudited		Audited
	£000	£000		£000

Non-current assets
Intangible assets	11,332	11,163		11,229
Plant and equipment	127	316		254
Right-of-use assets	690	938		770
Deferred tax	2	-		-
	12,151	12,417		12,253

Current assets
Trade and other receivables	4,898	4,062		3,636
Cash and cash equivalents	1,837	2,976		3,795
	6,735	7,038		7,431

Total assets	18,886	19,455		19,684

Current liabilities
Trade and other payables	(6,185)	(6,146)		(6,273)
Right-of-use liability	(283)	(308)		(284)
	(6,468)	(6,454)		(6,557)

Non-current liabilities
Trade and other payables due in more than one year	(73)	(248)		(183)
Right-of-use liability	(459)	(669)		(535)
Deferred tax	(665)	(697)		(793)
	(1,197)	(1,614)		(1,511)

Total liabilities	(7,665)	(8,068)		(8,068)

Net Assets	11,221	11,387		11,616

Capital and reserves
Called up share capital	1,571	1,561		1,561
Share premium account	7,411	7,398		7,398
Share options reserve	513	513		513
Capital redemption reserve	1,103	1,103		1,103
Foreign exchange reserve	63	37		(19)
Retained profit/(loss)	560	775		1,060
Shareholders' funds	11,221	11,387		11,616

Consolidated Statement of Cash Flow

for the half-year ended 30 June 2025


	Six month period ended 30 June 2025	Six month period ended 30 June 2024	Year ended 31 December 2024
	Unaudited	Unaudited	Audited
	£000	£000	£000
Cash flows from operating activities
Profit after taxation	(500)	(85)	200
Adjustments for:
Taxation	(207)	12	(25)
Other interest on leases	42	52	96
Amortisation and depreciation	1,043	1,031	2,056
Cash flows from operations before working capital changes	378	1,010	2,327
Movement in trade and other receivables	(1,115)	1,397	1,528
Movement in trade and other payables	(90)	(237)	(55)

Cash generated from operations	(827)	2,170	3,800
Corporation tax	(28)	(18)	377
Net cash flow from operating activities	(855)	2,152	4,177
Cash flow from investing activities
Capital expenditure on intangible assets	(793)	(797)	(1,601)
Purchase of plant and equipment	(5)	(6)	(61)
Net cash flow from investing activities	(798)	(803)	(1,662)

Cash flow from financing activities
Interest repayments	(30)	-	(50)
Payment of lease liabilities	(303)	(293)	(589)
Share capital issued	23	-	-
Net cash flow from financing activities	(310)	(293)	(639)

Net increase/(decrease) in cash and cash equivalents	(1,963)	1,056	1,876

Cash and cash equivalents at beginning of year	3,795	1930	1,930
Exchange (losses)/gains on cash and cash equivalents	5	(10)	(11)

Cash and cash equivalents at end of year	1,837	2,976	3,795

Consolidated Statement of Changes in Equity

as at 30 June 2025

	Share capital	Share Premium	Share option reserve	Capital Redemption Reserve	Foreign exchange reserve	Retained Earnings	Total Equity
	£000	£000	£000	£000	£000	£000	£000

At 1 January 2025	1,561	7,398	513	1,103	(19)	1,060	11,616

Comprehensive income for the year	-	-	-	-	-	(500)	(500)
Foreign exchange movement	-	-	-	-	82	-	82
Total comprehensive income	-	-	-	-	82	(500)	(418)
Shares issued in period	10	13	-	-	-	-	23
At 30 June 2025 (unaudited)	1,571	7,411	513	1,103	63	560	11,221
At 1 January 2024	1,561	7,398	513	1,103	94	860	11,529

Comprehensive income for the year	-	-	-	-	-	(85)	(85)
Foreign exchange movement	-	-	-	-	(57)	-	(57)
Total comprehensive income	-	-	-	-	(57)	(85)	(142)
At 30 June 2024 (unaudited)	1,561	7,398	513	1,103	37	775	11,387
At 1 January 2024	1,561	7,398	513	1,103	94	860	11,529
Comprehensive income for the year	-	-	-	-	-	200	200
Foreign exchange movement	-	-	-	-	(113)	-	(113)
Total comprehensive income	-	-	-		(113)	200	87

At 31 December 2024 (audited)	1,561	7,398	513	1,103	(19)	1,060	11,616

Notes to the Financial Information

1. General information

itim Group plc is a public limited Company ("Company") incorporated in the United Kingdom under the Companies Act 2006 (registration number 03486926). The Company is domiciled in the United Kingdom and its registered address is 2^nd Floor, Atlas House, 173 Victoria Street, London SW1E 5NH. The Company's ordinary shares are admitted to trading on the AIM market of the London Stock Exchange ("AIM").

The Group's principal activities have been the provision of technology solutions to help clients drive improvements in efficiency and effectiveness.

The Group's interim report and accounts for the six months ended 30 June 2025 have been prepared using the recognition and measurement principles of International Financial Reporting Standards and Interpretations as endorsed by the European Union (collectively "Adopted IFRS").

These interim financial statements for the six months ended 30 June 2025 have been prepared in accordance with the AIM Rules for Companies and should be read in conjunction with the financial statements for the year ended 31 December 2024, which have been prepared in accordance with IFRS as adopted by the European Union. The interim report and accounts do not include all the information and disclosures required in the annual financial statements.

The interim report and accounts have been prepared on the basis of the accounting policies, presentation and methods of computation as set out in the Group's December 2024 Annual Report and Accounts, except for those that relate to new standards and interpretations effective for the first time for periods beginning on (or after) 1 January 2025, and will be adopted in the 2024 annual financial statements.

The interim report and accounts do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. These interim financial statements were approved by the Board of Directors on 24^th September 2025. The results for the six months to 30 June 2025 and the comparative results for the six months to 30 June 2024 are unaudited. The figures for the period ended 31 December 2024 are extracted from the audited statutory accounts of the Group for that period.

The Directors believe that a combination of the Group's current cash, projected revenues from existing and future contracts will enable the Group to meet its obligations and to implement its business plan in full. Inherently, there can be no certainty in these matters, but the Directors believe that the Group's internal trading forecasts are realistic and that the going concern basis of preparation continues to be appropriate.

2. Earnings per share

Basic and diluted (loss)/earning per share is calculated by dividing the (loss)/profit attributable to owners of the parent by the weighted average number of ordinary shares in issue during the period. For the avoidance of doubt the deferred shares have been excluded as they have no rights to profits or capital. The Company's share options have a dilutive effect over the two year period.

	6 months ended 30 June 2025 Unaudited	6 months ended 30 June 2024 Unaudited	Year ended 31 December 2024 Audited
	£000	£000	£000

Profit/(Loss) after tax for the year	(500)	(85)	200
Exceptional items	-	141	141
Share option charge	-	-	-
Adjusted loss after tax for the year	(500)	56	341

Weighted average number of shares
Basic - 000	31,304	31,211	31,211
Potentially dilutive share options - 000	3,546	3,657	3,657
Diluted average number of shares - 000	34,850	34,868	34,868

Earnings per share:
Basic - pence on continuing operations	(1.60)	(0.27)	0.64
Diluted - pence on continuing operations	(1.60)	(0.27)	0.57

Adjusted earnings - Basic - pence on continuing operations	(1.60)	0.18	1.09
Adjusted earnings - Diluted - pence on continuing operations	(1.60)	0.16	0.98