itim Group PLC (AIM:ITIM) shares soared in early deals, rising as much as 19%, on a strong trading update supported by new contract wins and extensions.
“We are extremely pleased with the strong progress the business has made and are proud to report numbers that are significantly ahead of market expectations,” chief executive Ali Athar said in a statement.
Also today, the company announced that Michael Jackson has stepped down after a decade as chairman.
Digging into the financials, revenue for 2024 totalled £17.9 million, up from £16.1 million in the prior year.
Earnings (EBITA) was driven 260% higher, to £2.5 million, which was ahead of forecasts – whilst pre-tax profit was reported at £180,000 versus a £1.1 million loss in 2023. It ended the year with £3.8 million of cash.
The SaaS software firm in the retail sector highlighted that, during the year, it entered a five-year contract extension with toy retailer The Entertainer, securing a 30% increase in base subscription fees.
“The cost efficiencies we offer in the retail industry have driven increased demand for our products, reinforcing our position as a trusted partner in the sector,” Athar added.
“While we remain mindful of the broader market backdrop and potential challenges ahead, we are confident in our strategy, our momentum, and the long-term prospects of the business.”
itim will release its audited financial results in May.
In London, by mid-morning, the shares gave up some of their early gains to trade 5% higher at 43p – after initially changing hands for 48.8p.