Shares in itim Group PLC (AIM:ITIM) fell 21% on Tuesday as investors reacted cautiously to the company’s full-year results, despite a marked improvement in profitability and a return to pre-tax profit.
The sharp sell-off suggests the market remains wary about the outlook, even as management struck a guardedly optimistic tone.
The software-as-a-service firm, which helps traditional retailers boost efficiency, posted a pre-tax profit of £0.2 million for 2024, swinging from a £1.1 million loss the previous year.
Revenues rose 11% to £17.9 million, while adjusted EBITDA jumped 260% to £2.5 million. Margins improved to 14%, up from 4%, and net cash nearly doubled to £3.8 million.
The results point to stronger commercial execution and tighter cost control, with adjusted earnings per share moving into positive territory at 0.64 pence.
However, annual recurring revenue edged down slightly to £13 million from £13.2 million, raising questions over the pace of growth in long-term, subscription-based income.
The stock was down 12p at 44p.