Interim Results

itim Group PLC

22 September 2026

22 September 2026

itim Group plc

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

Interim Results for the six months ended 30 June 2026

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 2026.

Financial Highlights

	Group revenue of £8.6m (HY25: £8.0m; FY25: £17.5m), with booked recurring revenue of £7.4m (HY25: £6.6m; FY25: £13.5m), representing 86% of Group revenue (HY25: 83%; FY25: 77%)
	Annual recurring revenue ("ARR")¹ of £13.6m (HY25: £13.3m; FY25: £14.2m), reflecting annual growth of 2% (HY25: 1%; FY25: 9%)
	Adjusted EBITDA² of £1.3m (HY25: £0.4m; FY25: £1.7m), with an adjusted EBITDA margin of 15% (HY25: 5%; FY25: 10%)
	Profit before tax of £0.2m (HY25: £(loss 0.7)m; FY25: £(loss 0.5)m)
	Earnings per share of 1.07p (HY25: (1.60)p; FY25: (0.81)p); diluted earnings per share of 1.03p (HY25: (1.60)p; FY25: (0.81)p)
	Net cash flow from operating activities of £2.1m (HY25: £(0.9)m; FY25: £0.6m)
	Net cash of £3.1m (HY25: £1.8m; FY25: £2.6m)
	Net assets of £11.8m (HY25: £11.2m; FY25: £11.5m)

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.

Ali Athar, CEO of itim, commented: "I am pleased to report a much stronger first half, with the Group returning to profit and growing our recurring revenue base. Despite a UK retail market that remains under pressure, our existing customers continued to back us, and our operations in South America performed particularly well. The launch of itimAIQ during the period marks an important step for us in AI, and we enter the second half with a growing pipeline and real confidence in where the business is heading."

Enquiries:

itim Group plc	Ali Athar, CEO Ian Hayes, CFO	0207 598 7700
Zeus (NOMAD & Broker)	Katy Mitchell Harry Ansell	0203 829 5000
IFC Advisory	Graham Herring Florence Staton	020 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.

itim Group Interim Results 2026

CEO Statement

The Board is pleased to report a robust trading performance with a return to profitability and encouraging onward momentum despite a difficult trading environment. Conditions across the UK retail sector have remained challenging over the six months to 30 June 2026, with retailers continuing to absorb the impact of higher employment costs following last year’s increases to national insurance contributions, the national living wage and business rates. Broader economic growth has remained subdued, and continued pressure on the cost of living has constrained consumer spending, both of which have weighed on retailer profitability and, in turn, on investment appetite across our customer base.

Against this backdrop, the Group’s performance in the period reflects both the resilience of the recurring revenue model and early signs of a more constructive trading environment. Group revenue grew to £8.6m, with booked recurring revenue increasing to £7.4m and representing 86% of Group revenue, underlining the strength and stability of the subscription base. Adjusted EBITDA increased significantly to £1.3m, delivering a 15% margin, and the Group returned to profit before tax of £0.2m, with basic earnings per share of 1.07p. Cash generation was particularly encouraging, with net cash flow from operating activities of £2.1m, a marked improvement on the same period last year, and the Group ending the period with a cash balance of £3.1m.

The Group’s balance sheet strengthened further over the period. Net assets increased to £11.8m, and we also took the opportunity to repay in full the £0.5m loan facility drawn in 2025, leaving the Group with a stronger and simpler balance sheet as it looks towards the remainder of the year.

Within the UK, itim saw one large customer fall into administration, which was partially offset by the addition of an additional new client win, and the business has continued to be sustained principally by its existing customer base as retailers remain cautious on new investment. Encouragingly, our South American operations delivered a much stronger performance over the period, reflecting the benefits of the continued geographic diversification strategy.

Whilst the Board has not seen a wholesale change in the trading environment, the Group’s pipeline of prospects continues to build, and the Board is encouraged that converting even a small number of new names from this pipeline would be significant in terms of future sales and profit growth. The second half of the year will be an important test of the extent to which this pipeline converts into confirmed business.

itim-UNIFY and our competitors

Retailers today generally face a choice of buying one large ERP from a major software provider such as Microsoft, SAP or Oracle, and integrating a number of smaller, specialist tools to sit around the ERP. In the current climate, fewer retailers want to commit to the scale of spending this requires. What most are looking for instead is a real improvement in productivity and business benefits, particularly within their head offices.

itim-UNIFY is well placed to cater for these changes. It brings everything a retailer needs into one system and does so at one of the lowest costs in the market. Based on results already achieved by our customers, retailers using itim-UNIFY have cut IT costs, reduced head office staff numbers, cut stock levels, and improved margins. Taken together, these are real, proven ways for retailers to improve their profitability, and itim will keep making this case to prospective clients through the second half of the year.

Investment in AI

The launch of itimAIQ during the period is an important step in itim’s AI plans. The Group is focused on solving real, everyday retail problems, and it has already shown how AI can automate and improve tasks that matter to retailers. We are retail people first, and we believe that experience will set us apart as the rest of the market turns its attention to AI.

At the centre of this is a platform built specifically to manage the information retailers’ AI systems rely on. We believe this will set us apart as retailers begin to use AI that can act on its own, while keeping full ownership of their data and their relationships with customers.

I would like to thank our customers and employees for their continued patience and resilience through what remains a challenging period for the sector. We remain confident in the Group’s long-term prospects.

Consolidated Statement of Comprehensive Income

for the six months ended 30 June 2026

		Six-month period ended 30 June 2026	Six-month period ended 30 June 2025	Year ended 31 December 2025
		Unaudited	Unaudited	Audited
	Notes	£000	£000	£000
Continuing operations
Revenue		8,599	7,998	17,507
Cost of sales		(5,195)	(5,343)	(10,941)
Gross profit		3,404	2,655	6,566
Administrative expenses		(2,144)	(2,277)	(4,840)
EBITDA		1,260	378	1,726
Amortisation of intangible assets		(857)	(751)	(1,510)
Depreciation		(38)	(30)	(59)
Depreciation of leased assets		(142)	(262)	(423)
Profit/(Loss) from operations		223	(665)	(266)
Exceptional Finance costs		- (27)	- -	(106) (16)
Other interest – right of use assets		(29)	(42)	(76)
Profit/(Loss) before taxation		167	(707)	(464)
Taxation		169	207	209
Profit/(Loss) for the period/year		336	(500)	(255)
Other comprehensive income
Exchange differences on retranslation of foreign operations		(42)	82	131
Total comprehensive income/(Loss) for the period/year net of tax		294	(418)	(124)
Earnings per share
Basic	2	1.07p	(1.60p)	(0.81p)
Diluted	2	0.96p	(1.60p)	(0.81p)

Consolidated Statement of Financial Position

as at 30 June 2026

		As at 30 June 2026	As at 30 June 2025	As at 31 December 2025
		Unaudited	Unaudited		Audited
		£000	£000		£000
Non-current assets
Intangible assets		11,278	11,332		11,410
Plant and equipment		102	127		118
Right-of-use assets		468	690		550
Deferred tax		4	2		4
		11,852	12,151		12,082
Current assets
Trade and other receivables		4,271	4,898		4,989
Cash and cash equivalents		3,137	1,837		2,637
		7,408	6,735		7,626
Total assets		19,260	18,886		19,708
Current liabilities
Trade and other payables		(6,423)	(6,185)		(6,920)
Right-of-use liability		(300)	(283)		(283)
		(6,723)	(6,468)		(7,203)
Non-current liabilities
Trade and other payables due in more than one year		(10)	(73)		(19)
Right-of-use liability		(222)	(459)		(322)
Deferred tax		(496)	(665)		(649)
		(728)	(1,197)		(990)
Total liabilities		(7,451)	(7,665)		(8,193)
Net Assets		11,809	11,221		11,515
Capital and reserves
Called up share capital		1,571	1,571		1,571
Share premium account		7,411	7,411		7,411
Share options reserve		513	513		513
Capital redemption reserve		1,103	1,103		1,103
Foreign exchange reserve		70	63		112
Retained profit/(loss)		1,141	560		805
Shareholders’ funds		11,809	11,221		11,515

Consolidated Statement of Cash Flow

for the six months ended 30 June 2026

		Six-month period ended 30 June 2026	Six-month period ended 30 June 2025	Year ended 31 December 2025
		Unaudited	Unaudited	Audited
		£000	£000	£000
Cash flows from operating activities
Profit after taxation		336	(500)	(255)
Adjustments for:
Taxation Finance costs		(168) 19	(207)	(209) 16
Other interest on leases		29	42	76
Amortisation and depreciation		1,044	1,043	1,992
Cash flows from operations before working capital changes		1,260	378	1,620
Movement in trade and other receivables		810	(1,115)	(1,185)
Movement in trade and other payables		133	(90)	171
Cash generated from operations		2,203	(827)	606
Corporation tax		(71)	(28)	(32)
Net cash flow from operating activities		2,132	(855)	574
Cash flow from investing activities
Capital expenditure on intangible assets		(750)	(793)	(1,595)
Purchase of plant and equipment Issue share capital		(23) -	(5) 23	(42) 23
Net cash flow from investing activities		(773)	(775)	(1,614)
Cash flow from financing activities
Interest repayments		(58)	(30)	(40)
Payment of lease liabilities		(289)	(303)	(584)
Loan drawdown Principal repayment of loan		(500)		500
Net cash flow from financing activities		(847)	(333)	(124)
Net increase/(decrease) in cash and cash equivalents		512	(1,963)	(1,164)
Cash and cash equivalents at beginning of period		2,637	3,795	3,795
Exchange (losses)/gains on cash and cash equivalents		(9)	5	6
Cash and cash equivalents at end of period		3,137	1,837	2,637

Consolidated Statement of Changes in Equity

as at 30 June 2026

	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 2026	1,571	7,411	513	1,103	112	805	11,515
Comprehensive income for the period	-	-	-	-	-	336	336
Foreign exchange movement	-	-	-	-	(42)	336	294
Total comprehensive income	-	-	-	-	(42)	336	294
At 30 June 2026 (unaudited)	1,571	7,411	513	1,103	70	1,141	11,809
At 1 January 2025	1,561	7,398	513	1,103	(19)	1,060	11,616
Comprehensive income for the period	-	-	-	-	-	(500)	(500)
Foreign exchange movement	-	-	-	-	82	-	82
Total comprehensive income	-	-	-	-	82	(500)	(418)
Shares issued in the period	10	13	-	-	-	-	23
At 30 June 2025 (unaudited)	1,571	7,411	513	1,103	63	560	11,221
At 1 January 2025	1,561	7,398	513	1,103	(19)	1,060	11,616
Comprehensive income for the period	-	-	-	-	-	(255)	(255)
Foreign exchange movement	-	-	-	-	131	-	131
Total comprehensive income					131	(255)	(124)
Shares issued in the period	10	13					23
At 31 December 2025 (audited)	1,571	7,411	513	1,103	112	805	11,515

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 2nd 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 2026 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 2026 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 2025, 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 2025 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 2026 and will be adopted in the 2026 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 21 September 2026. The results for the six months to 30 June 2026 and the comparative results for the six months to 30 June 2025 are unaudited.The figures for the period ended 31 December 2025 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 and 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)/earnings 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. 2,520,000 of the Company’s share options have a dilutive effect at 30th June 2026.

	6 months ended 30 June 2026 Unaudited	6 months ended 30 June 2025 Unaudited	Year ended 31 December 2025 Audited
	£000	£000	£000
Profit/(Loss) after tax for the period	336	(500)	(255)
Exceptional items	-	-	106
Share option charge	-	-	-
Adjusted profit/(loss) after tax for the period	336	(500)	(149)
Weighted average number of shares
Basic - 000	31,416	31,304	31,361
Potentially dilutive share options – 000	1,256	3,546	3,478
Diluted average number of shares – 000	32,672	34,850	34,839
Earnings per share:
Basic – pence on continuing operations	1.07	(1.60)	(0.81)
Diluted – pence on continuing operations	1.03	(1.60)	(0.81)

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