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Interim Results

Imagination revenues rise

06 December 2016 08:05

Imagination Technologies' revenues rose to £64.4m in the six months to the end of October - up from £60.8m last time as a consequence of the strong US dollar.

The group also announced that it had appointed Peter Hill as non-executive chairman with effect from 1 February. He is currently non-executive chairman of Keller Group and of Volution Group and a non-executive director of Essentra.

Financial highlights:

- Royalty revenue up 6% to £52.5m (H1 FY16: £49.6m)

- Total partner unit shipments 584m (H1 FY16: 584m) * Licensing revenue up 7% £11.8m (H1 FY16: £11.0m) - PowerVR licencing slow with deals moving to H2 - Ensigma revenue up 144% to £4.4m (H1 FY16: £1.8m) - significant deals signed with large customers

- Group returned to profitability * Continuing operations adjusted EBIT up 65% to £12.2m (H1 FY16: £7.4m)

* Continuing operations operating profit of £2.9m (H1 FY16: loss £5.5m) * £27.5m annual cost savings delivered - Restructuring nears completion - Pure and most of IMGsystems sold, IMGworks near disposal - Net debt of £40.8m (April 2016: £33.0m, October 2015: £35.4m), H1 outflows reflecting one-off restructuring costs and £5.2m exchange loss on dollar denominated debt. Continuing operations generated £9.5m cash from operating activities Chief executive Andrew Heath said: "We have successfully executed the restructuring programme, initiated last February, on time and in line with our expectations. The £27.5m of cost savings, identified earlier in the year, have been delivered - this has enabled the business to return to profitability.

"Our Ensigma unit achieved strong licence sales as we have made good progress in agreeing deals with a number of major customers. The underlying trading performance of the Group for H1 is in line with our expectations and we additionally benefited from the strong dollar.

"We are now in a much better position to exploit our leading technologies, across a range of increasing opportunities and execute our refreshed strategy.

"For our continuing operations, we remain on course to deliver an underlying trading performance for the year in line with our expectations and anticipate that we will continue to see an additional benefit from the strong US dollar."

At 8:05am: (LON:IMG) Imagination Technologies Group PLC share price was +24p at 244p

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