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Annual Results

Imagination adjusted operating profits jump

04 July 2017 07:23

Imagination Technologies Group's adjusted operating profit for continuing operations rose by approximately three times to £29.2m in the year ended 30 April (2016: £10.5m).

Group revenue from continuing operations rose by 19% to £145.2m with licensing revenue up by 82% to £33.9m and royalty revenue up 8% at £111.1m.

Reported operating profit from continuing operations was £7.8m (2016: loss £26.8m).

Chairman Peter Hill said: "The management team have done a tremendous job over the last year, turning the business around, returning it to profitability and with a clear strategy for growth.

"It is therefore highly regrettable that this progress has been so severely impacted by the stance taken by Apple."

Chief executive Andrew Heath added: "Last year was exceptionally challenging but operationally we delivered a strong set of results. Our restructuring programme was implemented as planned and our focus on our core IP businesses resulted in notable progress across all three of our businesses.

"We improved our financial performance across the business. We returned the business to profitability and saw good cash generation despite the outflow from the now discontinued businesses.

"However, Apple's unsubstantiated assertions and the resultant dispute have forced us to change our course, despite the clear progress we have been making.

"Initially we elected to sell the now much stronger MIPS and Ensigma businesses in order to strengthen our balance sheet and concentrate our resources on PowerVR.

"Additionally, we have received interest from a number of parties for the whole Group - reflecting the real quality and strategic value of our businesses and the associated IP. We therefore initiated a Formal Sale Process, which is on-going."

Story provided by StockMarketWire.com

Related Company: IMG

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