6th December 2016

Business on track; restructuring nears completion


Read the full statement here.

Imagination Technologies Group plc (LSE: IMG, “Imagination”, “the Group”), a leading multimedia, processor and communications technology company, today announces results for the six months ended 31 October 2016.

Highlights

  • Total partner shipments in line with expectation, with revenues from continuing operations up 6% to £64.4m (H1 FY16: £60.8m), as a consequence of the strong US dollar
    • 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
    • Peter Hill will take over as non-executive Chairman on 1 February 2017 – see separate press announcement

Andrew Heath, Chief Executive, 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 benefitted 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.”

* Adjusted EBIT is used by management to measure the performance of the business year on year by excluding non-recurring items (items which typically do not occur every year), items relating to acquisitions and investments, non-cash based share incentive charges, and amortization of intangible assets from acquisitions. The reconciliation from reported results to adjusted results is set out in note 6.

Read the full statement here.

Enquiries

Imagination Technologies Group plc
Andrew Heath, Chief Executive Officer
Guy Millward, Chief Financial Officer
Tel: 01923 260 511

Instinctif Partners
Tel: 020 7457 2020
Adrian Duffield/Kay Larsen/Chantal Woolcock

About Imagination Technologies

Imagination is a global technology leader whose products touch the lives of billions of people across the globe. The Group’s broad range of silicon IP (intellectual property) includes the key processing blocks needed to create the SoCs (Systems on Chips) that power all mobile, consumer and embedded electronics. Its unique multimedia, processor and connectivity technologies enable its customers get to market quickly with complete and highly differentiated semiconductors. Imagination’s licensees include many of the world’s leading semiconductor manufacturers, network operators and OEMs/ODMs who are creating some of the world’s most iconic products. See: www.imgtec.com.


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