Announcement of intention to float on AIM

IMImobile, a London based global technology company which provides software and services to help businesses capitalise on the growth in mobile communication, today announces its intention to launch an initial public offering (“the Offer”) and seek admission of its ordinary shares to trading on AIM. The Offer will seek to raise gross proceeds of up to £30m via a placing of new ordinary shares (“the Placing”). SPARK Advisory Partners Limited is acting as Nominated Adviser, WH Ireland Limited and Whitman Howard Limited are Joint Brokers to the Company.

Key Highlights:

• IMImobile’s solutions, based on its own intellectual property, enable clients to engage and transact with their customers more efficiently through smarter mobile engagement using mobile as a channel to create new revenue streams, as a CRM and customer engagement channel and to improve business efficiency.

• Clients include a large number of mobile operators and blue-chip enterprises worldwide, typically on multi-year contracts providing a a high level of earnings visibility, with significant recurring or repeat revenues. The company services clients in over 60 countries and has 650 employees worldwide.

• Strong financial track record and profitable growth

  • For the year ended 31 March 2013, sales were £38.5m with an underlying EBITDA of £6.1m(underlying EBITDA excludes share based compensation, impairment charges, acquisition costs, disposal charges and restructuring expenses)

• Fast growing changing market driving global trends which are supporting the increased importance of mobile data networks and smart devices

  • Operators globally are forecast to spend $24 billion by 2016 on software and services to revamp and modernise their service delivery capability in order to address the enterprise cloud opportunity

  • 3G penetration in Indian and Sub-Saharan Africa expected to quadruple in the period 2013 to 2017 to over 650m subscribers.

• Highly experienced management team

  • Management team benefits from in-depth experience in technology, media, engineering and banking sectors with original founder remaining as Chairman and being joined by experienced telecom and IT senior non-executives, John Allwood and Simon Blagden.

• Geographic and market consolidation opportunities

  • Directors have significant experience in acquiring and developing companies. The Group has to date completed and integrated a number of acquisitions and the Company believes that acquisitions can be made at attractive valuations.

• Admission is expected to bring a number of benefits including raising the Group’s profile; better positioning the Group to attract, retain and recruit key staff and providing more flexibility for future growth.

• Net proceeds of the Placing will be utilised to:

  • Drive further revenue and profit growth from the core business;

  • Exploit further revenue opportunities in key verticals;

  • Maximise opportunities in selected geographic markets; and

  • Take advantages of opportunities to consolidate a fragmented market

Jay Patel, Chief Executive Officer, commented,

“We have been helping our clients take advantage of the structural trends surrounding mobile communications, social networking and cloud computing for a number of years. In that time, we have built a robust technology platform and strong client relationships. As a result, we are well placed to deliver sustained long term revenue and profit growth.

“We are excited about the benefits of being an AIM quoted company and believe that the Company’s Admission to AIM and the Placing will further support our growth ambitions.”