itim Group - shares surge by 30%+ after retail software specialist swings back into the black in H1
Shares in SaaS based technology company itim Group (AIM:ITIM) have risen to the top of the daily leaderboard after posting a return to profitability for the six months ended 30th June 2026.
The business
Founded in 1993 by current CEO Ali Athar, itim was initially formed as a consulting business, helping retailers to improve their operations. From 1999 it began to expand into proprietary software solutions, and by 2004 itim was focused exclusively on digital technology. The company has grown both organically and through a series of acquisitions of small, legacy retail software systems and applications which it has redeveloped to create a fully integrated platform.
The group’s core platform, Itim-UNIFY, has matured into a highly differentiated, customer-centric, omni-channel retail platform designed for modern retailing. It enables clients to: reduce IT complexity and operating costs; improve head office productivity and reduce administrative overheads; drive sales growth through enhanced customer engagement; and significantly improve overall profitability.
Recently, the firm has launched itimAIQ, a new AI platform specifically designed for retailers. At the centre of this is a platform built specifically to manage the information retailers’ AI systems rely on, allowing clients to harness the power of LLMs without exposing sensitive customer or transactional data.
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Half year figures show growth and a return to profit
At the top line, itim posted group revenues of £8.6 million for the six months to 30th June 2026, up from £8 million in H1 last year. Importantly for a software business, booked recurring revenues were up from £6.6 million to £7.4 million, representing 86% of group revenue, up from 83% in H1 2025. Annual recurring revenues are now £13.6 million, up from £13.3 million 12 months earlier but down from £14.2 million at the last year end in December.
The performance was delivered amongst a challenging retail sector, subdued economic growth and a large customer falling into administration. However, this was partially offset by a new client win, with the business also being supported by its existing customer base as retailers remain cautious on new investment. The South American operations were said to have delivered a much stronger performance, reflecting the benefits of continued geographic diversification.
To profits, and adjusted EBITDA for the period was £1.3 million against just £0.4 million in H1 2025 and £1.7 million for the whole of 2025. That means at the EBITDA level itim has already achieved around three-quarters of last year’s total profits at the halfway stage. Pre-tax profits were £0.2 million against last year’s H1 loss of £0.7 million.
Cash flow also notably increased in the period, with net cash flow from operating activities of £2.1 million against a £0.9 million outflow in H1 2025. That performance was mainly driven by the increased profits and a £0.81 million reduction in receivables. The improved cash flow helped net cash to rise to £3.1 million at the period end, up from £1.8 million 12 months earlier and up from £2.6 million at the end of December. This was despite itim paying back a £0.5 million loan facility in full during the period.
itim Group share price chart since IPO
CEO optimistic about the outlook
CEO, Ali Athar, along with his family, are the largest combined shareholders in itim Group, with a 38.2% total stake. Athar seemed happy with the H1 performance, commenting: "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."
Itim added that its 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.
Investors also seem happy with the performance. As we write, shares in itim Group have gained 31.7% in early trading, up 6.5p at 27p. That capitalises the company at £8.48 million, with net cash representing 37% of that. It’s also worth pointing out that despite the price rise, itim continues to trade at a discount to net assets. Net assets were £11.8 million as at 30th June 2026, putting the shares on a 28% discount. However, intangibles are the largest value item on the balance sheet, standing at £11.3 million.
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Disclosures
itim Group is not a corporate client of Optimo Research Ltd.
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