Trading Update

itim Group plc, a SaaS based technology company that enables store-based retailers to optimise their businesses to improve financial performance, announces an unaudited trading update for the financial year ended 31 December 2025.

Overview

• Revenues broadly flat at £17.5m* (2024: £17.9m)
• EBITDA for the year is expected to be lower at £1.7m* set against a record year (2024: £2.5m)
• Loss before tax for the year is £464k* (2024: Profit £175k), impacted by a bad debt of a retail customer going into administration in early 2026
• The Group ended the year with cash balances of £2.6m* (2023: £3.8m)
• Acceleration of geographic diversification strategy with appointment of a new Sales & Marketing Director (non-board position)
• Post period end, launch of itimAIQ, a new AI platform specifically designed for retail customers to deploy intelligent, agent-based AI solutions quickly, at scale, and at low cost

The Group has delivered a robust performance set against a challenging economic backdrop particularly in the retail sector. During this period, itim has invested significantly in its technology, diversified geographically and established a new AI product that positions the Group well for future growth.

The UK retail sector experienced a highly challenging trading environment in 2025, driven by sustained cost inflation, regulatory pressures, and weak macroeconomic growth. These factors impacted retailer investment appetite and led many market participants to prioritise cost control and cash preservation over growth initiatives. One of the Group's customers Quiz Clothing has recently entered administration which resulted in a write-off in the period however the Board is confident that this shortfall in revenue will be replaced by growth within its customer base and new prospects. As a result of these pressures facing the retail industry, the Company's results are below current market expectations. However, the Board took action in the second half of the year by reducing the cost base by over £1m*, the effects of which will be seen in 2026, which gives the Board further confidence for the year ahead.

Ali Athar, Chief Executive Officer, commented, "Based on a robust recurring revenue model, 2025 can be summarised as a year of investment, geographic diversification and product innovation. Both the Board and senior management teams have been strengthened creating immediate tangible benefits as we continue to roll out new products. The Group has responded well to the growing demand of artificial intelligence in the retail sector with the exciting launch of itimAIQ which highlights the growth intentions of the Group.

"Mindful of the ongoing challenging economic uncertainties, management believes that it has invested well this year and that 2026 represents a defining year for the execution of the Group's strategy and a potential inflection point for accelerated growth. As a result, it views the future prospects of the business with renewed confidence."

Publication of the Company's annual results are anticipated to be released in May 2026.

*unaudited