Imagine Technologies Group PLC (LSE:IMG) today posted its final results for the year ended 30 April 2016.
The leading multimedia company mainly known for its chip processor contribution to the IPhone production industry has stated that it has begun “swift and decisive” action after a challenging year that has seen its biggest fall in earnings in its 30 year history.
The FTSE 350 Company reported that total revenue for the year ended April 30 had fallen 23%, declining to £120m from £156.8m. Licensing revenue from continuing operations fell to £17.1m from £37.8m as royalty revenue from continuing operations also dropped to £102.7m from £118.4m in 2015. The company reported a pre-tax loss of £63.2m down £5.7m after previous earnings of £2.2m a year earlier.
In reaction to its report, immediate early morning trading dragged shares in the company down by 7.8% falling to £1.68.13p.
Andrew Heath, Chief Executive, said:
“As previously indicated in our trading update in May, the last year has been particularly challenging for Imagination. The results reflect a combination of difficult trading conditions and a significant restructuring of the business.
“However, we have now taken the necessary action to put Imagination back onto a sound financial footing.
Slower market activity and weaker sales in one of its largest shareholders, Apple, are thought to be behind the dramatic fall in revenue and profit. Plans announced by Chief Executive Andrew Heath who was appointed five months ago said the Hertfordshire based company will aim to save £27.5m by the end of the year by planning to increase investment in PowerVR after reporting ‘significant profits’ as well as increasing investment of up to £1.5m in graphics technology firms MIPS and Ensigma.
As a result of cost-cutting schemes the tech firm announced that a total of 520 employees from its engineering activities will leave the group. So far 350 jobs have been cut since February.
05/07/2016
