Dubai’s i-mate, the developer and supplier of Microsoft® Windows Mobile™
devices and supportive applications, announces its
intention to seek admission to trading on AIM
• Listing before the end of 2005
• Proceeds being used to finance rapid sales growth and increase R & D
• Bernard Cragg appointed non-executive chairman
Tuesday, 6 September 2005 (Dubai, UAE); i-mate™, the specialists in Microsoft Windows Mobile devices enhanced by exclusive content, services and support with global headquarters in Dubai Internet City, UAE today announces its intention to seek admission to trading on AIM (the “IPO”). It is intended that the IPO will be completed before the end of 2005. The flotation will be effected by means of a placing of new and existing ordinary shares to institutional investors in the United Kingdom and certain other jurisdictions.
The IPO will enable i-mate plc (the “Company”) to raise new capital and continue its track record of strong organic growth. The bulk of the proceeds will be used as additional working capital to support the forecast growth in the business, as well as to further drive product development. Jim Morrison, the CEO and founder, will retain the majority of his shareholding. In addition, a number of employees will receive nominal cost options reflecting their contribution to the business.
i-mate also announces that Bernard Cragg has been appointed as non-executive chairman. Bernard was Finance Director of Carlton Communications from 1987 to 2001, is chairman of Datamonitor plc and also holds a number of non-executive positions.
JPMorgan Cazenove Limited (“JPMorgan Cazenove”) is acting as sole Nominated Adviser and Broker to the Company.
In the financial year ended 31 March 2005, the i-mate group of companies (the “Group”) achieved total sales of US$136 million and profits before tax of US$14.4 million. This represents a 259 per cent. growth in revenue year on year compared to the year ended 31 March 2004.
Commenting on the proposed IPO, Jim Morrison said: "The i-mate brand is at an exciting stage of its development in a fast-growing industry. Our sales are growing rapidly and we are excited by our new range of devices using cutting edge technology, bundled with supportive content, software and services – effectively creating a complete, secure mobile solution. In the past 12 months we have opened in a number of new markets, including the UK and the US. A further range of new devices offering expanded functionality based on the latest technology will be launched very shortly.”
About i-mate
Overview of business
The Group is a developer and supplier of high-end wireless integrated Pocket PCs and Smartphones, specialising in the Microsoft® Windows Mobile™ operating system. These devices are sold under the i-mate™ brand, supported by related content and services. The Group’s devices, services and content offering are targeted at both business and individual end users.
The business was founded in 2001 by Jim Morrison. Jim, who has over 20 years experience in telecoms (principally with Cable & Wireless and BT), was a key member of the team that conceived and designed the product which became the O2 xda. The Group’s senior management are predominantly from a telecoms network operator background and worked together at BT and BT Cellnet.
The Group’s objective is to establish i-mate as the brand of choice in the rapidly expanding Microsoft® Windows Mobile™ device market.
The Group’s activities can be summarised under the following broad categories:
• the design and development of a broad range of Microsoft® Windows Mobile™ OS devices in collaboration with its manufacturing partner;
• the distribution of devices through a multi-channel network and the provision of customised solutions to meet specific corporate and network operator requirements; and
• the provision of aftermarket support and value-added services through its technical support centre and its Club i-mate website.
Key strengths and competitive advantages
The Directors believe that the Group is uniquely positioned in the industry, providing considerable value-add at all stages of the device lifecycle. The Group is involved in taking convergent voice and data devices from conception and development through manufacture and distribution to end-users, together with the provision of aftermarket support. The Group’s business model is founded on its core competencies in the following areas:
• the design and development of Microsoft® Windows Mobile™ OS devices;
• complementary software development capabilities;
• technical expertise in network operator approval processes;
• operator and corporate device customisation;
• a distribution and delivery network; and
• the provision of support to i-mate device owners.
Current trading and prospects
In the financial year ended 31 March 2005, the combined Group achieved total sales of $136 million and profits before tax of $14.4 million.
Historic performance has been built on sales in the Middle East, Australia, New Zealand, South Africa and parts of Europe. The Group is establishing new distributor partners in certain key Western European markets and the US that the Directors anticipate will accelerate sales significantly. The establishment of new distribution channels in these key markets will coincide with the launch of the next generation of i-mate devices at GITEX 2005 in late September.
The Group’s sales demonstrate significant seasonality, reflecting the importance of the holiday selling season and the release of new devices. Forward forecast orders from the Group’s distribution partners and the production orders placed with the Group’s manufacturing partner, High Tech Computer Corporation (“HTC”), support management’s anticipation of a strong sales performance during the last quarter of the current calendar year. Accordingly, the Directors have confidence in the Group’s prospects for the current financial year.
Strategy
The Group’s objective is to establish i-mate as the brand of choice in the rapidly expanding Microsoft®Windows Mobile™ device market. It intends to achieve this objective by:
• Continuing to build its presence and branded proposition in markets such as the US and certain keyparts of Western Europe beyond its established footprint in the Middle East, Australia, New Zealand, South Africa and parts of Europe;
• Developing and launching its next generation of devices to meet demand for the latest technological and design advances;
• Supplementing its device offering with complementary content and services;
• Building i-mate’s association with advanced devices operating on the Microsoft® Windows Mobile™ operating system through the development of innovative devices and the provision of aftermarket support; and
• Leveraging the Group’s close relationships, particularly with Microsoft, HTC and other key technology and content provides to maintain good visibility of the future progress of the mobile technology industry.
