IMImobile delivered strong FY’20 results, with growth seen across all regions. Gross profit rose 26% y/y to £79.1m, with EBITDA +13% y/y to £21.6m. Cloud communications gross profit rose +15% y/y on an underlying basis, with Europe (+12% organic) a key driver. Post-year end, Q1 saw resilient performance in cloud communications gross profit (+30% y/y, organic: broadly flat) whilst management have noted an activity uptick from hardest hit verticals as of the end of May. We reintroduce forecasts, looking for gross profit of £103.8m by FY(Mar)’23E (+9% 3-year CAGR). EBITDA margins are forecast to expand by 230bps, driving FY’23E FCF to £15.1m (an 8% yield at current valuation). A peer-based multiple valuation approach, plotted against 3-year sales growth, values the cloud communications business alone at 375p – 470p/share.
