| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 76.45 | 74 |
| Intrinsic value (DCF) | 23.33 | -47 |
| Graham-Dodd Method | 0.28 | -99 |
| Graham Formula | 0.12 | -100 |
Itim Group Plc is a UK-based software company specializing in retail technology solutions. Founded in 1993 and headquartered in London, Itim provides a suite of retail software solutions, including multi-channel sales & service, enterprise order management, price & stock optimization, and supplier management. The company also offers data exchange services and consultancy, catering primarily to retailers in the UK, Europe, and internationally. Operating in the competitive Software - Application sector, Itim focuses on helping retailers optimize operations and enhance customer experiences through technology. Despite its niche focus, the company faces challenges in scaling against larger competitors. With a market cap of approximately £15.2 million, Itim remains a small-cap player in the retail software space, targeting mid-sized retailers seeking specialized solutions.
Itim Group Plc presents a high-risk, speculative investment opportunity. The company operates in a competitive retail software market, where it struggles with profitability, reporting a net loss of £892,000 in FY 2023. While its revenue of £16.1 million suggests moderate demand for its solutions, negative EPS (-£0.0286) and minimal operating cash flow (£527,000) raise concerns about sustainability. The lack of dividends and reliance on a niche market further limit appeal. However, its low beta (0.763) indicates lower volatility relative to the market, which may attract risk-averse investors. Investors should weigh its specialized retail software expertise against its financial struggles and competitive pressures.
Itim Group Plc competes in the retail software market, where it differentiates itself through specialized solutions for mid-sized retailers. Its competitive advantage lies in its deep domain expertise in retail operations, particularly in multi-channel sales and inventory optimization. However, the company lacks the scale and financial resources of larger competitors, limiting its ability to invest in R&D and global expansion. Itim’s focus on the UK and European markets provides regional strength but exposes it to local economic fluctuations. The company’s negative net income and constrained cash flow further hinder its ability to compete aggressively. While its software offerings are well-regarded in niche segments, Itim struggles to differentiate against cloud-based SaaS competitors that offer more scalable and modern solutions. Its long-standing client relationships provide some stability, but growth prospects remain uncertain without significant investment or strategic partnerships.