It is my pleasure to introduce our annual report, following another strong year of performance. Since our IPO in 2014 the Group has performed consistently well. During this period we have delivered a 3 year revenue CAGR of 21%, 3 year gross profit CAGR of 16% and a 3 year adjusted EBITDA¹ CAGR of 17%. During the same period we have generated more than £30m of cash from operations, converting over 100% of adjusted EBITDA¹ to cash.
During the year we have increased investment in our market-leading software and solutions offering, as well as our sales and marketing capability. We expect this investment to underpin performance in future periods. Our commitment to our channel strategy is starting to deliver returns with a growing pipeline of opportunities and new contract wins achieved during the year.
We have enhanced our position in the UK financial services sector with the completion of the Infracast acquisition in March 2017.
Our earlier acquisitions of Textlocal and Archer Digital are also performing well. Textlocal has grown strongly in the core UK business and in the Indian market, and has now been deployed into Myanmar. The gross profit from monthly recurring revenues generated by the Textlocal platform has grown by approximately 65% since it was acquired in October 2014. Archer Digital has had a good year with progress made in cross-selling of the Group’s software into the South African enterprise market.
The Board remains confident that the executive management team have the requisite skills and track record to identify, quickly evaluate and execute acquisitions as they arise.
After the completion of the Infracast acquisition, which was funded from existing cash resources, the Group’s cash position remains strong. This is thanks to another period of good cash conversion. The Board continues to review uses of cash to ensure that there is an appropriate balance between retaining flexibility for future M&A in a fragmented market, investment in the business and enhancing shareholder returns through potential on-market share buybacks and/or dividends.
In January, we were pleased to announce that two founding shareholders had exercised their right to exchange their shareholdings in IMI Mobile Private Limited for ordinary shares in the Company. To facilitate the payment of tax and other costs arising as a result of the transaction the Company acquired 30% of their shareholdings in IMI Mobile Private Limited using funds raised from a placing of 3.4m ordinary shares. In so doing we were able to welcome a number of new shareholders onto our register. Importantly, the exchange of shares has simplified our capital structure enabling greater transparency and shareholder understanding. Following this exchange, the Company has now taken steps to begin the process to effect a capital reorganisation to enable the Company to buy back shares and / or pay dividends in the future.
I would like to congratulate and thank the entire IMImobile team for another year of loyalty, hard work, dedication and success. We remain committed to executing against our strategy of creating and delivering software to clients across the globe and have the right team in place to continue winning in the competitive markets that we operate in.
We head confidently into the new financial year with a host of promising opportunities in all regions, our product and solutions offering has never been better or more relevant and we remain well positioned for future growth.
1 See note 9 for details of adjusted performance measures, adjusting items and a reconciliation of statutory results to adjusted results.