Imagination may need cash injection

Imagination says it may need another cash injection from its Chinese-owned private equity owner Canyon Bridge.

‘The continuing uncertainty over Imagination’s relationship with Apple, and the level of cash receipts that will be received in the future from Apple, may result in the company requiring financial support from Canyon Bridge,’ said Imagination.

Imagination had 2018 royalty revenues of £71.5 million last year of which £45.3 million came from Apple which only uses Imagination IP in older phones which are phasing out.

Last September’s iPhones were Apple’s first phones not to use any Imagination IP.

After paying £550 million for Imagination in 2017, Canyon Bridge has advanced Imagination £35 million in funding,

Out of total revenues of £86.4 million in 2018, Imagination made a profit of £1 million.

The company employs 526 people.