Imagination Technologies posts biggest-ever loss as iPhone demand slows

Imagination Technologies, the Hertfordshire tech giant which makes iPhone microchips and was tipped as an Apple takeover target, has posted the biggest loss in its three-decades existence.

As iPhone demand steadied after several bumper years, and China suffered a slowdown, Imagination posted a £63.2 million pre-tax loss for the year to May.

That was worse than the City’s expectations, which were already muted after two profit warnings.

Investors hung up on Imagination, sending the shares down 8%, or 14.3p, to 169.3p.

This came despite new chief executive Andrew Heath claiming his “swift and decisive” restructuring had put the firm “back on a sound financial footing”. Heath took over from long-time boss Sir Hossein Yassaie this year after a shares slump saw the company booted out of the FTSE 250.

The stock has since risen, not least after Apple was reported to be in “advanced talks” to buy Imagination in March, but Heath admitted: “restructuring has required a number of difficult decisions.”

He is selling off parts of the business, including Imagination’s Pure digital radio brand.