11 October 2023
iomart Group plc
("iomart" or the "Group" or the "Company")
iomart Group plc (AIM:IOM), the cloud computing company, today provides a trading update for the six months ended 30 September 2023, ahead of the announcement of its half year results expected to be released in early December 2023.
Group trading performance
iomart has seen a period of continued momentum in the execution of its growth strategy. The Board anticipates reporting revenue growth of approximately 18% for the six months to £62.0m (H1 FY22: £52.6m), with adjusted EBITDA(1) up 4% at approximately £18.5m (H1 FY22: £17.8m). Given the bank interest rate increases since last year, the adjusted profit before tax(2) is expected to see a more modest increase, to approximately £7.5m (H1 FY22: £7.4m). These results reflect a similar business mix as outlined in the full year results to 31 March 2023, and a £6.5m approximate revenue contribution from the two latest acquisitions.
The Group's cash generation from trading continues to be strong and consistent with past performance. Net debt increased, as expected, to approximately £49.0m at 30 September 2023 (31 March 2023: £39.8m) following the acquisition on 31 May 2023 of Extrinsica Global Limited, the Microsoft Azure Cloud solutions provider, plus the £4.0m earn-out payment associated with the August 2022 Concepta Capital Limited acquisition.
As announced on 18 September 2023, Lucy Dimes has now assumed the role of CEO following the departure of Reece Donovan.
The positive trading performance is a reflection of the strength of the Group's cloud capabilities and business model, the breadth of its customer base and the ongoing growth of the cloud market. The recent acquisitions have enhanced the Group's routes to market and depth of skills, improving the customer proposition to ensure iomart and its customers can take full advantage of the broader hybrid cloud market opportunity. The Board remains confident in the outlook for the long-term prospects for the Group.
Lucy Dimes, CEO and Chair of iomart Group plc, commented:
"This has been a solid first half of the financial year, seeing growth in both revenue and profitability. Since assuming the role of CEO in the last few weeks, I have been impressed by the knowledge and skills of our team, range of service offering and diversity of our customer base. These are powerful building blocks for us to take iomart forward with confidence."
(1)adjusted EBITDA means earnings before interest, tax, depreciation, amortisation, share based payment charges, gains or losses on revaluation of contingent consideration, acquisition related costs and non-recurring items.
(2)adjusted profit before tax means profits before, tax, share based payment charges, amortisation of acquired intangibles, gains or losses on revaluation of contingent consideration, acquisition related costs and non-recurring items.
For further information:
iomart Group plc
Tel: 0141 931 6400
Lucy Dimes, Chief Executive Officer and Chair
Scott Cunningham, Chief Financial Officer
Investec Bank PLC (Nominated Adviser and Broker)
Tel: 020 7597 4000
Patrick Robb, Virginia Bull, Nick Prowting
Tel: 020 3405 0205
Caroline Forde, Hilary Buchanan, Joe Pederzolli
About iomart Group plc
iomart Group plc (AIM: IOM) is a cloud computing and IT managed services business providing hybrid cloud infrastructure, network connectivity, security, and digital workplace capability. Our mission is simple: to make our customers unstoppable by enabling them to connect, secure and scale anywhere, anytime. From our portfolio of data centres we own and operate across the UK to connected sites around the world, our 480-strong team can design and deploy the right cloud solution for our customers.
For further information about the Group, please visit www.iomart.com