REG - Iomart Group PLC - Pre-close Trading Update

iomartAnnouncement

05/04/2022 07:00

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RNS Number : 2223H  Iomart Group PLC  05 April 2022

5 April 2022

iomart Group plc

("iomart" or the "Group" or the "Company")

 

Pre-close Trading Update

 

iomart Group plc (AIM: IOM), the cloud computing company, provides its
pre-close trading statement for the year ended 31 March 2022 ahead of the
announcement of its full year results.

 

Group trading performance

iomart is pleased to report that it expects to deliver full-year financial
results in line with market expectations.

 

For the year to 31 March 2022, the Group expects to report revenue of
approximately £103 million (FY21: £111.9 million), adjusted EBITDA((1)) of
approximately £38 million (FY21: £41.4 million) and adjusted profit before
tax((2)) of approximately £17 million (FY21: £19.6 million). The Group's
strong profit margins remain stable, with adjusted EBITDA((1)) and adjusted
profit before tax((2)) at 36.7% (FY21 37.0%) and 16.8% (FY21: 17.5%) of
revenue, respectively. The Group's cash generation continues to be strong,
with the year-end net debt expected to be approximately £43 million (31 March
2021: £54.6 million), reducing ahead of expectations. This represents a net
debt to adjusted EBITDA ratio of 1.1 times (31 March 2021: 1.3 times).

 

The Board is pleased that renewal levels have improved in the second half,
meaning that recurring revenue, which is c. 93% of full-year Group revenue,
was more stable in the second half. The inflationary pressures being
experienced across the UK business market are being monitored and addressed.

 

The Group has made good progress in the development and execution of its
growth strategy. The year has seen the launch of several new service
offerings, the creation of a strategic cyber-security partnership, and
continued investments across sales and marketing.

 

Notice of Results

The Group expects to report its results for the year to 31 March 2022 on 14
June 2022.

 

Reece Donovan, CEO of iomart Group plc, commented:

 

"I am pleased by the progress we have made during the year and reporting
financial results in line with market expectations. We have launched a number
of new solutions to the market, recently entered into an exciting alliance to
accelerate our managed cyber security offering, reshaped the commercial team
and invested in our customer service tools and resources. It is these steps,
along with the on-going execution of our strategic plan, which gives us
confidence that we will continue to be successful within the wider growing
Cloud sector."

 

 

((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
 Reece Donovan, Chief Executive Officer
 Scott Cunningham, Chief Financial Officer

 Peel Hunt LLP (Nominated Adviser and Joint Broker)                                    Tel: 020 7418 8900
 Edward Knight, Paul Gillam, James Smith

 Investec Bank PLC (Joint                                                              Tel: 020 7597 4000
 Broker)
 Patrick Robb, Virginia Bull, Sebastian Lawrence

 Alma PR                                                                               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 400-strong team can design and deploy
the right cloud solution for our customers.

 

For further information about the Group, please visit  www.iomart.com
(http://www.iomart.com/)

 

 

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