REG - Iomart Group PLC - Trading Update

iomartAnnouncement

11/10/2023 07:00

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RNS Number : 7017P  Iomart Group PLC  11 October 2023

11 October 2023

iomart Group plc

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

 

Trading Update

 

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.

 

Outlook

 

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                                              Tel: 020 7597 4000
 Broker)
 Patrick Robb, Virginia Bull, Nick Prowting

 Alma                                                                                  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
(http://www.iomart.com/)

 

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