Iomart ups dividend; revenue resilient at £112m

Iomart CEO Reece Donovan

Glasgow-based cloud data centre operator Iomart Group plc said on Tuesday its revenue proved resilient through the Covid-19 pandemic as it came in at £111.9 million for the year ended March 31, 2021, slipping just 0.6% from £112.6 million.

However, profit before tax fell 25.75% to £12.5 million.

Iomart said it will target “selective acquisitions” to complement organic growth.

On dividends, Iomart said: “During the year we paid an interim dividend of 2.60p per share which was paid to shareholders in January 2021.

“In addition, after updating our dividend policy, the board is now proposing to pay a final dividend of 4.50p per share.

“With this final dividend payment, the total for the year will be 7.10p representing a 9% increase on the prior year.

“We believe this is appropriate given our funding position, robust business model, the low level of indebtedness within the group and the fact we have not utilised any of the government furlough schemes.”

Iomart CEO Reece Donovan said: “The year covered by this report coincided almost to the day with the onset of the pandemic in the UK.

“We can look back with pride on what has been achieved during this unprecedented time for all of our employees and wider stakeholders.

“Our focus during the year was on the protection of our people and the business and our team responded with commitment, resilience, and dedication.

“I would like to take this opportunity once again to thank them for their efforts and support.

“We have now begun a new chapter for iomart, and I am proud to be at the helm of this great team.

“We have identified a significant market opportunity, growing our propositions in hybrid cloud, security, the digital workplace and connectivity, supporting our customers as they adapt to new ways of working now and in the future.

“We have proven the robustness of our business, underpinned by high levels of recurring revenues, breadth of customer base and strong cash generation.

“This is now enhanced with a clear strategic vision and roadmap to re-position the group for growth, both organically and through selective acquisitions, and the board is increasingly confident in the positive outlook for the long-term prospects for the group.”