Iomart shares up 11% on trading statement

Iomart CEO Reece Donovan

Shares of Glasgow-based cloud computing firm Iomart Group rose about 11% on Tuesday after it published its pre-close trading statement for the year ended March 31, 2022, ahead of its full year results.

“Iomart is pleased to report that it expects to deliver full-year financial results in line with market expectations,” said the company.

For the year to 31 March 2022, the group expects to report revenue of approximately £103 million (FY21: £111.9 million), adjusted EBITDA of approximately £38 million (FY21: £41.4 million) and adjusted profit before tax of approximately £17 million (FY21: £19.6 million).

“The group’s strong profit margins remain stable, with adjusted EBITDA and adjusted profit before tax 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.”

Iomart CEO Reece Donovan said: “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.”

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.