Iomart Group PLC Pre-close Trading Update and Notice of Results (8919V)
April 12 2023 - 2:00AM
UK Regulatory
TIDMIOM
RNS Number : 8919V
Iomart Group PLC
12 April 2023
12 April 2023
iomart Group plc
("iomart" or the "Group" or the "Company")
Pre-close Trading Update and Notice of Results
Positive close to the year provides solid basis for FY24
iomart Group plc (AIM: IOM), the cloud computing company,
provides its pre-close trading statement for the year ended 31
March 2023 ahead of the announcement of its full year results in
June.
Group trading performance
iomart is pleased to report that it expects to deliver full-year
financial results in line with market expectations*. The Group has
seen stability of customer renewal rates across all areas of the
business, providing a solid base of recurring revenues. Meanwhile
the sales pipeline improvement noted in H1 converted into stronger
order booking levels in H2, providing positive momentum as the
Group enters the new financial year.
For the year ended 31 March 2023, the Group expects to report
revenue of approximately GBP115 million (FY22: GBP103.0 million),
adjusted EBITDA(1) of approximately GBP36.2 million (FY22: GBP38.0
million) and adjusted profit before tax(2) of approximately GBP14.6
million (FY22: GBP17.1 million).
The revenue of GBP115 million is a record level for the Group
and is a combination of a return to long-term historic customer
renewal levels, inflationary pricing adjustments, primarily for
datacentre energy usage, plus the successful completion of the
acquisition of Concepta Capital Limited in August 2022.
Non-recurring revenue is expected to be approximately GBP9.2
million (FY22: GBP7.1 million) meaning recurring revenue remains
high at 92% of total revenue (FY22: 93%).
The datacentre sector as a whole has had to navigate the
significant challenges in the energy markets and during the year
the Group's electricity costs increased by approximately GBP7
million. iomart's robust business model and customer arrangements
have ensured this additional energy cost has been appropriately
passed through to the customer base. The Group's adjusted EBITDA
reflects both the revenue mix in the year together with investment
in upskilling our employees' capabilities, alongside appropriate
wage increases and cost of living support. EBITDA margin in the
year was heavily impacted by the pass through of energy costs and
to a lesser extent lower margin within the Concepta acquisition,
primarily from their reselling activities. The increase in the UK
interest rates has pushed the Group's interest expense up by
approximately GBP0.9m year on year.
The Group's cash generation continued to be strong, with the
year-end net debt expected to be approximately GBP41 million (31
March 2022: GBP41.3 million). This represents a net debt to
adjusted EBITDA ratio of 1.1 times (31 March 2022: 1.1 times).
Notice of Results
The Group expects to announce its results for the year ended 31
March 2023 on 13 June 2023.
Reece Donovan, CEO of iomart Group plc, commented:
"I am pleased with the progress achieved this year in our
transition to a secure hybrid cloud offering. We saw our pipeline
improve in the first half and this converted to stronger order
booking levels as we completed the year. The team has worked hard
to ensure momentum in the execution of our strategic plan and
continuous improvement within the business. This gives us
confidence that we will continue to be successful within the wider
growing cloud sector."
*Note: Company compiled range is based on known sell-side
analyst estimates. The latest known sell-side analyst estimates for
the full year ended 31 March 2023 are:
-- Revenue in the range of GBP105m to GBP116m;
-- Adjusted EBITDA (1) in the range of GBP34.6m to GBP37.6m; and
-- Adjusted PBT (2) in the range of GBP13.5m to GBP15.9m
(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
Investec Bank PLC (Nominated Adviser and Broker) Tel: 020 7597
4000
Patrick Robb, Virginia Bull, Nick Prowting
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
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