iomart: Pre-close Trading Update
iomart Group plc (AIM:IOM), the cloud computing company, is pleased to provide its pre-close trading statement for the year ending 31 March 2016 ahead of the announcement of its full year results.
Group Trading Performance
The Board is pleased to report that iomart expects to deliver another excellent set of results.
For the year to 31 March 2016, the Group expects to show adjusted EBITDA(1)of approximately £32.3 million (FY2015: £29.1 million) and adjusted(2) profit before tax of approximately £18.8 million (FY2015: £16.6 million) both in line with consensus market expectations.
Over the period, the Group has delivered solid organic growth combined with good performances from its acquired businesses, and the Board anticipates these dual drivers of growth continuing in the future.
The Hosting segment has continued to win a substantial amount of new business over the year, benefiting from the growing adoption of cloud services by organisations that need a strong partner with the necessary infrastructure, skills and experience to provide the certainty, scalability and flexibility they require. Hosting also benefitted from the full year contribution of ServerSpace which was acquired in December 2014 and SystemsUp which has contributed to the results since its acquisition in June 2015. The choices for businesses considering a move to the cloud are ever more complex and iomart’s ability to provide consultancy and services across the whole cloud spectrum, including public, private and hybrid cloud, leaves us well positioned for future growth.
Easyspace has also performed in line with expectations over the year and has benefitted from the contribution of United Communications since its acquisition in November 2015.
Notice of Results
The Group expects to report its results for the year to 31 March 2016 on Tuesday 7 June 2016.
Angus MacSween, CEO of iomart Group plc, stated:
“iomart has delivered yet another solid year of growth. The long term opportunity remains very real and iomart continues to broaden its cloud skills, experience and breadth of management to ensure it is well positioned for future growth.”
(1) adjusted EBITDA means earnings before interest, tax, depreciation, amortisation, share based payment charges, acquisition related costs and non-recurring acquisition items.
(2) adjusted profit before tax means profits before, tax, share based payment charges, amortisation of acquired intangibles, acquisition related costs, non-recurring acquisition related items, mark to market adjustments in respect of interest swap arrangements and the accelerated write off of arrangement fees on the bank borrowing facility which was repaid early in the period.