iomart: Pre-close Trading Statement
iomart Group plc (AIM:IOM), the cloud computing company, is pleased to provide its pre-close trading statement for the year ending 31 March 2018 ahead of the announcement of its full year results.
Group Trading Performance
The Board is pleased to report that iomart expects to deliver another strong set of results delivering good growth in both revenue and profit.
For the year to 31 March 2018, the Group expects to show revenue growth of approximately 9%, adjusted EBITDA*of approximately £39.8 million (FY2017: £36.6 million) and adjusted** profit before tax of approximately £23.9 million (FY2017: £22.4 million) all in line with market consensus expectations.
Given the sustainable nature of the market opportunity, a broadening product offering and a growing reputation within the cloud industry, the Board anticipates that growth will continue in the future.
The Cloud Services 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.
Cloud Services also benefitted from the full year contribution of Cristie Data which was acquired in August 2016 and from the contribution of Dediserve, Simple Servers and Sonassi since their acquisition in May 2017, July 2017 and November 2017 respectively. These acquisitions not only bring additional long-term customers into the Group but also have expanded our geographical reach and increased our expertise within high growth areas of the market, such as ecommerce retailing.
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, the segment that provides a range of services to small and micro businesses, has performed well, in line with expectations, having continued the organic revenue growth re-established in the prior year.
Notice of Results
The Group expects to report its results for the year to 31 March 2018 on Tuesday 12 June 2018.
Angus MacSween, CEO of iomart Group plc, stated:
“iomart has delivered yet another year of consistent growth. With a significant and sustainable market opportunity ahead of us, we continue to invest in our business and people to ensure we are well positioned for future growth. We continue to see strong demand for our services and remain confident in our prospects. Our healthy balance sheet, high levels of revenue visibility and our strong and increasing cash conversion leaves us in good financial health.”
*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.
**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, non-recurring items, mark to market adjustments in respect of interest swap arrangements and interest charges on contingent consideration.