iomart Group: Final Results

12th June 2018 | iomart Group plc

iomart (AIM:IOM), the cloud computing company, is pleased to report its consolidated final results for the year ended 31 March 2018.

FINANCIAL HIGHLIGHTS

  • Revenue growth of 9% to £97.7m (2017: £89.6m)
  • Adjusted EBITDA* growth of 9% to £39.8m (2017: £36.6m)
  • Adjusted profit before tax growth** of 7% to £24.0m (2017: £22.4m)
  • Adjusted diluted earnings per share*** from operations increased by 6% to 17.96p (2017: 16.99p)
  • Cashflow from operations increased by 8% to £40.8m (2017: £37.8m)
  • Adjusted profit before tax** margin maintained at 25% (2017: 25%)
  • Proposed final dividend of 4.93p per share resulting in total dividend for year of 7.18p per share, an increase of 20% (2017: 6.00p per share)

OPERATIONAL HIGHLIGHTS

  • 3 successful acquisitions completed during the year:
    • Dediserve for €7.9m
    • Simple Servers for £4.9m
    • Sonassi for £11.8m
  • Creation of software defined fibre network
  • Post year-end extension on London datacentre lease until 2030

Statutory Equivalents

The above highlights are based on adjusted results. A full reconciliation between adjusted and statutory results is contained within this statement. The statutory equivalents of the above results are as follows:

  • Profit before tax growth of 1% to £14.8m (2017: £14.7m)
  • Basic earnings per share from operations increased by 1% to 11.41p (2017: 11.27p)

* Throughout this statement adjusted EBITDA is earnings before interest, tax, depreciation and amortisation (EBITDA) before share based payment charges, acquisition costs, gain on revaluation of contingent consideration and non-recurring costs. Throughout this statement acquisition costs are defined as acquisition related costs and non-recurring acquisition integration costs.

** Throughout this statement adjusted profit before tax is profit before tax, amortisation charges on acquired intangible assets, share based payment charges, mark to mark adjustments in respect of interest rate swaps, acquisition costs, interest on contingent consideration due, gain on revaluation of contingent consideration and non-recurring costs.

*** Throughout this statement adjusted earnings per share is earnings per share before amortisation charges on acquired intangible assets, share based payment charges, mark to mark adjustments in respect of interest rate swaps, acquisition costs, interest on contingent consideration due, gain on revaluation of contingent consideration and non-recurring costs and the taxation effect of these.

Angus MacSween, CEO commented,

“We are delighted to report another year of excellent results, with increased revenues and profits and the completion of a number of acquisitions, augmenting the Group’s customer base and skill set. Trading in the new year has continued in a similarly positive vein.

Since we embarked on our current strategy in 2007, we have successfully executed on our growth strategy, growing revenues from £8m to nearly £100m. We strongly believe that the market for cloud computing solutions we identified at the time presents us with as much opportunity now as it did then and that, together with additional acquisitions, will allow us to continue to execute successfully on the strategy we put in place at that time.

There is still a long runway of opportunity as the “IT as a service” philosophy and delivery unfolds, providing us with considerable scope for long-term, sustained growth. We therefore look to the coming year and beyond with confidence”.

Results in full

IOMART VIDEO OVERVIEW FOR INVESTORS

We filmed the video below with iomart Group’s Financial Director Richard Logan. It provides a quick overview of the Company’s operations and growth strategy.

IOMART INVESTOR MEETINGS

We are organising investor meetings with management in London (18th June) and Edinburgh (21st June). These are for professional investors only. If you would like attend please contact us.