iomart Group: Half Year Results
iomart Group Plc (AIM:IOM), the cloud computing company, is pleased to report its consolidated half yearly results for the period ended 30 September 2018.
- Revenue growth of 8% to £50.9m (H1 2018: £47.0m)
- Adjusted EBITDA(i) growth of 10% to £21.1m (H1 2018: £19.2m)
- Adjusted profit before tax(ii) growth of 7% to £12.4m (H1 2018: £11.6m)
- Adjusted diluted earnings per share(iii) increased by 6% to 9.23p (H1 2018: 8.71p)
- Period end net debt of £33.6m, less than one times annualised EBITDA
- Interim dividend of 2.45p per share (H1 2018: £2.25p)
- Substantial growth in sales pipeline due to re-structuring of our sales and marketing activities
- Continued investment in cloud hosting products and services to allow us to deliver all elements of a hybrid environment
- Strong focus on efficiency and customer service which ensures market leading profitability
- Further expansion of our UK datacentre resources and points of presence across the globe
- Acquisition of Bytemark, a managed hosting business in York, for total consideration of £4.9m
The above highlights are based on adjusted results. A full reconciliation between adjusted and statutory results is contained within this statement. The largest variance within the adjustments relates to a net increase in the contingent consideration on 2017 acquisitions, as performance was ahead of expectations within a range of earnings which had a high multiple factor under a ratchet mechanism. Accounting standards require the £1.4m additional consideration to be recorded as a loss within the profit before tax, with no such sum in the prior period comparative. The statutory equivalents of the above results are as follows:
- Profit before tax of £7.3m (H1 2018: £7.8m)
- Basic earnings per share of 5.48p (H1 2018: 5.85p)
Angus MacSween, CEO commented,
“iomart’s continued strong trading performance is a reflection of the strength of our cloud capabilities and business model, the breadth of our customer base and the ongoing growth of the cloud market. We help companies at all stages of their journey, with a wide portfolio of managed cloud services, which makes us confident about the significant and sustainable market opportunity ahead.
“The high levels of visibility within our recurring revenue business model and strong cost control provides stability to our trading performance for the second half of the year, ensuring the full year should deliver a similar overall year on year progression as we have reported in the first half. We remain very confident in the Group’s long term prospects.”
(i) Throughout this statement adjusted EBITDA is earnings before interest, tax, depreciation and amortisation (EBITDA) before share based payment charges, acquisition costs, and non-recurring costs. Throughout this statement acquisition costs are defined as acquisition related costs and non-recurring acquisition integration costs.
(ii) Throughout this statement adjusted profit before tax is profit before tax, amortisation charges on acquired intangible assets, share based payment charges, mark to market adjustments in respect of interest rate swaps, acquisition costs, interest on contingent consideration due, (loss)/gain on revaluation of contingent consideration and non-recurring costs.
(iii) Throughout this statement adjusted earnings per share is earnings per share before amortisation charges on acquired intangible assets, share based payment charges, mark to market adjustments in respect of interest rate swaps, acquisition costs, interest on contingent consideration due, (loss)/gain on revaluation of contingent consideration, accelerated write-off of arrangement fees on restructuring of banking facility, and non-recurring costs and the taxation effect of these.
This interim announcement contains forward-looking statements, which have been made by the directors in good faith based on the information available to them up to the time of the approval of this report and such information should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward-looking information.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (“MAR”). Upon the publication of this announcement, this inside information is now considered to be in the public domain.
For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of iomart by Scott Cunningham, Chief Financial Officer.
IOMART INVESTOR MEETINGS
We are holding investor meetings with management in London (10th December) and Edinburgh (13th December). These are for professional investors only. If you would like attend please contact us.