iomart Group: Final Results
iomart (AIM:IOM), the cloud computing company, is pleased to report its consolidated final results for the year ended 31 March 2019.
- Revenue growth of 6% to £103.7m (2018: £97.8m), a milestone for the Company surpassing £100m
- Adjusted EBITDA* growth of 6% to £42.2m (2018: £39.9m)
- Adjusted profit before tax growth** of 6% to £25.5m (2018: £24.1m)
- Adjusted diluted earnings per share*** from operations increased by 4% to 18.6p (2018: 17.9p)
- Cash flow conversion from operations >90%, being £39.1m (2018: £40.8m)
- Adjusted profit before tax** margin maintained at 25% (2018: 25%)
- Proposed final dividend of 5.01p per share resulting in total dividend for year of 7.46p per share, an increase of 4% (2018: 7.18p per share), representing the 10th consecutive year of dividend growth
- Investments made to ensure long term certainty to datacentre infrastructure, including the purchase of the freehold of our Maidenhead site
- Two acquisitions completed, Bytemark and LDeX, adding new customers and complementary datacentre locations
- Refreshed sales and marketing function to support next phase of growth; early benefits started to flow through in H2 with increased new lead generation from both new and existing customers
- New Board members appointed, adding significant experience to the leadership team
- Market remains large with structural drivers, which combined with M&A strategy, supports ambition to deliver same long term pace of growth achieved over last 5 years which saw the business double in size
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 9% to £16.2m (2018: £14.9m)
- Basic earnings per share from operations increased by 3% to 11.9p (2018: 11.5p)
* Throughout these financial statements adjusted EBITDA is earnings before interest, tax, depreciation and amortisation (EBITDA) before share based payment charges, acquisition costs, (loss)/gain on the revaluation of contingent consideration and material non-recurring costs. Throughout these financial statements acquisition costs are defined as acquisition related costs and non-recurring acquisition integration costs.
** Throughout these financial statements 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, accelerated write off of arrangement fees on banking facility, (loss)/gain on revaluation of contingent consideration and material non-recurring costs.
*** Throughout these financial statements adjusted diluted 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, accelerated write off of arrangement fees on banking facility, (loss)/gain on revaluation of contingent consideration and material non-recurring costs.
Angus MacSween, CEO of iomart Group plc, stated:
“These results represent another year of strong performance by the Company, with increased revenues, profits, cash flow and dividend levels. The demand for the products and services we provide continues to grow. Over the last 12 months we have reinvigorated our sales and marketing function which delivered a strong finish to the year with March, the final month of our financial year, recording the highest month of revenue in the year. We enter the new year with confidence, underpinned by a significantly larger pipeline of prospects than this time last year.
“The journey to Cloud adoption remains a long term trend and, as a result, our market opportunity is large and widening. We continue to invest in our cloud product offering, skills and organisational platform to ensure we are positioned to capitalise on this opportunity, and the Board is confident that strong growth will continue for many years into the future.”
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