Pre-close Trading Update

iomart Group plc (AIM: IOM), the cloud computing company, provides its pre-close trading statement for the year ended 31 March 2022 ahead of the announcement of its full year results.

Group trading performance

iomart is pleased to report that it expects to deliver full-year financial results in line with market expectations.

For the year to 31 March 2022, the Group expects to report revenue of approximately £103 million (FY21: £111.9 million), adjusted EBITDA(1) of approximately £38 million (FY21: £41.4 million) and adjusted profit before tax(2) of approximately £17 million (FY21: £19.6 million). The Group’s strong profit margins remain stable, with adjusted EBITDA(1) and adjusted profit before tax(2) at 36.7% (FY21 37.0%) and 16.8% (FY21: 17.5%) of revenue, respectively. The Group’s cash generation continues to be strong, with the year-end net debt expected to be approximately £43 million (31 March 2021: £54.6 million), reducing ahead of expectations. This represents a net debt to adjusted EBITDA ratio of 1.1 times (31 March 2021: 1.3 times).

The Board is pleased that renewal levels have improved in the second half, meaning that recurring revenue, which is c. 93% of full-year Group revenue, was more stable in the second half. The inflationary pressures being experienced across the UK business market are being monitored and addressed.

The Group has made good progress in the development and execution of its growth strategy. The year has seen the launch of several new service offerings, the creation of a strategic cyber-security partnership, and continued investments across sales and marketing.

Notice of Results

The Group expects to report its results for the year to 31 March 2022 on 14 June 2022.

Reece Donovan, CEO of iomart Group plc, commented:

“I am pleased by the progress we have made during the year and reporting financial results in line with market expectations. We have launched a number of new solutions to the market, recently entered into an exciting alliance to accelerate our managed cyber security offering, reshaped the commercial team and invested in our customer service tools and resources. It is these steps, along with the on-going execution of our strategic plan, which gives us confidence that we will continue to be successful within the wider growing Cloud sector.”

(1)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.

(2)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 and non-recurring items.