Iomart Group PLC Pre-close Trading Update (5753U)
01 April 2019 - 5:00PM
UK Regulatory
TIDMIOM
RNS Number : 5753U
Iomart Group PLC
01 April 2019
1st April 2019
iomart Group plc
("iomart" or the "Group" or the "Company")
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 2019 ahead of the announcement of its full year results.
Group Trading Performance
The Board is pleased to report that iomart expects to deliver
another year of revenue growth with consistent, strong
profitability and cash generation.
For the year to 31 March 2019, the Group expects to report
revenue growing to approximately GBP104 million (FY2018: GBP97.7
million), adjusted EBITDA(1) of approximately GBP42.2 million
(FY2018: GBP39.8 million) and adjusted(2) profit before tax of
approximately GBP25.3 million (FY2018: GBP24.0 million).
Over the last 12 months we have reinvigorated our sales and
marketing function to ensure we are best placed to capture the full
market opportunity. The early benefits of this effort started to
flow through in the second half of the financial year with an
increase in new lead generation from both new and existing
customers. This has delivered a strong finish to the year with a
significantly larger pipeline of prospects than this time last year
and we enter the new financial year with confidence.
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 in the future.
Investments in the second half
On 20 December 2018, we completed the acquisition of LDeX Group
Limited ("LDeX") for an initial consideration of GBP7.5 million,
with a further maximum contingent consideration of GBP3.5 million.
LDeX provides datacentre and connectivity services in the UK from
central London and Manchester locations. As well as bringing a new
and diverse customer base to iomart, the two locations are
complementary to our existing infrastructure.
In December 2018, we purchased the freehold of our Maidenhead
site for GBP5.4 million. This investment, along with the extension
of our London lease earlier in the year, and the LDeX acquisition,
brings long term certainty to our datacentre infrastructure.
Notice of Results
The Group expects to report its results for the year to 31 March
2019 on Tuesday 11 June 2019.
Angus MacSween, CEO of iomart Group plc, stated:
"iomart has delivered yet another year of growth with strong
profitability and cash flow underpinned by our recurring revenue
business model, diverse customer base and attractive market
position.
"The Group's large and building sales pipeline, combined with
high levels of visibility and a significant market opportunity,
leaves the Board very confident in the outlook for the new
financial year, as well as the long term prospects for the Group.
"
(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, non-recurring items, mark to market adjustments in
respect of interest swap arrangements and interest charges on
contingent consideration.
For further information:
iomart Group plc Tel: 0141 931 6400
Angus MacSween, Chief Executive
Scott Cunningham, Chief Financial Officer
Peel Hunt LLP (Nominated Adviser and Broker) Tel: 020 7418 8900
Edward Knight
Peter Stewart
Nick Prowting
Alma PR Tel: 020 3405 0212
Caroline Forde
Hilary Buchanan
Helena Bogle
About iomart Group plc
For over 20 years iomart Group plc (AIM: IOM) has been helping
growing organisations to maximise the flexibility, cost
effectiveness and scalability of the cloud. From data centres we
own and operate in the U.K., and from connected facilities across
the globe, we deliver 24/7 storage and protection for data across
the most complex of cloud and legacy infrastructures. Our team of
over 400 dedicated staff work with our customers at the strategy
stage through to delivery and ongoing management, to implement the
secure cloud solutions that deliver to their business
requirements.
For further information about the Group, please visit
www.iomart.com
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END
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