Iomart Group PLC Pre-close Trading Update (6936A)
01 October 2020 - 4:00PM
UK Regulatory
TIDMIOM
RNS Number : 6936A
Iomart Group PLC
01 October 2020
1 October 2020
iomart Group plc
("iomart" or the "Group" or the "Company")
Pre-close Trading Update
iomart Group plc (AIM:IOM), the cloud computing company, is
pleased to provide its pre-close trading update for the six months
ended 30 September 2020, ahead of the announcement of its half
yearly results.
Group trading performance
iomart's business model has stood it in good stead over an
unprecedented six-month period in which our staff, customers and
operations have had to adjust to the impact of Covid-19. Despite
the global slowdown in corporate activity our business has
performed well, with growth from existing customers in line with
our expectations for the period. The Board anticipates reporting
revenue growth of approximately 2% for the six months, to over
GBP56m (H1 FY20: GBP55.1m) and steady levels of adjusted EBITDA, at
approximately GBP21m (H1 FY20: GBP21.8m). These results reflect
greater uptake of our managed private cloud solutions which, while
at slightly lower margins compared to our legacy self-managed
infrastructure, remain sector leading; the timing of billing for
certain orders; and only a partial benefit from efficiency
adjustments to our cost base made in the period.
The Group's cash generation has been strong and ahead of the
Board's expectations, with the period end cash position increasing
to approximately GBP19m at 30 September 2020 (31 March 2020:
GBP15.5m).
As announced on 9 September 2020, Reece Donovan has now assumed
the role of CEO following the retirement of Angus MacSween, who
remains on the Board as Non-Executive Director.
Outlook
We believe the diversity and limited concentration of our
customer base, along with the critical web centric services we
provide, will continue to shelter us from the worst of the expected
economic pressures over the coming period. Our recently
strengthened sales &marketing operations gives us a stronger
foundation to accelerate growth once companies regain the economic
confidence to make infrastructure transformation decisions. The
Board remains confident in the outlook for the long-term prospects
for the Group.
Reece Donovan, CEO of iomart Group plc, commented:
"iomart has performed extremely well during these difficult
times, proving the strength of our recurring revenue model, the
value that our customers place on the services we deliver, and the
commitment of our teams. The integrations of Memset and
ServerChoice, which were acquired towards the end of the last
financial year, have progressed well and we remain alert to the
opportunity to integrate further cloud businesses, customer bases
and capabilities into the iomart Group. With high levels of cash on
our balance sheet, a compelling offering, and strong ongoing
customer relationships, we are confident in the ongoing health of
the business."
For further information:
iomart Group plc Tel: 0141 931 6400
Reece Donovan, Chief Executive Officer
Scott Cunningham, Chief Financial Officer
Peel Hunt LLP (Nominated Adviser and Joint Tel: 020 7418 8900
Broker)
Edward Knight, Edward Allsopp, Nick Prowting
Investec Bank PLC (Joint Broker) Tel: 020 7597 4000
Patrick Robb, Virginia Bull, Sebastian Lawrence
Alma PR Tel: 020 3405 0212
Caroline Forde, 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 can provide multiple secure infrastructure solutions
from branch office backups, to hyper cloud migrations, and
everything in between, delivered typically with a 24/7 managed
service. 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 Grou p, please visit www.iomart.com
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