Iomart Encounters Minimal Impact On Trading From Effects Of COVID-19 Outbreak

Angus MacSween, CEO, iomart.jpg

The company says it has experienced minimal impact on trading in the year from the effects of COVID-19.

Cloud computing company iomart Group plc (AIM: IOM) provided its pre-close trading statement for the year ended 31 March 2020 ahead of the announcement of its full-year results.

The Board reported that iomart expects to deliver another year of revenue growth, strong profitability and cash generation, in line with expectations.

For the year to 31 March 2020, the company expects to report revenue of approximately £112 million (FY19: £103.7 million), adjusted EBITDA of approximately £43 million (FY19: £42.2 million) and adjusted profit before tax of approximately £22.5 million (FY19: £25.5 million). 

The organic growth rate within the cloud services division increased to 6% in the year (FY19: 2%), benefiting in particular from a strong performance by our hardware reseller team, according to the company.

“At this time, our priority is to see our staff and all our customers through this emergency situation as unscathed as possible,” said Angus MacSween, CEO of iomart Group plc.

“I am proud of how the team have responded and how well our business continuity has functioned. We remain committed to doing all we can to help each other through this.

“While we may potentially see an impact on our customer base and trading in the coming months, overall the Group benefits from high levels of recurring revenue, strong levels of cash generation, a strong balance sheet and a wide and large customer base.”

The company revealed that it is not significantly exposed to industries that are suffering the worst effects of the COVID-19 pandemic.

“The vast majority of our customers are trading or operating online and may experience an increase in demand for their products and services over the coming months,” said iomart in a statement.

“While uncertainty exists over how calendar 2020 will unfold, with some IT investment decisions likely to be delayed in the short-term, it is clear that technology and the cloud will not lose relevance and indeed the situation we are all facing perhaps reinforces the journey to the cloud.”

The company recently completed two acquisitions during the second half of the year. On 28 February 2020, iomart acquired the managed private cloud division of privately owned ServerChoice Limited, for an initial consideration of £2.1 million, with a further maximum consideration of £0.9 million.

A month later, the company completed the acquisition of Memset Limited for an initial consideration of £3.3 million, with a further maximum consideration of £0.9 million.

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