Cloud firm in good shape
Iomart eyes opportunities as market grows
Angus MacSween (pictured), chief executive of the Glasgow-based business, has hinted previously that more acquisitions could be in the pipeline.
In today’s half-year results announcement, which showed a 23% rise in adjusted pre-tax profit, he said: “Trading in the first half of the year has been very good and we remain focussed on building our recurring revenues in line with our business model.
“The M&A market continues to provide opportunities and we remain committed to continuing to complement our organic growth through further acquisitions.”
Mr MacSween said changes in the way companies handled their IT operations was playing to Iomart’s strengths.
“We are uncovering an increasing breadth of opportunities to constantly grow that recurring revenue and remain confident in our future prospects,” he said.
“There is a growing trend to manage IT in a more fragmented way. Gone are the days when large organisations or departments would outsource their entire IT departments and magically believe that things would somehow be better.
‘IT evolution now tends to be project by project, application by application, with a view to maximising value, not being locked into any one technology vendor, and being able to migrate services at will.
“This plays into the strengths we have established around agility and flexibility alongside the right expertise and infrastructure, with an ability to manage the mix of public and private cloud and hybrids of both effectively.
“This is a very long term market opportunity. We are only now starting to see back office workloads move to cloud environments and this is a trend that will continue for many years. It is, after all, only day 2 of the internet.”
FINANCIAL HIGHLIGHTS (half year to 30 September)
- Revenue growth of 16% to £42.1m (H1 2016: £36.4m)
– Cloud Services organic growth of 10% (H1 2016: 10%)
- Adjusted EBITDA growth of 13% to £17.6m (H1 2016: £15.5m)
- Adjusted profit before tax growth of 23% to £10.6m (H1 2016: £8.7m)
- Adjusted diluted earnings per share from operations increased by 19% to 8.03p (H1 2016: 6.75p)
- Cashflow from operations increased by 22% to £16.7m (H1 2016: £13.6m)
- Operating cash conversion rate increased to 95% of adjusted EBITDA (H1 2016: 88%)OPERATIONAL HIGHLIGHTS
- Ongoing investment in all forms of cloud skills
- Continuing to develop relationships with major Public Cloud suppliers leading to growth in Public CloudStatutory Equivalents
- 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 26% to £7.1m (H1 2016: £5.7m)
- Basic earnings per share from operations increased by 19% to 5.43p (H1 2016: 4.57p)