Dividend boost expected
Cloud demand leaves Iomart ‘well positioned for growth’
Chief executive Angus MacSween said the Glasgow-based group “is well positioned for growth”.
The company expects to report 17% revenue growth and adjusted EBITDA up from £32.3 million to £36.6m for the year to the end of March.
This is in line with market consensus expectations. It also expects a 19% increase in adjusted profit before tax to approximately £22.4m.
The group said it has delivered good growth in both revenue and profit which is expected to continue. It also expects to boost its dividend payout to shareholders.
It has continued to win a “substantial amount” of new business over the year as more firm adopt clouds services.
“The choices for businesses considering a move to the cloud are ever more complex and Iomart’s ability to provide consultancy and services across the whole cloud spectrum, including public, private and hybrid cloud, leaves us well positioned for future growth,” it said in a pre-close trading statement.
Its Easyspace business has performed in line with expectations, which has seen it return to organic revenue growth after the decline in FY2016, and has benefitted from a full year contribution of United Communications which was acquired in November 2015.
The company has decided to raise its dividend ratio from a maximum of 25% of the adjusted diluted earnings per share to 40%.
Following 18 years of service board director Sarah Haran has decided to pursue other interests and so will stand down with immediate effect.
The results for the year will be issued on Tuesday 13 June.
Mr MacSween said: “Iomart has delivered yet another year of exciting growth. The long term opportunity remains very real and iomart continues to broaden its cloud skills, experience and breadth of management to ensure it is well positioned for future growth.
“Our strong balance sheet and our increasing cashflow leaves us in good financial health. I would like to add my personal thanks to Sarah Haran who has made a significant contribution to the success of iomart for many years.”