Iomart has ‘powerful building blocks’ says CEO
Cloud computing firm Iomart’s new chief executive said it has ‘powerful building blocks’ that will help it grow revenue and profit over the rest of the year.
Lucy Dimes took over as CEO and chair of the Glasgow-based company last month following the sudden departure of Reece Donovan.
In a trading update she said: “This has been a solid first half of the financial year, seeing growth in both revenue and profitability.
“Since assuming the role of CEO in the last few weeks, I have been impressed by the knowledge and skills of our team, range of service offering and diversity of our customer base. These are powerful building blocks for us to take iomart forward with confidence.”
The group anticipates revenue growth of approximately 18% for the six months to £62m (H1 FY22: £52.6m), with adjusted EBITDA up 4% to about £18.5m (H1 FY22: £17.8m).
Given the bank interest rate increases since last year, the adjusted profit before tax is expected to see a more modest increase to about £7.5m (H1 FY22: £7.4m).
These results reflect a similar business mix as outlined in the full year results to 31 March 2023, and a £6.5m approximate revenue contribution from the two latest acquisitions.
The company said its cash generation from trading continues to be strong and consistent with past performance.
Net debt increased, as expected, to approximately £49.0m at 30 September 2023 (31 March 2023: £39.8m) following the acquisition on 31 May 2023 of Extrinsica Global, the Microsoft Azure Cloud solutions provider, plus the £4m earn-out payment associated with the August 2022 Concepta Capital acquisition.
The board said it remains confident in the outlook for the long-term prospects for the group.