3rd Apr 2020 11:52
(Alliance News) - Iomart Group PLC on Friday said its operations in its most recently ended financial year were not hurt by coronavirus outbreak.
The AIM-listed cloud computing company said it expects to report another year of revenue growth, strong profitability and cash generation, in line with expectations. The company noted that it has experienced minimal impact on trading in the year to the end of March from the effects of Covid-19.
Iomart expects to report revenue of GBP112 million compared to GBP103.7 million delivered a year prior.
Adjusted earnings before interest, tax, depreciation and amortisation are seen at GBP43 million versus GBP42.2 million and adjusted pretax profit at GBP22.5 million versus GBP25.5 million a year ago.
In addition, Iomart said it is strongly cash generative, with high levels of contracted recurring revenue and low levels of debt. Net debt at year end was in line with expectations at GBP58 million.
Looking ahead, the company said its business continuity plans have been successfully implemented and remote working facilitated across its operations. Each of Iomart's datacentres remains operational to high standards of security and resilience and all customer support has been maintained.
"At this time, our priority is to see our staff and all our customers through this emergency situation as unscathed as possible," said Chief Executive Angus MacSween.
"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," added MacSween.
Iomart shares were trading 1.6% lower in London on Friday at 285.30 pence each.
By Evelina Grecenko; [email protected]
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