Iomart Share Discussion Threads

[grabster] 03/1/2025 09:43

iomart Group plc (LON:IOM) is reducing its dividend from last year's comparable payment to £0.013 on the 31st of January.

Iomart Group's Projections Indicate Future Payments May Be Unsustainable

Over the past five years, it looks as though iomart Group's EPS has declined at around 25% a year. Dividend payments are likely to come under some pressure unless EPS can pull out of the nosedive it is in.

(Yahoo Finance, 2 January 2025)

[grabster] 19/12/2024 14:10

7 weeks on from that profit warning, still tumbling. Another substantial fall today.
Fallen more than 60% since the highs of last year, and way down from earlier highs, to a new all-time low.

[grabster] 17/12/2024 16:16

A 6.1% fall today.

[grabster] 17/12/2024 14:03

Down another 4.8% by midday. Share price has halved in a year.

Anything less than 84.5p brings its market cap below the psychologically significant £100m

[grabster] 16/12/2024 08:03

That's a strong exit message!
It will likely influence other holders.

[simon gordon] 16/12/2024 07:00

Citywire - 16/12/24:

Liontrust exits Iomart

Liontrust managers Anthony Cross and Julian Fosh have sold their position in Iomart (IOM) over concerns about its competitive advantage.

The duo exited the IT managed services provider held in their Liontrust UK Smaller Companies fund as they had become ‘increasingly concerned over the strength of the company’s competitive advantage, as the dominance of hyperscale cloud providers has grown and businesses have increasingly turned to public cloud solutions.’

Iomart, which owns data centres and specialises in cloud services, it has seen organic growth and operating profit markets trend downwards, which has ‘put significant pressure on cashflow returns on capital’.

‘Although the company has committed to reshaping its offering, hoping to grow higher margin, faster growing areas of managed service provision such as data and cyber security, we believe the risk of effecting such a transition in the glare of the public markets outweighs the potential reward and have taken the decision to exit the position,’ said the managers.

The shares fell 1.7% to 80.7p on Friday, extending losses to 49% over the last 12 months.

[grabster] 04/12/2024 14:50

Combination of director purchase and broker upgrade has managed to produce a 4% fall today!

[grabster] 29/11/2024 16:37

Without the prior acquisition announcement the reaction to Wednesday's figures would surely have been far less kind, even if results were in line with Oct 1 t/u and notwithstanding the hit it already took back then.

H1 2025
H1 2024
Change

Revenue
£62.0m
£62.0m
-

% of recurring revenue1
91%
94%
-3%

Adjusted EBITDA2
£17.0m
£18.6m
-9%

Adjusted EBIT3
£6.6m
£9.6m
-32%

Adjusted profit before tax4
£4.3m
£7.6m
-44%

Adjusted diluted EPS5
2.6p
5.2p
-50%

Profit before tax
£1.0m
£4.4m
-77%

Basic EPS
0.3p
3.1p
-90%

Cash generation from operations
£11.1m
£16.8m
-34%

Interim dividend per share
1.3p
1.94p
-33%

Net debt9
£48.1m
£48.0m
-

[simon gordon] 16/10/2024 19:27

Post by Target Price on the LSE - 1/10/24

Have followed this company for a while and was contemplating having a nibble, but don't like this deal.

Before the deal (and trading update / downgrades) at 112p they were trading at roughly 7.5x EV/EVIT (£125m mcap, £20m debt, £19m EBIT for FY25). Arguably decent valuation to get in at given the quality of the company. After the deal and downgrades, at 106p, they are at 12x EV/EBIT for FY25 and 9.5x for FY26. Not sure the business justifies that valuation until they demonstrate growth. And they are v geared now. £80m bank debt and a £7.5m pa interest bill. Vs EBITDA it might look OK, but bear in mind that a) EBITDA is flattered by lease accounting, and b) they spend a lot on capex. Hence why adj EBIT is about £20m lower than adj EBITDA (for FY26 £40m vs £20m).

It looks like they're buying growth tbh, which is a bit damning re the existing business not being able to grow; and also damning that despite trying for some time they cant / haven't been able to attract the talent to organically build the cloud based competencies that Atech provides. And they're paying a high price - 17x EBITDA for a business that whilst growing only delivers EBITDA margins of 10%.

If I was clutching at straws it would be re synergies and cost they can take out. But the risk with this is it impacts growth and existing customer retention, and is expensive to do in terms of cash.

Will continue to watch it. Maybe if the shares really struggle from here the valuation will be attractive enough given the balance sheet and integration risk...

[simon gordon] 16/10/2024 18:18

That's some serious volume today!!

[simon gordon] 15/10/2024 14:37

Debt, £79.2m, getting close to market cap, £98m.

Continues to pay a dividend, probably due to fund manager pressure. Will have paid out £17m in past three years to March 25.

[abrahamtoast] 04/10/2024 13:15

Looking for an up to date viewpoint, as the share price craters yet again, now comfortably below 100p.

What on earth is going on? I though Ms Dimes was meant to steady the ship and move the company back towards organic growth. All we've seen so far is more acquisitions. There will come a time when the banks will need to say no. The company can't keep borrowing to maintain its meagre profits.

Where will this share be in a month?

[varies] 01/10/2024 10:11

Will IOM need to raise more cash soon ?

[c3479z] 01/10/2024 09:38

guess they're up against enormous American competition in the shape of AMZN, MSFT, Google in cloud computing provision?

[simon gordon] 01/10/2024 06:40

Atech looks like a Hail Mary.

[simon gordon] 30/8/2024 13:23

Michael Dell post on LinkedIn - 28/8/24:

83% of enterprises plan to move workloads back to private cloud from public cloud.

Source: Barclays CIO Survey 2024

[dogwalker] 21/2/2024 15:05

Where have today's legs come from I wonder.

[morkandmindy] 02/11/2023 14:25

Big volume today!

[gopher] 18/9/2023 09:26

Hmm.. CEO goes now with results at end of week. What could possibly go wrong?

[2lb] 18/9/2023 06:34

Ineffective CEO booted , no surprise there..

[bunlop] 20/8/2023 15:29

Chart looking very strong compared to a lot of AIM stocks. Just gone XD as well. Good chance of hitting 200p soon but will it be able to break that level this time around?.

[2lb] 13/6/2023 10:42

Underwhelming results

[value viper] 11/5/2023 10:46

Been big rally here - hhmm

[abrahamtoast] 18/4/2023 18:23

First time on the boards for some time. I still hold some of these, although I'm no longer in touch with anyone who works there, having known several over the last 10-15 years. I'd be grateful if someone could post a brief summation of their opinion on what's gone wrong here. How much of it is down to the new CEO? He certainly seems to have made a number of pretty basic mistakes, since taking over from Angus McSween. From the outside, it looks like the culture is getting mired down with out-dated jargon and ridiculous job-titles straight from the 1990s. The company seems to be doing nothing more than treading water. Please, someone tell me there's more to it than this.

[kalai1] 12/4/2023 13:02

iomart Group plc issued a pre-close trading statement for the year ended 31 March 2023 this morning. The Group expects to deliver FY performance in line with market expectations. For the year ended 31 March 2023, the Group expects to report revenue of approximately £115 million (FY22: £103.0 million), adjusted EBITDA of approximately £36.2 million (FY22: £38.0 million) and adjusted profit before tax of approximately £14.6 million (FY22: £17.1 million). So a return to topline expansion with some pressure on margins, but still generally profitable for the sector. Net debt was roughly steady and comfortable at around £41m. Valuation is also relatively attractive with forward PE ratio at 10.8x top quartile for the Software & IT Services sector. Share price remains in a longer run correction and lacks positive momentum for now, there is no rush to buy. IOM is a share to monitor for now...

...from WealthOracle