Iomart Share Discussion Threads

[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

[2lb] 25/1/2023 11:47

Still unexciting.

One wonders how they are going to deliver on that £200m revenue target within the next three years outside of passing on energy price increases.

[zipstuck] 06/12/2022 08:27

Unexciting

[simon gordon] 28/11/2022 15:20

RCN look the pick of the UK quoted sector. Growing, scaling and have forward momentum.

[pansybeast] 28/11/2022 14:57

Getting ridiculously cheap IMO, just added at 114.55. Being priced as if all their profits come from Crypto...

[2lb] 11/10/2022 07:17

"it is not expected that margins will fully recover and that profit for the full year is therefore likely to be at the lower end of the Board's original expectations."

[dogwalker] 10/10/2022 07:18

No, you're right bunlop.Wonder when it'll be.