Iomart Share Discussion Threads

[tim1478] 14/6/2018 11:49

I should add I did not realise when results were to come out and bought last week at around 401. The purchase at 360.8 was an average down - but 360 was the price I originally wanted but have missed a few shares by setting limits too ambitiously.

[tim1478] 14/6/2018 11:03

I bought in yesterday at 360.8. Encouraging bounce so far

[retirement_fund] 14/6/2018 08:44

Agree - am surprised by the fall following positive results. I see this is a good buying opportunity. Obviously, the licence audit and penalty isn't great but this is not uncommon for IT service providers - where ultimate responsibility always falls to the service provider rather than end customer. As long as they learn from this and put the necessary controls and cover this in future contracts, that is the only negative in otherwise encouraging results. Am also impressed with their track record of acquisition integrations - not easy

[sampsun] 14/6/2018 01:03

Bargain price now

[dogwalker] 13/6/2018 10:18

Thanks mammyoko.

[mammyoko] 13/6/2018 09:43

Cash impact of investing activities not covered by cash from operating activities leading to doubling of borrowings

£2.1m charge for failing to operate basic controls is unimpressive.

The other adjusting item which does not have a comparable amount in the previous year relates to software licence fees. As a result of an audit undertaken on behalf of a software licensor in the current year, incorrect licence information relating to previous financial years has been identified. The software licensor accepts this situation is not due to any deliberate action of the Group and we are discussing an even stronger collaboration together in the future. The audit covered the four year period ending March 2017 and a sum of £2.1m has been estimated as being due in respect of these four financial years. The final amount could be higher, however not materially, although we believe this is unlikely and it could be lower. The shortfall in licence count identified has been quantified at current year prices rather than the lower pricing that would have been applied in each of the years covered by the audit. Software licencing in a cloud environment is not straightforward with the cloud provider being responsible to the licensor for all software installed on any infrastructure platform provided to its customers, even if the cloud provider does not actually install the software. It is the case that we should have charged our customers more than we have for the use of software on the cloud platforms we provided over the audit period. We are taking steps to improve controls in this area and the adjusted profit before tax for the period of £24.0m includes full provision for all software licences due in that period.

[andrewbaker] 13/6/2018 09:35

Someone started selling in the 400s, and others maybe have followed because of the drop in price caused by supply and demand, IMHO. The results are encouraging, the prognosis good, dividend upped to make up for higher costs; so what's there not to like? When the dust settles, this will go back up in price to the 400s, where it, arguably on value, belongs. (And Schroders have been selling for some time, which likely put a drag on the price.)

[rivaldo] 13/6/2018 09:26

I think this write-up from Techmarketview is instructive. Looks like one-off and short-term factors slightly impacted revenue growth, but nothing that isn't already being sorted out as per the article. And the conclusion is nicely positive:



"Tuesday 12 June 2018

iomart looks to bolster cloud growth

iomartFull year results (to end March 2018) from cloud and hosting provider, iomart, show that the company’s underlying organic growth rate for cloud has slipped to 7% (from 10% last year). Overall revenue (i.e. including its Easyspace business) increased 9% to £97.7m, including the impact of acquisitions. Adjusted EBITDA margin remained at the same level of 40.8%.

The company told us it “didn’t get in front of as many opportunities as we should”, but has already moved to rectify this in the current year by bolstering its sales effort. A new sales director has joined the business and is “already making a difference”, and we also understand there have been moves to strengthen the business development side of the business.

As explained at the half-way mark, a low-margin Government cloud project was a drag on revenue in the year – reducing overall cloud revenue growth to 3%. This project involved iomart doing configuration for a couple of Government clients for Amazon Web Services public cloud services – but did not include the more lucrative managed services that iomart provides for other customers. We understand this business came via its SystemsUp acquisition.

iomart knows what it needs to do to push the growth-rate up, and the firm has been consistent in the past, which bodes very well. We also think its new software-defined fibre network should bring benefits, not just in cost-savings but in future-proofing network provision (e.g. upgrades can be undertaken much more easily)."

[jamieb73] 13/6/2018 09:14

this is plummeting a bit too much for my likimg

[petewy] 13/6/2018 08:46

Hold the line lads steady the Buffs.
My theory: US money is moving out of Europe back to the US.
Obviously my holding has dropped but my Twitter shares have gone thu the roof.

[jontyone] 12/6/2018 10:30

Was Go ogling this morning, looking for news re FY results and came across this item re an outage through one of their subsidiaries at the beginning of the month. Some interesting comments for anyone who has knowledge of this industry. www.theregister.co.uk/2018/06/01/hostinguk_drops_offline_after_losing_farmer_vs_fibre_competition/

[rivaldo] 12/6/2018 08:39

Finncap have increased their target price to 450p (from 415p).

The dividend is better than forecast:

"The board has demonstrated confidence with a greater dividend than expected,
accelerating to a 40% payout ratio ahead of schedule, growing the dividend 20%
rather than 15%E."

Their forecasts are now 20.1p EPS this year and 22.4p EPS next year.

They conclude rather encouragingly:

"iomart represents quality through visibility and cashflow"

[retirement_fund] 12/6/2018 08:12

Agree. Excellent results and very impressive EBITDA margins. Am very impressed

[jimbowen30] 12/6/2018 08:08

Cracking results and positive outlook statement, so should re-rate in time.

[soundbuy] 12/6/2018 07:46

'shouldn't cloud anything going forward'......ho ho


Noticed that, noting to worry about........

All as per the trading update, positive outlook......

[rivaldo] 12/6/2018 07:30

Another set of excellent results, with a very confident outlook going forward.

The licencing fee exceptional is a blot, but looks like a one-off and shouldn't cloud anything going forward given that bright outlook and the "positive" trading already in this new year:



"Current trading and outlook

We are delighted to report another year of excellent results, with increased revenues and profits and the completion of a number of acquisitions, augmenting the Group's customer base and skill set. Trading in the new year has continued in a similarly positive vein.

Since we embarked on our current strategy in 2007, we have successfully executed on our growth strategy, growing revenues from £8m to nearly £100m. We strongly believe that the market for cloud computing solutions we identified at the time presents us with as much opportunity now as it did then and that, together with additional acquisitions, will allow us to continue to execute successfully on the strategy we put in place at that time.

There is still a long runway of opportunity as the "IT as a service" philosophy and delivery unfolds, providing us with considerable scope for long-term, sustained growth. We therefore look to the coming year and beyond with confidence."

[killman2] 01/6/2018 18:31

i sell PFC and buy IOM....sky is the limit...due a takeover in this sector...

[bclissold] 01/6/2018 08:46

Peel Hunt buy 440

[jimbowen30] 22/5/2018 08:35

We should see further rises imo given the positive growth drivers of the business

[rivaldo] 21/5/2018 22:59

New highs here now. I think the final closing price today was 412.5p.

[rivaldo] 17/5/2018 13:40

Good to see IOM consolidating above 400p. Hopefully new highs to come any day - or today.

OT : SoundBuy, we seem to be in more and more stocks together :o))

[soundbuy] 25/4/2018 16:08

Few large(ish) trades over the last couple of weeks have paid a premium for stock, T20s??

Bit of a turn around........all good I'd guess