iomart Group plc expects pre-tax profits to top £10 million
RapidSwitch parent company credits growth in adoption of cloud services for positive trading update
RapidSwitch parent company, UK cloud computing company iomart Group plc (AIM:IOM), has issued a positive pre-close trading statement for the year ending 31 March 2013 ahead of the announcement of its full year results.
For the year to 31 March 2013, iomart Group expects to show an adjusted EBITDA(1) of not less than £16.4 million (FY2012: £11.2 million) and adjusted(2) profit before tax of approximately £10.6 million (FY2012: £6.9 million) both ahead of market consensus. The Group has delivered strong organic growth as well as good performances from its acquired businesses and the Board sees that pattern continuing as further consolidation takes place.
Angus MacSween, CEO of iomart Group plc, said: "iomart continues to benefit from a compelling mix of a growing market, recurring revenues, sticky customers, good forward visibility and a leading competitive position. As a result we remain very confident of further growth in the next financial year and beyond."
The Group's main enterprise hosting brand iomart Hosting continued to win a substantial number of contracts over the year, as the Group benefitted from the growing adoption of cloud type services by organisations who need a strong partner with the necessary infrastructure to provide the certainty, scalability and flexibility they are looking for. It also benefitted from the contribution of Melbourne Server Hosting, the Manchester hosting business acquired in August 2012.
The Group's domain name and web hosting brand Easyspace also delivered an improved performance in part as a result of the successful integration of the two acquisitions of Skymarket and HostingUK.
iomart Group plc expects to report its full year results for the year ending 31 March 2013 on Wednesday 29 May 2013.
(1)adjusted EBITDA means earnings before interest, tax, depreciation, amortisation, share based payment charges acquisition related costs and non-recurring acquisition integration costs.
(2)adjusted profit before tax means profits before, tax, share based payment charges, amortisation of acquired intangibles, acquisition related costs, non-recurring acquisition integration costs and mark to market adjustments in respect of interest swap arrangements.