Iomart Group Plc · LSE:IOM
Iomart — FY2024 Earnings Presentation
34 slides from Iomart's earnings presentation, June 2024
Slide 1: Full Year Results
Full Year Results For year ended 31 March 2024 June 2024 Connect, Secure, Scale
Slide 2: Agenda
Agenda 1. Overview & FY24 Highlights 2. FY24 Financial Performance 3. Strategic Update 4. Q&A
Slide 3: Overview & FY24 Highlights
Lucy Dimes CEO 1. Overview & FY24 Highlights 2. FY24 Financial Performance 3. Strategic Update 4. Q&A
Slide 4: Who we are
Who we are What we do Our business mix ▪ UK-based secure hybrid cloud service provider ▪ Cloud managed services ▪ 500 employees with strong technical skills £127m OVERVIEW & FY24 HIGHLIGHTS ▪ 12 UK data centres connected with 2500km private network ▪ Self-managed infrastructure infrastructure, and 2
Slide 5: Our proposition today
Our proposition today Data Protection & Cyber Security OVERVIEW & FY24 HIGHLIGHTS Self-Managed Managed Hybrid Multi-Cloud Environment Customer Colocation Dedicated Managed iomart Managed On-Prem Data Centre Servers & Private Virtual Public Technology Facilities Hosting Cloud Cloud Cloud Customer Cap
Slide 6: Our opportunity
Our opportunity Cloud adoption is still not halfway through… AI will create a new wave of growth… Majority will adopt a hybrid cloud approach. 79% are Hybrid Cloud provides the best economic OVERVIEW & FY24 HIGHLIGHTS Cost efficiency implementing balance for most private clouds businesses +$40bn spe
Slide 7: Our vision
Our vision The UK’s leading Secure Cloud managed services provider OVERVIEW & FY24 HIGHLIGHTS To enable SME customers to Connect, Secure and Scale… anytime, anywhere. Working with iomart has significantly eased the burden on our internal team. The transition was smooth, and the new cloud-based syste
Slide 8: FY24 highlights
FY24 highlights OVERVIEW & FY24 HIGHLIGHTS Delivering 10% Two Encouraging Started to Enhanced our growth & acquisitions order bookings streamline brands organisational record levels successfully & partner & create single & leadership of revenue completed opportunities – operating model capabilities
Slide 9: FY24 Financial Performance
Scott Cunningham CFO 1. Overview & FY24 Highlights 2. FY24 Financial Performance 3. Strategic Update 4. Q&A
Slide 10: Solid financial performance
Solid financial performance FY24 FINANCIAL PERFORMANCE £127m 91% £19.2m Revenue Recurring Adjusted EBIT 10% Growth Revenue 8% Increase Delivered strong revenue growth of 10% and record revenue levels at £127.0m, supported by recent acquisitions and a further year of organic growth within cloud manag
Slide 11: 10% revenue growth
10% revenue growth FY24 FY23 Cloud Managed Services Disaggregated revenue Change £’000 £’000 ▪ £11.1m increase driven by £8.9m revenue from Cloud Managed Services 75,212 64,115 +17% latest acquisitions, plus 3% organic growth FY24 FINANCIAL PERFORMANCE Self-Managed Infrastructure 28,429 29,616 -4% ▪
Slide 12: Strong cash generation
Strong cash generation FY24 FINANCIAL PERFORMANCE £37.7m 97% 1.1 Adjusted EBITDA Cash Net Debt 4% Increase Conversion Ratio Cash generation continues to be strong with an adjusted EBITDA to operating cash conversion ratio of 97% (2023: 94%). Net debt only increased by 6% to £42.3m (2023: £39.8m) 12
Slide 13: Capital allocation
Capital allocation 30 ▪ M&A: £9.9m invested in cash considerations for recent FY24 FINANCIAL PERFORMANCE 25 acquisitions, plus £3.7m of acquired debt repaid 20 £13.6m invested in ▪ Own assets: £9.5m invested in M&A (including debt fixed assets, the largest part of this repaid) £25.3m is hardware for
Slide 14: Continued progress on M&A
Continued progress on M&A Extrinsica Global - Azure Expertise FY24 FINANCIAL PERFORMANCE Acquired in June 2023, providing a significant step change in iomart’s Microsoft Azure and Hybrid Cloud offerings Accesspoint - Industry Expertise Acquired in December 2023, with managed hosting, security and bu
Slide 15: Other income statement items
Other income statement items FY24 FINANCIAL PERFORMANCE £18.5m £15.0m Adjusted EPS D&A Adj. PBT 9.8p 14.5% of revenue 1% increase 10% lower (tax (2023: 15.9%) on FY23 rate driven) + £1.4m 26% 3.0p Final Dividend Higher interest Effective tax rate 50% maximum expense vs. 2023 18% policy 15
Slide 16: Financial outlook
Financial outlook Reliable recurring revenues Broadcom Pinnacle partnership First two months of the Uptick in FY25 costs ahead of FY24 FINANCIAL PERFORMANCE financial year in line with mitigation and new revenue streams Board expectations from Broadcom opportunities Increase in growth portfolio Seco
Slide 17: Key financial takeaways
Key financial takeaways FY24 FINANCIAL PERFORMANCE Resilient financial performance, with good signs of order growth within our focus area of cloud managed services Recurring revenues remain high with steady margins, and wide sector coverage across client base Strong cash generation, a well-funded ba
Slide 18: Strategic Update
Lucy Dimes CEO 1. FY24 Highlights 2. FY24 Financial Performance 3. Strategic Update 4. Q&A
Slide 19: Strategic framework
Strategic framework Vision The UK’s leading Secure Cloud managed services provider Mission STRATEGIC UPDATE Enable SME customers to Connect, Secure and Scale…anytime, anywhere. Strategic Priorities BIGGER – BETTER – BOLDER 1. Streamlined & Integrated 2. Differentiation Enablers 3. Bolder M&A Focus C
Slide 20: Our evolution
Our evolution Industry Cloud & Business Application Optimisation Services Cyber Resilience STRATEGIC UPDATE Managed Services Hybrid Cloud Migration & Managed Services Uniquely owned UK DC Infrastructure & Global Network ISO 45001 Alignment 20
Slide 21: Our strategic priorities
Our strategic priorities Streamlined Differentiation Bolder M&A 1 2 3 STRATEGIC UPDATE & integrated enablers focus Single operating Focused functional Targeting larger model to drive best transformation acquisitions to drive practise adoption and programmes to drive growth in strategic unified brand
Slide 22: Streamlined & integrated
Strategic Priority 1 Streamlined & integrated Operating Model A fully integrated business with functional STRATEGIC UPDATE centres of excellence for sales, product, service, technology and support services. Single Brand A single go-to-market iomart brand and proposition, with strong sub-brands repos
Slide 23: Differentiation enablers
Strategic Priority 2 Differentiation enablers Compelling Single Brand 1 Great Place to Work STRATEGIC UPDATE Scaled GTM & Strategic Portfolio 2 Compelling Single Brand Sales Channels & Partnerships 3 Strategic Portfolio & Partnerships 4 Customer Service Excellence Great Place to Work 5 Leading Techn
Slide 24: Bolder M&A focus
Strategic Priority 3 Bolder M&A focus 24 acquisitions over last 14 years That had averaged revenue across theses of c£4m, with STRATEGIC UPDATE Concepta being the largest at c£10m. Targeting scale and impact sooner Looking to be bolder with M&A and target growth businesses in selected areas above £1
Slide 25: Our refreshed board
Our refreshed board STRATEGIC UPDATE Richard Last Lucy Dimes Scott Cunningham Chair Chief Executive Officer Chief Financial Officer Appointed June 2024 Chair August 2022, CEO September 2023 Annette Navabi Angus MacSween Adrian Chamberlain Karyn Lamont Non-Executive Director Non-Executive Director No
Slide 26: In summary
In summary 1 Right ingredients: +20yr pedigree, data STRATEGIC UPDATE centres, network, people, capabilities 2 We have the strong foundations to build our Well-funded and we can evolve at pace position as the UK’s through strategic and bolder M&A leading secure cloud services provider 3 Clear growth
Slide 27: Q&A
Lucy Dimes CEO Scott Cunningham CFO Q&A
Slide 28: Appendix
Appendix
Slide 29: The UK's leading Secure Cloud services provider
The UK’s leading Secure Cloud services provider Cloud Services Data Protection Cyber Security Connectivity Value Added Resell Managed Services Professional Services Private Cloud Cyber Resilient Data Protection Endpoint Protection & Response Managed SD-WAN IT Professional Services iomart Cloud Backu
Slide 30: ESG commitments
ESG commitments Investing in People Sustaining the Planet ▪ Continued sponsorship of the “Empowering Women in ▪ Aligned with UK Government targets we are committed Leadership” programme which addresses the lack of to achieving Net Zero by 2050, or earlier, if possible. gender diversity in tech leade
Slide 31: Group income statement
Group income statement Mar-24 Mar-23 £’000 £’000 Revenue 127,049 115,638 Adjusted EBITDA 37,728 36,161 Adjusted EBITDA margin % 29.7% 31.3% Depreciation (15,715) (15,861) Amortisation – other intangibles (2,770) (2,565) Adjusted EBIT 19,243 17,735 Adjusted EBIT margin % 15.1% 15.3% Finance costs (ne
Slide 32: Cash flow and net debt
Cash flow and net debt Mar-24 Mar-23 £’000 £’000 Adjusted EBITDA 37,728 36,161 Operating cash flow 36,647 33,839 Taxation (710) 48 Cash paid on tangible & intangible assets (11,805) (10,849) Payment for acquisition of subsidiary net of cash (9,890) (10,307) Repayment of debt acquired on acquisition
Slide 33: For further information
For further information: iomart Group plc Tel: 0141 931 6400 Lucy Dimes, Chief Executive Officer & Chair Scott Cunningham, Chief Financial Officer Investec Bank PLC (Nominated Adviser and Broker) Tel: 020 7597 4000 Patrick Robb & Virginia Bull Alma Strategic Communications Tel: 020 3405 0205 Carolin
Slide 34: © IOMART GROUP PLC
Kejmart © IOMART GROUP PLC