Iomart Group Plc · LSE:IOM
Iomart — H1 FY24 Earnings Presentation
22 slides from Iomart's earnings presentation, December 2023
Slide 1: Interim Results 6 months ended 30 Sept 2023
Interim Results 6 months ended 30 Sept 2023 Lucy Dimes CEO & Scott Cunningham CFO December 2023 1
Slide 2: Agenda
Agenda 1 Introduction 2 Overview of the period 3 Financial Review 4 Strategic update 5 Summary & Outlook 2
Slide 3: Introduction
Introduction
Slide 4: iomart at a glance
iomart at a glance Secure hybrid cloud computing £116m turnover (FY23) & robust margins & managed services business, based in the UK Delivering hybrid managed cloud, data Cloud services (90% group revenue) & management and security, modern workplace and Web hosting & domains (10% group revenue) doma
Slide 5: One of the largest data centre networks in the UK
One of the largest data centre networks in the UK connected by 2500km of resilient fibre network and 25 global points of presence • We control the environment, the processes and the end to end service • We prioritise our customers rather than being in the queue for a 3rd party technician • We contro
Slide 6: Segmentation and Service Portfolio
Segmentation Service Portfolio Cloud Services Revenue Mass Hosting Non-Recurring Self- Managed Revenue Cloud Managed Services Infrastructure VAR (Hardware & Hybrid Data Management Domain & SOHO Hosting Licences) + Modern Dedicated Servers Cloud and Security Services Professional Workplace Services S
Slide 7: Overview of the period
Overview of the period
Slide 8: H1 Review: Delivering on our Strategy
H1 Review: Delivering on our Strategy DELIVERING GROWTH ENHANCING ORGANISATIONAL DEEPENING SKILLS AND CAPABILITIES CAPABILITIES • Revenue growth of 18%, stable • Sales and marketing capability • Enhancing engineering design, build EBITDA margins creating momentum in order bookings and run expertise
Slide 9: Customer Case Study
Customer Case Study • Customer Context: Brighton based company providing passenger information for some of the world’s largest airlines • Customer Requirements: Enable burstable and scalable resources without having heavy capex expenditure, expand into Middle East, maximize IaC (Infrastructure as Co
Slide 10: Financial Review
Financial Review
Slide 11: Financial overview H1 FY24
Financial overview H1 FY24 • Revenue up 18%, underpinned by strong levels of recurring revenues (94% of Group revenue) • The Concepta & Extrinsica acquisitions - positive £6.0m of additional revenue to the Group • Underlying margins stable, reflecting the revenue mix & specific timing of inflationar
Slide 12: Group income statement
Group income statement Revenue: increase of 18% (+£9.5m) Group income statement Cloud Services segment revenue £55.8m (H1 FY23: £46.3m) • Cloud Managed Services increase of £7.8m: organic growth, including the price Sept-23 Sept-22 adjustments for last year’s energy cost increases, plus £4.3m from t
Slide 13: Group income statement
Group income statement Sept-23 Sept-22 £’000 £’000 Adj. PBT: Overall increase of 3% (£0.2m) Revenue 62,037 52,557 Adjusted EBITDA • Depreciation charge reduced by £0.3m, 13% of recurring 18,598 17,794 revenue (H1 FY23: 16%) Adjusted EBITDA margin % 30.0% 33.8% Depreciation (7,713) (7,980) • Amortisa
Slide 14: Cash flow and net debt
Cash flow and net debt Sept-23 Sept-22 £’000 £’000 Operating cash flow Adjusted EBITDA 18,598 17,794 • EBITDA conversion rate of 90% (H1 FY23: 81%), first half of year typically Operating cash flow 16,824 14,473 has a lower conversion ratio Taxation (813) (6) • Long history of strong EBITDA to opera
Slide 15: M&A - Extrinsica Global
M&A - Extrinsica Global Extrinsica Global (EXG) Extrinsica Global ("EXG") - Deal Financials • Microsoft Azure skills, established customer references and track • Completed 5 June 2023 record • Initial consideration of £4.0m (satisfied £2m in cash and £2m in iomart • EXG is a Microsoft Solutions Part
Slide 16: M&A - Accesspoint Technologies
M&A - Accesspoint Technologies Accesspoint Technologies Accesspoint Technologies - Deal Financials • Established in 2009 in North East London • Completed 4 December 2023 (post period-end) • Solely focused on the UK legal industry clients • Initial consideration of £4.5m paid in cash, with a potentia
Slide 17: Strategic Update
Strategic Update 17
Slide 18: Market trends
Market trends Hybrid cloud Cost smoothing Cyber Security is Application Integrated ICT Moving from data Is Generative AI continues to be and predictability a growing ‘plan modernisation Managed Services management to relevant for our the solution of is becoming the for investment’ for and optimisati
Slide 19: Renewed focus areas going forward
Renewed focus areas going forward Sales Effectiveness Service Excellence Platform & Portfolio Coherence • Improved ITIL industry standards • Create greater brand and portfolio • Further refine sales model and new alignment - deployment, incident and cohesion and clarity of USPs logo/business develop
Slide 20: Summary & Outlook
Summary & Outlook 20
Slide 21: Confident Outlook
Confident Outlook More relevant portfolio for our customers’ needs Improved foundations within the business on which to grow Operating in active and long-term growing hybrid cloud market Ongoing proactive and proven M&A strategy Current Trading is in line with Board expectations Confident in the out
Slide 22: Any Questions ?
Any Questions ? famart 22