Iomart Group Plc · LSE:IOM
Iomart — H1 FY2025 Earnings Presentation
27 slides from Iomart's earnings presentation, Nov 27, 2024
Slide 1: Interim Results
Lucy Dimes, CEO & Scott Cunningham, CFO Interim Results For 6 Months Ended 30th September 2024 27th November 2024 1
Slide 2: Table of Contents
INTRODUCTION Table of 1. Delivering Our Strategy - ‘Bigger, Better, Bolder’ Contents 2. Atech Acquisition & Combined Strength 3. H1 FY25 Performance Iomart Group results for six months ended 4. Strategic Outlook 30th September 2024. 5. Questions & Answers Lucy Dimes Scott Cunningham Iomart Group plc
Slide 3: Delivering Our Strategy
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Slide 4: Delivering our strategy
1. DELIVERING OUR STRATEGY Streamlined & Integrated Delivering 1 Single operating model to drive best practise All sales, product, marketing and customer management under single leaders. adoption and unified brand positioning. our strategy Differentiation Enablers Transformational 2 Focused function
Slide 5: Rejuvenated Iomart
1. DELIVERING OUR STRATEGY Rejuvenated Iomart The acquisition marked a significant +650 +6,000 £161m milestone in our deeply skilled and customers supported in of combined revenue strategy to be “Bigger, accredited colleagues across the globe delivering business critical managed services delivered i
Slide 6: Atech Acquisition
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Slide 7: Introducing Atech
2. ATECH ACQUISITION Introducing Security Azure Microsoft 365 Atech 24 X 7 x 365 Managed Services & Security Ops Centre Established in 2009, Fully managed services and security for business Atech has scaled to and enterprise customers. become one of the Professional Services most accredited partners
Slide 8: Attractive Customer Base
2. ATECH ACQUISITION Attractive Multi-year tenure customer base focused on mid-market and enterprise customers (200 to Customer 2,500+ users) across multiple sectors including Financial Services, Insurance and Base Energy. Focused on customers requiring a full end-to- Atech brings proven end offerin
Slide 9: Significant Potential Together
2. ATECH ACQUISITION Significant Potential Together Combined Sales MSFT capabilities, Industrialisation We are combining and Marketing accreditation and of customer care Unlock greater our capabilities power and pipeline. partner track record. and retention. opportunities immediately to unlock reven
Slide 10: Mobilising a powerful combination
2. ATECH ACQUISITION Mobilising Bigger, Better, Bolder a powerful Phase One (Oct - Dec) Phase Two (Jan - March) Phase Three (April +) combination Mobilise combination plan Progress unified values, Combined Group and Sales The Catalyst and progress HR, Finance, employee proposition and Kick off sessi
Slide 11: H1 FY25 Performance
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Slide 12: Mixed H1 Financial Performance
3. H1 FY25 PERFORMANCE Mixed H1 Financial +30% £62m 91% £6.6m Performance Order Bookings Flat YoY Recurring EBIT Growth Revenue Revenue £3m Reduction Increased proportion of revenue portfolio in growth segments. Revenue flat, lower renewal levels and timing of order billings negating the stronger or
Slide 13: H1 YoY Revenue Flat
3. H1 FY25 PERFORMANCE H1 YoY Disaggregated revenue H1 FY25 £’000 H1 FY24 £’000 Change Cloud Managed Services £1.2m increase driven by £2.8m revenue from FY23 acquisitions, Revenue Cloud Managed Services Self-Managed Infrastructure 38,253 12,394 37,022 14,730 +3% -16% plus 4% organic revenue reducti
Slide 14: Other Items Of Note
3. H1 FY25 PERFORMANCE Other Items £10.4m D&A £4.3m Adj. PBT Of Note 16.8% of revenue £3.3m reduction Adj. diluted EPS 2.6p (H1 FY24: 14.5%) on H1 FY24 D&A, interest and 50% Lower cashflow more consistent in H1 FY25. H1 operating cash +£0.3m 29% 1.3p Interim flow impacted by More stable interest Adj
Slide 15: Capital Allocation
H1 FY25 PERFORMANCE Capital £0.7m M&A considerations ▪ M&A: Limited to £0.7m of contingent consideration Allocation payments. Final £1.4m of earn-out consideration paid in October Lower level of capital (Accesspoint). investing activities in £4.0m invested in H1. fixed assets ▪ Own assets: £4.0m inv
Slide 16: Post Balance Sheet Event
3. H1 FY25 PERFORMANCE Post Atech Acquisition Balance Competitive process concluding in a £57m purchase price on debt and cash free basis. Sheet Event Atech historic trading to 30 th September 2024: Extension of revolving ▪ LTM £34.4m revenue credit facility shows ▪ £4.1m Adjusted EBITDA banks suppo
Slide 17: Strong Financial Platform
3. H1 FY25 PERFORMANCE Strong Financial Non- Non- Recurring Platform Revenue Recurring Mass 14% Mass Revenue Hosting Hosting 10% 8% 10% Atech adds Cloud Managed Cloud Managed Self- significantly to Self- Managed Services Managed Services Infra further strengthen 61% Infra 58% 17% 22% our existing st
Slide 18: Strategic Outlook
Strategic Outlook
Slide 19: Bolder, Leading Proposition
4. STRATEGIC OUTLOOK Bolder, PROFESSIONAL SERVICE S Leading Leve rage Our Expertise MO ES Proposition IC DE RV RN SE Acc W ud O UD lo e C ent ele Ad rat RK s O i m op CL Our combined skills, st t Inv im e on Di t e i Op git accreditations and al Copilot for M365 alliance partnerships, Jumpstart Prog
Slide 20: Better, Positioned To Compete
4. STRATEGIC OUTLOOK Better, Cloud transformation and public cloud acceleration. Private Cloud is here to stay, with growing hybrid need. Demand for data protection and cyber security growing. Positioned It is estimated 79% of enterprise technology A staggering 83% of To Compete that 60% of business
Slide 21: H2 Focus Areas
4. STRATEGIC OUTLOOK H2 Focus 1 Bigger Brand, market positioning and sales enablement to capitalise on Areas revenue growth opportunities, including cross-selling. Confident outlook and well positioned Better for stronger second 2 Continue streamlining operating model to drive efficiencies, best pra
Slide 22: Bigger, Opportunity Ahead
4. STRATEGIC OUTLOOK Bigger, Our enhanced proposition is well positioned to capitalise on the underlying drivers for cloud computing, including the increasingly complex technological landscape Opportunity which drives customer needs for a trusted managed services. Ahead Our combined 1. Attractive Gr
Slide 23: Questions & Answers
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Slide 24: Iomart Group plc Board
APPENDIX Iomart Group plc Board Richard Last Lucy Dimes Scott Cunningham Chair Chief Executive Officer Chief Financial Officer Appointed June 2024 Annette Navabi Angus MacSween Karyn Lamont Adrian Chamberlain Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director
Slide 25: Group Income Statement
APPENDIX Group £’000 £’000 Income Statement Sept-24 Sept-23 Income Revenue 61,950 62,037 Statement Adjusted EBITDA Adjusted EBITDA margin % 16,952 27.4% 18,598 30.0% Depreciation (7,432) (7,713) Amortisation – other intangibles (2,968) (1,278) Finance costs (net) (2,287) (2,026) Adjusted pre-tax pro
Slide 26: Cash Flow and Net Debt
APPENDIX £’000 £’000 Cash Flow Cash Flow Sept-24 Sept-23 and Adjusted EBITDA Operating cash flow 16,952 11,050 18,598 16,824 Net Debt Taxation Cash paid on tangible & intangible assets (1,036) (7,825) (813) (7,564) Payment of contingent consideration (680) (4,000) Payment for acquisition of subsidia
Slide 27: Thank You
THANK Leading the way in Secure Cloud Managed Services Iomart is the UK’s Leading provider of secure cloud managed YOU. services, simplifying the complexities of modern technology for businesses worldwide. Our team of 650+ experts deliver cutting- edge solutions in cloud infrastructure, modern workp