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Iomart reports results at lower end of expectations as H2 recovery hurt by UK lockdown
StockMarketWire.com
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Cloud computing group Iomart said the third UK lockdown hindered the growth that was expected in the second half of the year, causing results to be at the lower end of expectations.
For the year ended 31 March 2021, adjusted pre-tax is expected to fall to £20 million from £22.8 million year-on-year, with revenue estimating to fall slightly to £112 million from £112.6 million.
Adjusted earnings before interest, taxes, depreciation, and amortisation, or EBITDA, is estimated to be £41.5 million, down from £43.5 million).
'We have seen revenue growth within our core area of managed cloud services, but overall the cloud services division experienced a contraction, primarily due to a drop in non-recurring hardware reselling activities as customers delayed investment decisions, the company said.
Looking ahead, the company said its revenue profile continues to transition away from legacy self-managed infrastructure revenue to managed cloud revenue, which by its competitive nature tends to have initially lower margins which expand over time and represent a better long term growth opportunity.
'This trend will continue as the Group refocuses towards higher growth sectors, with managed cloud services at the heart of the iomart offering,' it added.
At 9:39am: (LON:IOM) Iomart Group PLC share price was 0p at 325p
Story provided by StockMarketWire.com
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