Price Target Changed • Feb 12
Price target decreased by 18% to UK£0.40 Down from UK£0.49, the current price target is an average from 4 analysts. New target price is 145% above last closing price of UK£0.16. Stock is down 59% over the past year. The company is forecast to post a net loss per share of UK£0.067 next year compared to a net loss per share of UK£0.49 last year. Buy Or Sell Opportunity • Feb 11
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 37% to UK£0.17. The fair value is estimated to be UK£0.22, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Meanwhile, the company became loss making. For the next 3 years, revenue is forecast to grow by 2.7% per annum. Earnings are also forecast to grow by 87% per annum over the same time period. Major Estimate Revision • Dec 19
Consensus EPS estimates fall by 29% The consensus outlook for fiscal year 2026 has been updated. 2026 expected loss increased from -UK£0.045 to -UK£0.059 per share. Revenue forecast unchanged at UK£158.8m. IT industry in the United Kingdom expected to see average net income growth of 45% next year. Consensus price target down from UK£0.50 to UK£0.49. Share price rose 3.7% to UK£0.20 over the past week. Reported Earnings • Nov 28
First half 2026 earnings released: UK£0.045 loss per share (vs UK£0.003 profit in 1H 2025) First half 2026 results: UK£0.045 loss per share (down from UK£0.003 profit in 1H 2025). Revenue: UK£77.7m (up 26% from 1H 2025). Net loss: UK£5.07m (down UK£5.45m from profit in 1H 2025). Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the IT industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 81 percentage points per year, which is a significant difference in performance. Announcement • Nov 26
iomart Group plc Provides Earnings Guidance for the Full Year Ending 31 March 2026 iomart Group plc provided earnings guidance for the full year ending 31 March 2026. For the year, the company expects revenue in the range of £159 million to £160 million. Buy Or Sell Opportunity • Oct 13
Now 24% undervalued after recent price drop Over the last 90 days, the stock has fallen 34% to UK£0.20. The fair value is estimated to be UK£0.26, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Meanwhile, the company became loss making. For the next 3 years, revenue is forecast to grow by 4.8% per annum. Earnings are also forecast to grow by 107% per annum over the same time period. Buy Or Sell Opportunity • Sep 12
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 30% to UK£0.20. The fair value is estimated to be UK£0.26, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Meanwhile, the company became loss making. For the next 3 years, revenue is forecast to grow by 4.8% per annum. Earnings are also forecast to grow by 107% per annum over the same time period. Reported Earnings • Sep 05
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: UK£0.49 loss per share (down from UK£0.058 profit in FY 2024). Revenue: UK£143.5m (up 13% from FY 2024). Net loss: UK£55.1m (down UK£61.6m from profit in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the IT industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 57 percentage points per year, which is a significant difference in performance. Announcement • Sep 02
iomart Group plc, Annual General Meeting, Sep 25, 2025 iomart Group plc, Annual General Meeting, Sep 25, 2025. Location: the companys offices, 3rd floor, 11 21 paul street, ec2a 4ju, london United Kingdom Major Estimate Revision • Aug 06
Consensus EPS estimates upgraded to UK£0.04 loss The consensus outlook for fiscal year 2026 has been updated. 2026 losses forecast to reduce from -UK£0.048 to -UK£0.04 per share. Revenue forecast steady at UK£159.4m. IT industry in the United Kingdom expected to see average net income growth of 40% next year. Consensus price target of UK£0.53 unchanged from last update. Share price was steady at UK£0.23 over the past week. New Risk • Jul 28
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.1x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.1x net interest cover). Minor Risks Share price has been volatile over the past 3 months (10% average weekly change). Market cap is less than US$100m (UK£25.9m market cap, or US$34.9m). Reported Earnings • Jul 25
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: UK£0.49 loss per share (down from UK£0.058 profit in FY 2024). Revenue: UK£143.5m (up 13% from FY 2024). Net loss: UK£55.1m (down UK£61.6m from profit in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the IT industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 58 percentage points per year, which is a significant difference in performance. Announcement • Jul 25
iomart Group plc Proposes Not to Declare A Final Dividend for 2025 The Directors of iomart Group plc are proposing not to declare a final dividend for 2025 (2024: 3.00 pence) reflecting the higher level of indebtedness in the Group following the Atech acquisition and reduced profitability in the current year. Announcement • Jul 18
iomart Group plc to Report Fiscal Year 2025 Results on Jul 24, 2025 iomart Group plc announced that they will report fiscal year 2025 results at 8:00 AM, GMT Standard Time on Jul 24, 2025 Buy Or Sell Opportunity • Jul 10
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 5.3% to UK£0.29. The fair value is estimated to be UK£0.37, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.4% over the last 3 years. Earnings per share has declined by 27%. Revenue is forecast to grow by 26% in 2 years. Earnings are forecast to decline by 181% in the next 2 years. Price Target Changed • May 07
Price target decreased by 9.2% to UK£0.81 Down from UK£0.90, the current price target is an average from 5 analysts. New target price is 210% above last closing price of UK£0.26. Stock is down 79% over the past year. The company is forecast to post earnings per share of UK£0.0066 for next year compared to UK£0.058 last year. Major Estimate Revision • May 07
Consensus EPS estimates fall by 15% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from UK£0.0077 to UK£0.0066 per share. Revenue forecast steady at UK£143.0m. Net income forecast to shrink 93% next year vs 3.8% growth forecast for IT industry in the United Kingdom . Consensus price target down from UK£0.90 to UK£0.81. Share price rose 7.8% to UK£0.26 over the past week. Major Estimate Revision • Apr 24
Consensus EPS estimates fall by 11% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from UK£0.0087 to UK£0.0077. Revenue forecast unchanged from UK£143.0m at last update. Net income forecast to shrink 56% next year vs 4.0% growth forecast for IT industry in the United Kingdom . Consensus price target down from UK£1.00 to UK£0.90. Share price fell 7.9% to UK£0.24 over the past week. New Risk • Apr 08
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 24% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings are forecast to decline by an average of 24% per year for the foreseeable future. Minor Risks Dividend is not well covered by earnings (142% payout ratio). Profit margins are more than 30% lower than last year (2.7% net profit margin). Market cap is less than US$100m (UK£36.0m market cap, or US$46.0m). New Risk • Feb 28
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of British stocks, typically moving 10% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (10% average weekly change). Minor Risks Dividend is not well covered by earnings (142% payout ratio). Profit margins are more than 30% lower than last year (2.7% net profit margin). Market cap is less than US$100m (UK£45.4m market cap, or US$57.2m). Major Estimate Revision • Feb 11
Consensus EPS estimates increase by 14% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from UK£0.036 to UK£0.041. Revenue forecast steady at UK£142.0m. Net income forecast to grow 22% next year vs 20% growth forecast for IT industry in the United Kingdom. Consensus price target down from UK£1.47 to UK£1.33. Share price fell 35% to UK£0.44 over the past week. Price Target Changed • Feb 10
Price target decreased by 16% to UK£1.24 Down from UK£1.47, the current price target is an average from 5 analysts. New target price is 166% above last closing price of UK£0.46. Stock is down 66% over the past year. The company is forecast to post earnings per share of UK£0.036 for next year compared to UK£0.058 last year. New Risk • Jan 23
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: UK£79.9m (US$98.4m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (142% payout ratio). Share price has been volatile over the past 3 months (8.9% average weekly change). Profit margins are more than 30% lower than last year (2.7% net profit margin). Market cap is less than US$100m (UK£79.9m market cap, or US$98.4m). Upcoming Dividend • Jan 02
Upcoming dividend of UK£0.013 per share Eligible shareholders must have bought the stock before 09 January 2025. Payment date: 31 January 2025. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 6.0%. Within top quartile of British dividend payers (5.8%). Higher than average of industry peers (3.5%). Reported Earnings • Nov 29
First half 2025 earnings released: EPS: UK£0.003 (vs UK£0.031 in 1H 2024) First half 2025 results: EPS: UK£0.003 (down from UK£0.031 in 1H 2024). Revenue: UK£62.0m (flat on 1H 2024). Net income: UK£384.0k (down 89% from 1H 2024). Profit margin: 0.6% (down from 5.5% in 1H 2024). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the IT industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Announcement • Nov 28
Schroder Investment Management Limited acquired 6.56% stake in iomart Group plc (AIM:IOM) from Liontrust Asset Management PLC (LSE:LIO). Schroder Investment Management Limited acquired 6.56% stake in iomart Group plc (AIM:IOM) from Liontrust Asset Management PLC (LSE:LIO) earlier this month. Schroders Investment Management has bought 8.4 million shares from Liontrust Asset Management.
Schroder Investment Management Limited completed the acquisition of 6.56% stake in iomart Group plc (AIM:IOM) from Liontrust Asset Management PLC (LSE:LIO) on earlier this month. New Risk • Nov 28
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 2.7% Last year net profit margin: 5.3% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (175% payout ratio). Share price has been volatile over the past 3 months (8.9% average weekly change). Profit margins are more than 30% lower than last year (2.7% net profit margin). Announcement • Nov 27
iomart Group plc Approves Interim Dividend for the Six Months Ended 30 September 2024, Payable on 31 January 2025 iomart Group plc approved an interim dividend for the six months ended 30 September 2024 of 1.3 pence per share (first half 2024: 1.94 pence) payable on 31 January 2025 to shareholders on the register on 10 January 2025, with an ex-dividend date of 9 January 2025. Buy Or Sell Opportunity • Nov 26
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 25% to UK£0.94. The fair value is estimated to be UK£1.19, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.2% over the last 3 years. Earnings per share has declined by 19%. For the next 3 years, revenue is forecast to grow by 9.5% per annum. Earnings are forecast to decline by 1.7% per annum over the same time period. Announcement • Nov 12
iomart Group plc to Report First Half, 2025 Results on Nov 27, 2024 iomart Group plc announced that they will report first half, 2025 results on Nov 27, 2024 Buy Or Sell Opportunity • Nov 07
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 20% to UK£0.97. The fair value is estimated to be UK£1.22, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.2% over the last 3 years. Earnings per share has declined by 19%. For the next 3 years, revenue is forecast to grow by 9.5% per annum. Earnings are forecast to decline by 1.7% per annum over the same time period. Buy Or Sell Opportunity • Oct 04
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 23% to UK£0.99. The fair value is estimated to be UK£1.26, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.2% over the last 3 years. Earnings per share has declined by 19%. For the next 3 years, revenue is forecast to grow by 3.5% per annum. Earnings are also forecast to grow by 8.1% per annum over the same time period. Major Estimate Revision • Oct 02
Consensus EPS estimates fall by 37%, revenue upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from UK£132.0m to UK£135.7m. EPS estimate fell from UK£0.065 to UK£0.041 per share. Net income forecast to shrink 27% next year vs 6.0% growth forecast for IT industry in the United Kingdom . Consensus price target down from UK£1.87 to UK£1.51. Share price fell 4.1% to UK£1.05 over the past week. Announcement • Oct 01
iomart Group plc (AIM:IOM) acquired Atech Support Limited from Pelican Capital LLP and others for £57 million. iomart Group plc (AIM:IOM) acquired Atech Support Limited from Pelican Capital LLP and others for £57 million on October 1, 2024. Acquisition is being fully funded through existing cash and the newly increased £125 million revolving credit bank facilities. Atech CEO Ryan Langley joining iomart as Group CTO. For the period ending June 30, 2024, Atech Support Limited reported total revenue of £32.2 million and EBITDA of £3.3 million. The largest shareholder of Atech Support is Pelican Capital with 54% of all the issued share capital, with two of the original founders having 30% between them. The balance is held between the management team who will remain with the business. Investec Bank plc acted as financial advisor for iomart Group plc.
iomart Group plc (AIM:IOM) completed the acquisition of Atech Support Limited from Pelican Capital LLP and others on October 1, 2024. Price Target Changed • Oct 01
Price target decreased by 20% to UK£1.60 Down from UK£2.00, the current price target is an average from 5 analysts. New target price is 39% above last closing price of UK£1.15. Stock is down 28% over the past year. The company is forecast to post earnings per share of UK£0.047 for next year compared to UK£0.058 last year. Announcement • Sep 26
iomart Confirms Exclusive Talks with Regard to the Possible Acquisition of Kookaburra Topco The board of iomart Group plc (AIM:IOM) noted the recent press speculation and confirms that the Company is in exclusive talks with regard to the possible acquisition of Kookaburra Topco Limited (‘Kookaburra’), the holding company of Atech Support Limited (‘Atech’) (the ‘Possible Acquisition’). There is no guarantee that the Possible Acquisition will proceed, however, if it were to proceed, it would be financed from the Company's existing cash resources and banking facilities and be classified as a Substantial Transaction under the AIM Rules for Companies. The Directors of iomart believe that the Possible Acquisition of Atech would accelerate iomart's growth strategy, positioning the enlarged group as the leading provider of secure public, private and hybrid cloud services to mid-sized enterprises in the UK. Further announcements will be made as and when appropriate. Price Target Changed • Sep 23
Price target decreased by 8.8% to UK£1.87 Down from UK£2.05, the current price target is an average from 5 analysts. New target price is 65% above last closing price of UK£1.13. Stock is down 29% over the past year. The company is forecast to post earnings per share of UK£0.065 for next year compared to UK£0.058 last year. Reported Earnings • Aug 15
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: UK£0.058 (down from UK£0.064 in FY 2023). Revenue: UK£127.0m (up 9.9% from FY 2023). Net income: UK£6.44m (down 7.9% from FY 2023). Profit margin: 5.1% (down from 6.0% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.3%. Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the IT industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 19% per year whereas the company’s share price has fallen by 21% per year. Announcement • Aug 10
iomart Group plc, Annual General Meeting, Sep 03, 2024 iomart Group plc, Annual General Meeting, Sep 03, 2024. Location: the companys offices, 6 atlantic quay, 55 robertson street, g2 8jd, glasgow United Kingdom Upcoming Dividend • Aug 08
Upcoming dividend of UK£0.03 per share Eligible shareholders must have bought the stock before 15 August 2024. Payment date: 09 September 2024. Payout ratio is on the higher end at 86%, however this is supported by cash flows. Trailing yield: 4.0%. Lower than top quartile of British dividend payers (5.6%). Higher than average of industry peers (2.4%). Declared Dividend • Jun 13
Final dividend reduced to UK£0.03 Dividend of UK£0.03 is 14% lower than last year. Ex-date: 15th August 2024 Payment date: 9th September 2024 Dividend yield will be 3.6%, which is higher than the industry average of 2.4%. Sustainability & Growth Dividend is covered by both earnings (63% earnings payout ratio) and cash flows (25% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 37% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jun 12
Full year 2024 earnings released: EPS: UK£0.058 (vs UK£0.064 in FY 2023) Full year 2024 results: EPS: UK£0.058 (down from UK£0.064 in FY 2023). Revenue: UK£127.0m (up 9.9% from FY 2023). Net income: UK£6.44m (down 7.9% from FY 2023). Profit margin: 5.1% (down from 6.0% in FY 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the IT industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 19% per year whereas the company’s share price has fallen by 21% per year. Valuation Update With 7 Day Price Move • May 14
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to UK£1.46, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 25x in the IT industry in the United Kingdom. Total loss to shareholders of 41% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£1.31 per share. Major Estimate Revision • Apr 12
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from UK£0.061 to UK£0.054 per share. Revenue forecast steady at UK£128.4m. Net income forecast to grow 7.8% next year vs 9.2% growth forecast for IT industry in the United Kingdom. Consensus price target broadly unchanged at UK£2.05. Share price fell 5.5% to UK£1.37 over the past week. Buy Or Sell Opportunity • Feb 15
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 18% to UK£1.30. The fair value is estimated to be UK£1.65, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 19%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 37% in the next 2 years. Upcoming Dividend • Dec 28
Upcoming dividend of UK£0.019 per share at 3.5% yield Eligible shareholders must have bought the stock before 04 January 2024. Payment date: 26 January 2024. Payout ratio is on the higher end at 91%, however this is supported by cash flows. Trailing yield: 3.5%. Lower than top quartile of British dividend payers (5.8%). Higher than average of industry peers (2.5%). Reported Earnings • Dec 07
First half 2024 earnings released: EPS: UK£0.031 (vs UK£0.035 in 1H 2023) First half 2024 results: EPS: UK£0.031 (down from UK£0.035 in 1H 2023). Revenue: UK£62.0m (up 18% from 1H 2023). Net income: UK£3.43m (down 10% from 1H 2023). Profit margin: 5.5% (down from 7.3% in 1H 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the IT industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 19% per year whereas the company’s share price has fallen by 20% per year. Price Target Changed • Dec 06
Price target increased by 8.0% to UK£2.03 Up from UK£1.88, the current price target is an average from 4 analysts. New target price is 29% above last closing price of UK£1.57. Stock is up 37% over the past year. The company is forecast to post earnings per share of UK£0.066 for next year compared to UK£0.064 last year. Announcement • Nov 28
iomart Group plc to Report First Half, 2024 Results on Dec 05, 2023 iomart Group plc announced that they will report first half, 2024 results on Dec 05, 2023 Announcement • Oct 11
Iomart Group plc Provides Earnings Guidance for the Six Months Ended 30 September 2023 iomart Group plc provided earnings guidance for the six months ended 30 September 2023. For the period, the Board anticipates reporting revenue growth of approximately 18% for the six months to £62.0 million (H1 FY22: £52.6 million). Board Change • Sep 26
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Senior Independent Non-Executive Director Adrian Chamberlain was the last independent director to join the board, commencing their role in 2023. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Aug 11
iomart Group plc, Annual General Meeting, Sep 05, 2023 iomart Group plc, Annual General Meeting, Sep 05, 2023, at 09:00 Coordinated Universal Time. Location: at the Company's offices at 6 Atlantic Quay, 55 Robertson Street Galsgow United Kingdom Announcement • Jul 17
Iomart Group plc Announces Lucy Dimes, Non-Executive Chair, Assume the Role of Executive Chair iomart Group plc announced that Lucy Dimes, Non-Executive Chair, will, from 17 July 2023, assume the role of Executive Chair, on a part-time basis, with a focus on the further development of external facing corporate opportunities, alongside the Executive Directors. The additional executive resource and experience will provide greater capacity for iomart to take full advantage of the varied and wide opportunities which exist within the IT Cloud marketplace. Announcement • Jun 27
iomart acloud computing and IT managed services business Announces Change of Registered Office iomart acloud computing and IT managed services business announced on 26 June 2023 that its registered office has changed with immediate effect to 6 Atlantic Quay, 55 Robertson Street, Glasgow G2 8JD. This new office address is also the new registered office for all iomart subsidiary companies which are registered in Scotland. New Risk • Jun 15
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 6.0% Last year net profit margin: 9.1% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.2% average weekly change). Profit margins are more than 30% lower than last year (6.0% net profit margin). Reported Earnings • Jun 14
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: UK£0.064 (down from UK£0.086 in FY 2022). Revenue: UK£115.6m (up 12% from FY 2022). Net income: UK£7.00m (down 26% from FY 2022). Profit margin: 6.0% (down from 9.1% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) missed analyst estimates by 7.5%. Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 8.8% growth forecast for the IT industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 19% per year whereas the company’s share price has fallen by 23% per year. Announcement • Jun 06
iomart Group plc (AIM:IOM) agreed to acquire Extrinsica Global Holdings Limited. iomart Group plc (AIM:IOM) agreed to acquire Extrinsica Global Limited for £12.61 million on June 5, 2023. The initial consideration, debt settlement and any earn out consideration will be financed through a combination of existing bank facilities and cash on the Company's balance sheet. For the year ended March 31,2023 Extrinsica generated revenues of £7.4million and EBITDA of £0.1million. Investec Bank PLC acted as financial advisor to iomart Group plc (AIM:IOM) in the deal. Announcement • May 23
iomart Group plc Announces Board Changes iomart Group plc announced the appointments of Dr. Annette Nabavi and Adrian Chamberlain as Independent Non-Executive Directors of the Company. Annette's appointment will start on 25 May 2023 and she will be appointed Chair of the Remuneration Committee from 1 June 2023. Adrian's appointment, as Senior Independent Non-Executive Director of the Company, will start from 1 June 2023. Following six years on the Board, Richard Masters, Non-Executive Director will not stand for re-election at the forthcoming Annual General Meeting in September 2023 and will leave the Board at that time. Annette brings over 30 years of experience in operational and advisory roles in the technology sector including significant expertise in driving growth through acquisition and partnerships. Annette currently sits on the board of Eleco plc and serves as the Chair of its Remuneration Committee. She has held several Non-Executive Director roles, including a seven-year tenure at AIM listed Maintel Holdings Plc, where she also chaired the Remuneration Committee. She has substantial experience in the area of Remuneration through her involvement with the Quoted Companies Alliance (QCA), where she supported the update to the Remuneration Committee Guide. Annette is Finance Director for Women in Telecoms and Technology. Adrian has considerable experience across the technology and telecoms sector, having spent a significant period of his executive career with Cable & Wireless plc before becoming CEO of Message Labs and then Achilles, both cloud-based SaaS businesses. He has substantial experience in strategy formulation, growing turnover and establishing presence in new markets. Adrian is a Non-Executive Director on the board of Alfa Financial Software Holdings plc, a listed global software provider, a Non-Executive and Senior Independent Director at Cambridge University Hospitals NHS Foundation Trust and was, until recently, the Chair of the Board of eConsult Health Ltd. Valuation Update With 7 Day Price Move • Apr 28
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to UK£1.53, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 26x in the IT industry in the United Kingdom. Total loss to shareholders of 48% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£1.37 per share. Upcoming Dividend • Dec 29
Upcoming dividend of UK£0.019 per share Eligible shareholders must have bought the stock before 05 January 2023. Payment date: 27 January 2023. Payout ratio is a comfortable 72% and this is well supported by cash flows. Trailing yield: 4.5%. Lower than top quartile of British dividend payers (5.8%). Higher than average of industry peers (3.2%). Reported Earnings • Dec 07
First half 2023 earnings released: EPS: UK£0.035 (vs UK£0.044 in 1H 2022) First half 2023 results: EPS: UK£0.035 (down from UK£0.044 in 1H 2022). Revenue: UK£52.6m (up 1.2% from 1H 2022). Net income: UK£3.82m (down 21% from 1H 2022). Profit margin: 7.3% (down from 9.3% in 1H 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 16% growth forecast for the IT industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has fallen by 31% per year, which means it is performing significantly worse than earnings. Price Target Changed • Dec 06
Price target decreased to UK£2.40 Down from UK£2.98, the current price target is an average from 4 analysts. New target price is 107% above last closing price of UK£1.16. Stock is down 26% over the past year. The company is forecast to post earnings per share of UK£0.079 for next year compared to UK£0.086 last year. Valuation Update With 7 Day Price Move • Oct 12
Investor sentiment deteriorated over the past week After last week's 17% share price decline to UK£1.33, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 23x in the IT industry in the United Kingdom. Total loss to shareholders of 61% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£2.34 per share. Buying Opportunity • Aug 25
Now 21% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be UK£2.34, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 14%. For the next 3 years, revenue is forecast to grow by 5.0% per annum. Earnings is also forecast to grow by 2.8% per annum over the same time period. Reported Earnings • Aug 08
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: UK£0.086 (down from UK£0.093 in FY 2021). Revenue: UK£103.0m (down 7.9% from FY 2021). Net income: UK£9.40m (down 7.9% from FY 2021). Profit margin: 9.1% (in line with FY 2021). Revenue missed analyst estimates by 1.9%. Earnings per share (EPS) exceeded analyst estimates by 5.7%. Over the next year, revenue is forecast to grow 4.9%, compared to a 18% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 14% per year whereas the company’s share price has fallen by 18% per year. Upcoming Dividend • Aug 04
Upcoming dividend of UK£0.036 per share Eligible shareholders must have bought the stock before 11 August 2022. Payment date: 02 September 2022. Payout ratio is a comfortable 70% and this is well supported by cash flows. Trailing yield: 3.4%. Lower than top quartile of British dividend payers (5.1%). In line with average of industry peers (3.7%). Buying Opportunity • Jul 21
Now 21% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be UK£2.21, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 14%. For the next 3 years, revenue is forecast to grow by 3.0% per annum. Earnings is also forecast to grow by 0.9% per annum over the same time period. Reported Earnings • Jun 15
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: UK£0.086 (down from UK£0.093 in FY 2021). Revenue: UK£103.0m (down 7.9% from FY 2021). Net income: UK£9.40m (down 7.9% from FY 2021). Profit margin: 9.1% (in line with FY 2021). Revenue missed analyst estimates by 1.9%. Earnings per share (EPS) exceeded analyst estimates by 5.7%. Over the next year, revenue is forecast to grow 2.0%, compared to a 16% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has fallen by 20% per year, which means it is performing significantly worse than earnings.