Iomart announces an 8% drop in its revenues

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Iomart announced an 8% year-on-year drop in revenue to £ 51.9million from £ 56.3million.

The cloud computing company’s business update covered the first half of the fiscal year, ending September 30, noted the board was confident the near-term revenue impacts will be reversed.

He explained that revenue had been affected by lower one-time sales of equipment and advice, as well as lower customer renewals.

Iomart’s profitability percentile remains stable, with adjusted profit before tax and profit before tax of 37.7% and 17.5% of revenue respectively, with absolute cuts of £ 1.2million and 700,000 pounds sterling.

Cash flow during the period was £ 17.9million, after recording depreciation of £ 4million during the period, compared to £ 23.1million during the comparable period of last year.

Reece Donovan, CEO of Iomart, said: “Iomart’s high level of recurring revenue remains a considerable strength, providing good visibility for the rest of the year – current exchanges are in line with board expectations. for the full year.

Last week the company entered into a new £ 100million revolving credit facility, replacing its £ 80million facility which was due to mature in September next year.

It plans to use the additional cash for working capital and investment financing, in accordance with a five-year strategic plan.

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