The Iomart Group plc Board is proposing to pay a final dividend of 3.00p per share taking the total for the year to 4.94p. This would represent the maximum pay-out ratio under their stated dividend policy of paying up to 50% of adjusted diluted earnings per share. Subject to shareholder approval this proposed final dividend would be payable on 9 September 2024 to shareholders on the register at close on 16 August 2024.
Other financial highlights include:
Strong revenue growth of 10%, achieving record revenues of £127.0m (FY23: £115.6m) supported by two acquisitions in the year and a further year of organic growth within cloud managed services, the area which is the key focus of their commercial and product strategy
Cloud managed services revenue, the largest component of the Group, increased by 17% to £75.2m (FY23: £64.1m), driven by around 3% organic growth and approximately £8.9m revenue contribution from the latest three acquisitions
Group adjusted EBITDA margin performance of 29.7% (FY23: 31.3%) reflecting the change in revenue mix and specific timing of inflationary price adjustments during the last financial year. This changing mix is less impactful at the adjusted EBIT margin level which was more stable year on year at 15.1% (FY23: 15.3%)
£1.4m higher interest expense in the year, due to rise in bank interest rates, means adjusted profit before tax in the period of £15.0m (FY23: £14.8m) showed a more modest 1% growth
Strong cash generation with a cash conversion ratio of 97% (FY23: 94%) testament to their business model and strong focus on cash
Year-end net debt increased by 6% to £42.3m (FY23: £39.8m), a comfortable net debt to adjusted EBITDA ratio of 1.1 times (FY23: 1.1 times)
