Iomart Group plc announce an interim dividend of 1.94p per share

DividendMax Ltd.

Iomart Group plc announce an interim dividend of 1.94p per share

The Iomart Plc Board has approved an interim dividend of 1.94p per share (H1 2023: 1.94p) payable on 26 January 2024 to shareholders on the register on 5 January 2024, with an ex-dividend date of 4 January 2024. This interim dividend represents a pay-out ratio of 38% (H1 2023: 37%) of the adjusted diluted earnings per share for the period.

Other financial higthlights include:

Revenue grew 18%, with strong levels of recurring revenues maintained (94%1 of Group revenues). The Concepta and Extrinsica acquisitions provided £6.0m of additional revenue in the period

Cloud managed services revenue, the largest component of the Group, increased strongly, by 27% to £37.0m (H1 2023: £29.2m), from a combination of modest organic growth, price adjustments from last year's energy cost increases, plus approximately £4.3m contribution from the latest two acquisitions

Group EBITDA margin performance of 30.0% is a reduction from H1 2023 of 33.8% but it is slightly ahead of H2 2023 of 29.1%. This trend in margin performance reflects the change in revenue mix and specific timing of inflationary price adjustments during the last financial year

£0.8m higher interest expense in the period, due to rise in bank interest rates, means adjusted profit before tax in the period of £7.6m showed a more modest 3% growth

Cash conversion ratio of 90% is higher than the prior period (H1 2023: 81%) which had included the timing impact of some vendor payments overlapping period ends

Net debt of £48.0m (31 March 2023: £39.8m), comfortable at 1.3 times annualised EBITDA

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