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magazineIomart flexes value muscles again
Iomart (IOM:AIM) 325.25p
Gain to date: 25.8%
Original entry point: Buy at 258.5p, 23 June 2016
Another valuable bolt-on acquisition (Dediserve in Ireland), organic growth momentum, super cash generation and a 90% jump in the dividend are key stand outs of another excellent trading year for Iomart (IOM:AIM).
‘Textbook delivery,’ and ‘cash machine’ were among the remarks made by analysts and the company is comfortably on track to hit its £100m revenue and 40% EBITDA (earnings before interest, tax, depreciation and amortisation) margins by the end of the year to 31 March 2018 (EBITDA margin was 40.8% last year).
A dip in gross margins from 68% to 64% is most likely due to a modest fall off in consulting income and third-party cloud services supply (Amazon Web Services, for example) but we do not see this as a major concern.
Still among best cloud plays on the UK market. (SF)
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