Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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Bodes well, good institutions who understand the business
Two excellent shareholding RNS's at once this morning :o))
Liontrust have increased to 17.01% from 16.02% and now have 18.4m shares:
Https://www.investegate.co.uk/iomart-group-plc--iom-/rns/holding-s--in-company/201807310700292273W/
And Investec have emerged as a new major shareholder with over 5%, or 5.42m shares:
Https://www.investegate.co.uk/iomart-group-plc--iom-/rns/holding-s--in-company/201807310700302277W/
IOM have been tipped in this weekend's Mail, in an article about how to profit from "picks and shovel" stocks in the cloud computing boom:
Http://www.thisismoney.co.uk/money/investing/article-6000697/How-cash-big-digital-revolution-cloud-computing.html
"There are also firms which operate in the deeper hardware space, running data centres full of servers. Whereas Amazon, Microsoft and Google are public cloud providers, sharing spare server capacity with individuals and businesses, Iomart provides private cloud capabilities.
This means that a business can rent actual space on a server dedicated to them, and know exactly where their data is being stored. Compliance concerns might make this important to them, Jayaweera says, or it may run older software incompatible with the public cloud companies.
Rutherford says there are strong opportunities. 'Cloud is now the main method for delivering IT. It's not some fad such as cryptocurrency. The benefits are proven and helping drive business growth.'"
Brokers don't seem to have looked at the cloud services market in which IOM is a minnow. A takeover may not even be likely since other major providers have their own infrastructure. I sold the other day 'cos it's gonna fall back, but might be tempted to buy back in around 370. Good luck, The Drill.
each day. Hopefully new highs coming soon.
IOM were highlighted in last week's Shares Mag as one of two stocks meeting Jim Slater's investing criteria:
"Iomart (IOM:AIM) 370p
Glasgow cloud computing specialist Iomart (IOM) may not trade on a price to earnings growth ratio of less than 1 desired by GARP investors. However, it is more difficult to find software firms on discounted valuations particularly ones with Iomart’s upwards of 90% recurring revenues.
Stockopedia’s screening process believes that Iomart still fits the bill when looking for Jim Slater-type investments.
Iomart’s strong organic growth is likely to be augmented by M&A activity which is
underpinned by a new £80m lending facility.
Stockbroker Peel Hunt sees the potential for the company to double revenue from the near-£100m achieved in the March 2018 financial year.
Clients run the gamut from BCA Marketplace’s (BCA) Webuyanycar consumer venture to well-known corporate entities such as Universal Music."
Some good movement today
Nice - tipped in the Times Tempus' column:
Https://www.thetimes.co.uk/edition/business/chief-s-share-spree-sends-weak-signal-hcsvgm3h7
"Iomart
More businesses and public sector organisations are moving away from IT arrangements in which servers and infrastructure are located in their offices.
These physical elements can be held in distant data centres often operated by third parties. It is this change that Iomart believes it can exploit. The Glasgow company provides businesses with the online and digital infrastructure they need. It has data centres around the UK and a growing presence in Europe, Asia and the United States.
Angus MacSween, its co-founder and chief executive, has long said that the transition into the cloud would be slow and steady but could give Iomart huge scope to expand.
There was a 300p per share approach valuing the company at £320 million from a rival, Host Europe, in September 2014, which investors thought should have been accepted. However, the talks broke down and the Aim-listed business, in which Mr MacSween has a near 16 per cent stake, has grown well since then through a mixture of organic expansion and acquisition.
Annual results released this month showed underlying profit rising 7 per cent to £24 million on revenue of £97.7 million for the 12 months to March 31. The company was loss-making and produced turnover of £11.8 million less than in 2009. The most recent dividend was lifted 20 per cent to 71.8p per share while the company's market capitalisation is more than £425 million.
Mr MacSween has secured further firepower for deals with a new £80 million financing facility. As he points out, most customers tend to stick with IT providers if they do a good job with 90 per cent of Iomart's revenue classed as recurring. It also has a wide spread of sectors with no single customer accounting for more than 1 per cent of its revenue.
The shares are up more than 20 per cent over the past 12 months and have been changing hands at close to 400p in recent days. Finncap analysts recently increased their target price on the shares from 415p to 450p while N+1 Singer and Shore Capital are among the others who are bullish on Iomart's prospects.
ADVICE Buy
WHY Loyal customers and strong track record of meeting targets"
Back up to £4 after silly drop on news!
I have held Iom since they were 46p, the price has dropped almost allways after the results and gradually recovered over the next few weeks. I could have made a fortune if I had shorted them just before the results and bought back in after results many times. For me the key result is - Cashflow from operations 40.8 million. I am sure that they willbe taken oover at some point, but I have thought that for years. Goodluck.
Usual sell the news profit taking, buy the dip. Ex divi August....Excellent statement.
Why the big drop in sp today?
Finncap have increased their target price to 450p (from 415p). The dividend is better than forecast: "The board has demonstrated confidence with a greater dividend than expected, accelerating to a 40% payout ratio ahead of schedule, growing the dividend 20% rather than 15%E." Their forecasts are now 20.1p EPS this year and 22.4p EPS next year. They conclude rather encouragingly: "iomart represents quality through visibility and cashflow"
Another set of excellent results, with a very confident outlook going forward. The licencing fee exceptional is a blot, but looks like a one-off and shouldn't cloud anything going forward given that bright outlook and the "positive" trading already in this new year: Https://www.investegate.co.uk/iomart-group-plc--iom-/rns/final-results/201806120700060397R/ "Current trading and outlook We are delighted to report another year of excellent results, with increased revenues and profits and the completion of a number of acquisitions, augmenting the Group's customer base and skill set. Trading in the new year has continued in a similarly positive vein. Since we embarked on our current strategy in 2007, we have successfully executed on our growth strategy, growing revenues from �8m to nearly �100m. We strongly believe that the market for cloud computing solutions we identified at the time presents us with as much opportunity now as it did then and that, together with additional acquisitions, will allow us to continue to execute successfully on the strategy we put in place at that time. There is still a long runway of opportunity as the "IT as a service" philosophy and delivery unfolds, providing us with considerable scope for long-term, sustained growth. We therefore look to the coming year and beyond with confidence."
http://www.thisismoney.co.uk/money/investing/article-5678603/Five-AIM-50-shares-worth-considering-theyre-going-cheap.html Iomart mentioned in here as one of the five aim 50 tips, probably the reason for the gains last week. Be good if the new buyers could push us over �4 this week
AIM big boy going cheap; to paraphrase - Pre-tax profit has increased by two-thirds in last four years and could approach �28 million this year. That would put the shares on 16 times prospective 2018-19 earnings.
IOM are featured today as one of 5 companies in the FTSE AIM UK 50 "which are growing and throwing off cash but are on much lower multiples": http ://www.iii.co.uk/articles/499598/these-aim-big-boys-are-going-cheap "Iomart (IOM) Iomart (IOM) provides managed cloud-based services and is a highly cash generative growth business. Iomart operates eight data centres in the UK and has access to a network of data centres around the world. It offers a range of services including back-up, storage, security and hosted virtual desktops. The share price is 10 times the level it was at the end of 2007. In the year to March 2018, revenues were 9% higher, suggesting a figure of about �98 million, and underlying pre-tax profit improved from �22.4 million to �23.9 million. The full year figures will be published on 12 June. The dividend could be raised from 6p a share to 6.9p a share, which would be around 2.7 times covered by earnings. Iomart has made significant investment in its data centres so net debt reached �24.5 million at the end of September 2017. Part of the investment will provide enough network resources capacity for several years. Iomart is in a good position to be a consolidator in the sector. A potential deal to buy Germany-based managed hosting company PlusServer did not go ahead last year. Iomart, itself, has attracted interest from bidders in the past. Cinven-backed Host Europe made an opportunistic, indicative bid of between 275p and 285p a share nearly four years ago. Pre-tax profit has increased by two-thirds in that four-year period and the share price is higher. Pre-tax profit could approach �28 million this year. That would put the shares on 16 times prospective 2018-19 earnings."
The IC have just today published their new AIM 100, the guide to the junior market. And in at no.52.... Https://www.investorschronicle.co.uk/shares/2018/04/20/the-aim-100-2018-60-to-51/ "52. Iomart According to market intelligence provider IDC, global spending on public cloud services and infrastructure is set to reach $160bn (�114bn) in 2018, a rise of 23 per cent on last year. Reassuring news - you�d think - for cloud computing companies everywhere, Iomart (IOM) among them. It�s rarely that simple, and Iomart must operate in a crowded market within which giants such as Amazon Web Services (AWS) compete. But in terms of public sector cloud hosting, the Aim company�s broker Shore Capital notes that AWS primarily handles very large contracts with knowledgeable customers, whereas Iomart�s skills and consultancy benefit medium-sized enterprises �without deep IT skills�. Clearly, there�s room for both markets. For Iomart, a historic combination of organic growth and well-integrated acquisitions points towards continued momentum. Encouragingly, a recent trading update for the group�s financial year to March stated that sales and adjusted pre-tax profits would meet consensus expectations � unsurprising given Iomart�s high levels of recurring revenue. At 365p, the shares trade at 20 times finnCap�s forecast adjusted EPS for FY2018, which we think offers reasonable value for a growing computing company with a healthy dividend yield. Buy."
decided to buy a position after watching it for 6 months, 3yr chart looks lovely and �3.60 has been bought into many times which supports the growth story at play here. one to tuck away in this years isa
and the tip is also featured in the FT too today: Https://www.ft.com/content/a02bcb9a-3815-11e8-8eee-e06bde01c544 "Buy: Iomart (IOM) Cloud computing group Iomart (IOM) expects to report revenue growth of about 9 per cent for its March 2018 year-end, in line with consensus forecasts writes Harriet Clarfelt. Expected adjusted pre-tax profit of �23.9m, up 7 per cent on 2017, also meet market estimates. Segmentally, cloud services won a �substantial� amount of new business over the period � buoyed by the first full-year contribution from Cristie Data and new sales from Dediserve, Simple Servers and Sonassi, the three businesses acquired between May and November 2017. Panmure Gordon notes that Iomart�s growth appears to have endured despite the progress made by the larger cloud providers, a trend the broker expects to continue. At 362p, shares in Iomart are up on our original buy call (238p, Aug 27 2015) and trade on a multiple of 20 times Panmure Gordon�s forecast EPS of 18.3p for the 2018 financial year � not hugely demanding for a software company demonstrating strong growth. The group launched its maiden half-year dividend in December, meaning there�s now income to boot. Buy."
Positive stuff from the respected Techmarketview web site: Http://www.techmarketview.com/ukhotviews/archive/2018/03/29/iomart-keeps-up-the-consistency "Thursday 29 March 2018 iomart keeps up the consistency A pre-close trading statement from iomart shows the cloud and hosting firm will hit growth of 9% in the year to end March 2018. Adjusted EBITDA grew at a similar rate to �39.8m. The company�s Cloud Services segment has �continued to win a substantial amount of new business� during the 12 months, as the trend for buyers to seek external cloud specialists for guidance and ongoing management continues. Acquisitions have played an important role in the development of iomart over the years, and in the year just closing that is no exception. The period sees a full year contribution from Cristie Data (a Stroud based data storage, backup and virtualisation solutions provider) and contributions from Dediserve, Simple Servers and Sonassi (all acquired in 2017). These acquisitions have all added to iomart�s geographical reach and expertise. Meanwhile, the firm's Easyspace business (which provides hosting/web services to small and micro businesses), has performed in line with expectations, growing organically. iomart�s approach is consistent, as is its performance (see iomart continues consistent cloud execution) � and we see no reason why it shouldn�t continue to do well in the market. Full results are out 12th June."
N+1 Singer reiterate their Buy and 465p target today.
Peel Hunt retain their Buy and 440p target, whilst Finncap also retain their 415p target: Http://investing.thisismoney.co.uk/broker-views/
Yet again. Results nicely in line and showing good growth. A company in the cloud technology sweet spot in its sector. Lots of recurring income. A sound Balance Sheet. Etc etc. Time for a re-rating: Https://www.investegate.co.uk/iomart-group-plc--iom-/rns/trading-statement/201803290700033142J/ "Given the sustainable nature of the market opportunity, a broadening product offering and a growing reputation within the cloud industry, the Board anticipates that growth will continue in the future." "iomart has delivered yet another year of consistent growth. With a significant and sustainable market opportunity ahead of us, we continue to invest in our business and people to ensure we are well positioned for future growth. We continue to see strong demand for our services and remain confident in our prospects. Our healthy balance sheet, high levels of revenue visibility and our strong and increasing cash conversion leaves us in good financial health."