Iomart Share Price (IOM)

Some bad news on the way?

No sells left after that big print.

Could be back over 40p in no time

They need to sell off some data centres. Not sure whether they can do this, some are possibly too old. Ideally if they could raise £20M from the sale of a few data centres I think this would look a lot more promising. About fair price currently.

Trading update was OK in that I think no more downgrades, but fact remains that debt is waaay too high, margins going backwards and limited cash generation. I make EV about £110m (30m cap, 80m debt) vs about 13m ebit. On these numbers it's not cheap until it starts growing top and bottom line again, and generates more cash.

I still think it should raise money, and don't think institutional investors will touch it until it does (or will invest as part of a raise). But tough for them to do so given where the SP is...

I'm staying in the sidelines until balance sheet is stronger, and/or the business starts heading in a positive direction... GLA.

Remember when there would be multiple posts on trading update day haha