Glasgow-based cloud computing firm iomart said it would hike its dividend 90% after revenue rose 17% to £89.6 million and adjusted profit before tax grew 18% to £22.4 million in the year to March 31.

Proposed final dividend will increase to 6p per share from 3.15p per share last year.

iomart chairman Ian Ritchie said: “As we indicated in our trading update which was issued at the end of March we have decided to improve our dividend policy to reflect the ongoing growth that we have been delivering, the level of cash we generate, and the confidence we continue to have in our future prospects.”

Despite the results, iomart shares fell more than 5% to around 320p to give the firm a current stock market value of about £351 million, according to Bloomberg data.

Angus MacSween, iomart CEO said: “This has been another year of strong growth and trading since the year end remains good.

“The long term opportunity and runway for success remains large and long.

“iomart remains well positioned to take advantage of that opportunity and to deliver further significant growth.”