Iomart investment delivers new contracts

Glasgow-based cloud computing firm Iomart Group plc said on Tuesday recent investment in its commercial operations is now starting to deliver “more new customer wins and a stronger pipeline of opportunities.”

“In particular, we have seen an increased level of larger, more complex enterprise contract wins in the first half, whose revenue will start to be recognised in the second half of the year,” said Iomart in a trading statement.

“Our on-premise IT brand, Cristie Data, has also delivered a strong performance in the half year, bringing new corporate customers into the group, with the potential to transition to higher margin managed cloud services revenue in the future. 

“The investments we have made in strengthening our sales engine, along with the broader mix of revenue in the first half of the year, means that margin performance will be skewed towards the second half of the year, as new orders start to contribute to revenue.”

Iomart Group CEO Angus MacSween said: “It is pleasing to see the increased investments we have made in sales and marketing begin to deliver positive results.

“New customer wins in our core cloud services offering are growing, supported by growth from the on-premise business which highlights there is still a long way to go on the cloud journey.

“We are confident we are on track to take advantage of the positive market opportunity and look forward to another successful year of growth.”

In June, Iomart said its annual revenue exceeded £100 million for the first time in the year to March 31.

Iomart said revenue grew 6% to £103.7 million and adjusted profit before tax grew 6% to £25.5 million.