Iomart, Glasgow cloud firm, ups H1 revenue to £55m

Glasgow-based cloud computing firm Iomart Group plc said on Wednesday its first-half revenue rose 8% to £55.1 million and profit before tax rose 15% to £8.4 million.

Iomart increased its interim dividend 6% to 2.6p.

Iomart said increased investment in its sales engine has led to an acceleration in organic growth rates with orders well ahead of the prior period “coming through to revenue in the months ahead.”

It said it is in the final planning phases for investment in its acquired Manchester datacentre, where it sees growing demand, and the firm now has over 25 points of presence around the world with capability established in Paris, Frankfurt and Amsterdam in the last six months.

Despite all the good news, Iomart shares fell almost 5%.

Iomart Group CEO Angus MacSween said: “The positive trading performance from the group reflects the investment we are making in our sales engine which has delivered significantly more business from new customers than the comparable period.

“We have also seen an increasing level of larger, more complex enterprise contract wins, whose revenue will start to be recognised in the second half of the year and beyond. 

“This momentum, combined with high levels of visibility within our recurring revenue business model gives increasing confidence that we are on track for an improving trend in our organic growth.

“In addition, we continue to see opportunities to enhance this growth through acquisitions.

“With a wide portfolio of managed cloud services, we are confident in our ability to capitalise on the significant and sustainable market opportunity ahead, underpinning the group’s long-term prospects.”

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Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.