Glasgow’s Iomart expects revenue up 8% to £112m

Glasgow-based cloud computing firm Iomart Group plc said on Friday it expects to report revenue up 8% to £112 million for the year to March 31, 2020, and adjusted profit before tax to fall about 12% to £22.5 million.

“Due to the timing of the year end, the group has experienced minimal impact on trading in the year from the effects of COVID-19 …” said Iomart.

“Our business continuity plans have been successfully implemented and remote working facilitated across our operations.

“Each of our datacentres remains operational to high standards of security and resilience and all customer support has been maintained. 

“At the time of this announcement, we have seen minimal change to our business levels, and we take great comfort from the resilience of our business model, especially the diversity and limited concentration of our customer base.

“We are not significantly exposed to industries that are suffering the worst effects.

“The vast majority of our customers are trading or operating online and may experience an increase in demand for their products and services over the coming months.

“While uncertainty exists over how calendar 2020 will unfold, with some IT investment decisions likely to be delayed in the short-term, it is clear that technology and the Cloud will not lose relevance and indeed the situation we are all facing perhaps reinforces the journey to the Cloud.

“However, the eventual impact on our customer base remains an unknown at this time. 

“We continue to monitor the situation closely as it develops and will provide a further update on trading at the time of the release of our audited financial results.”

Iomart CEO Angus MacSween said: “At this time, our priority is to see our staff and all our customers through this emergency situation as unscathed as possible.

“I am proud of how the team have responded and how well our business continuity has functioned.

“We remain committed to doing all we can to help each other through this. 

“While we may potentially see an impact on our customer base and trading in the coming months, overall the group benefits from high levels of recurring revenue, strong levels of cash generation, a strong balance sheet and a wide and large customer base.”

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Mark McSherry
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.