Glasgow-based cloud computing firm Iomart Group said on Tuesday it expects revenues for the year ending March 31, 2023, will be ahead of the firm’s original expectations.
Iomart said the second half of the year will include the full extent of energy price uplifts passed onto customers.
“As a consequence, the board expects revenues for the year ending 31 March 2023 will be ahead of their original expectations, ” said the Glasgow firm.
“Full year profits are expected to be in line with expectations, with the second half profit showing progress on H1.”
In half yearly results for the period ended September 30, 2022, Iomart said revenue increased 1% to £52.6 million but adjusted profit before tax fell 19% to £7.4 million.
“Reduction in adjusted EBITDA and adjusted profit before tax reflects the revenue mix and higher staff costs in the period necessary to retain the skills and capabilities that are important for our growth strategy,” said Iomart.
Interim dividend per share is down 20% to 1.94p.
Iomart CEO Reece Donovan said: “This has been another period of considerable operational activity, against the backdrop of ongoing macro-economic challenges.
“The steps we have taken to strengthen our capabilities and offering, increase effectiveness of our sales activities and our clear focus on execution gives us a stronger foundation to accelerate growth.
“We believe the diversity and limited concentration of our customer base, high level of recurring revenue, and strong cash flow generation should shelter us from the worst of the expected economic pressures as the UK enters a recessionary period.
“The critical nature of the infrastructure and digital services we provide in a growing cloud market will allow us to support businesses well into the future.
“Our stronger customer retention levels provide an improved backdrop as we see pipeline growth from our wider product offering, and the board remains confident in the outlook for the long-term prospects for the group.”