Iomart revenue rises 12% to record £115.6m

Iomart CEO Reece Donovan

Glasgow-based cloud computing firm Iomart Group said its revenue increased 12% to a record £115.6 million in the year to March 31, 2023, “reflecting a combination of improved customer renewal levels, organic revenue growth within core cloud managed services, inflationary pricing adjustments  … together with the acquisition of Concepta …”

Adjusted profit before tax fell 13% to £14.8 million, reflecting “revenue mix, together with investment in upskilling employees’ capabilities, appropriate wage increases and cost of living support.”

Total dividend for the year will be 5.44p, which chair Lucy Dimes said is “at the maximum pay-out ratio under our stated dividend policy of paying up to 50% of adjusted diluted earnings per share.”

Dimes said: “We believe this is appropriate given our funding position, robust business model and strength of our balance sheet.”

In its outlook, Iomart said the first two months of the new financial year are in line with internal expectations, with revenues ahead of the equivalent prior period, with a mix of organic and acquisitive growth

The two recent acquisitions have expanded the group’s capabilities and routes to market, making the solution portfolio relevant to a wider audience …” said Iomart.

“Strategic steps and the momentum achieved in the second half of the last financial year underpins the board’s confidence in the outlook for the long-term prospects for the group …”

Iomart CEO Reece Donovan said: “This has been another busy year at Iomart for the full team. 

“Together, we have generated good momentum across both the commercial and operational areas.

“A higher level of M&A activity has also been pleasing to see, with two acquisitions having been completed in the last ten months.

These acquisitions have expanded our capabilities and routes to market, making our solution portfolio relevant to a wider audience.

“The increase in the effectiveness of our sales activities, the operational improvements made, the resilience of our business model and our clear focus on execution gives us a stronger foundation on which to accelerate organic growth whilst making selective acquisitions.”