Iomart, Glasgow Cloud Firm, flags 18% revenue growth

Lucy Dimes

Glasgow-based cloud computing firm Iomart Group said on Wednesday it anticipates reporting revenue growth of 18% to £62 million for the six months ended September 30, 2023, with adjusted EBITDA up 4% at £18.5 million.

In a trading update, Iomart said: “Given the bank interest rate increases since last year, the adjusted profit before tax is expected to see a more modest increase, to approximately £7.5m (H1 FY22: £7.4m).

“These results reflect a similar business mix as outlined in the full year results to 31 March 2023, and a £6.5m approximate revenue contribution from the two latest acquisitions.”

On September 18, Iomart announced that Reece Donovan would step down as chief executive officer and leave the company with immediate effect — with executive chair Lucy Dimes becoming chief executive officer on a full-time basis with immediate effect.

In the trading update, Iomart added: “The group’s cash generation from trading continues to be strong and consistent with past performance.

“Net debt increased, as expected, to approximately £49.0m at 30 September 2023 (31 March 2023: £39.8m) following the acquisition on 31 May 2023 of Extrinsica Global Limited, the Microsoft Azure Cloud solutions provider, plus the £4.0m earn-out payment associated with the August 2022 Concepta Capital Limited acquisition.”

In its outlook, Iomart said: “The positive trading performance is a reflection of the strength of the group’s cloud capabilities and business model, the breadth of its customer base and the ongoing growth of the cloud market.

“The recent acquisitions have enhanced the group’s routes to market and depth of skills, improving the customer proposition to ensure iomart and its customers can take full advantage of the broader hybrid cloud market opportunity.

“The board remains confident in the outlook for the long-term prospects for the group.”

Dimes said: “This has been a solid first half of the financial year, seeing growth in both revenue and profitability.

“Since assuming the role of CEO in the last few weeks, I have been impressed by the knowledge and skills of our team, range of service offering and diversity of our customer base.

“These are powerful building blocks for us to take iomart forward with confidence.”