More firms move to the cloud
Surge in data management fuels growth at Iomart
Reporting a 14% rise in adjusted pre-profits at the Glasgow-based firm, chief executive Angus MacSween (pictured) said it is “still at the very early stages of this opportunity with enormous scope for long term growth.”
He said: “More and more applications and workloads are moving to the cloud, data volumes are growing exponentially, the emergence of the Internet of Things is creating ever more data, and alongside this a new generation of users now expect everything to be delivered to them through their mobile device of choice.
“This means an ever growing complexity in the choices and permutations available when forming an IT policy for cloud and we believe that this will drive opportunity for those companies, such as Iomart, who are agile and have the correct skill-sets for success.”
He noted the changing business landscape as firms are forced to make changes to cope with technology and regulatory compliance.
“All businesses are now digital businesses to a greater or lesser extent,” he said. “They are confronted by an increasingly complex set of cloud decisions in terms of cost, value, effectiveness, complexity, security, data protection and compliance.
“Indeed the new legal requirements around data, particularly the EU General Data Protection Regulation (GDPR), are going to impact on all organisations. They will introduce significant new rules and compliance obligations for all organisations around data protection in the cloud with global implications and we believe will drive further opportunity for iomart in helping organisations become compliant and secure.
“The traditional way of moving to the cloud, being a private or hybrid approach, is here for the foreseeable future and the long term recurring revenue opportunity for Iomart remains compelling.”
Mr MacSween said growth among the global players was also creating opportunities for companies such as Iomart.
“The public cloud vendors led by AWS and Microsoft continue to win market share. It is becoming clear that they will require an ecosystem of businesses orbiting them to provide services and support. The public cloud has introduced another level of complexity to the choices that businesses have in their future IT buying decisions and we believe with that increase in choice and complexity comes opportunity.
“Our challenge is to navigate through these early days of the further evolution of cloud adoption to ensure we have the skills and resources necessary to be successful in that space. The addition of SystemsUp to the Group during the period has enhanced our ability to provide solutions involving public cloud.
“Iomart set out on executing its current strategy almost 10 years ago. I believe that the opportunity over the next 10 years is significantly greater.”
During the year the company acquired SystemsUp and United Hosting. Ian Ritchie, chairman, said both are performing well and further acquisitions were possible.
“We believe there will be other opportunities to allow us to continue to add to our organic growth through acquisition,” he said.
Profit before tax up 21% to £13.0m (2015: £10.8m)
Adjusted profit before tax up 14% to £19.0m (2015: £16.6m)
Revenue up16% to £76.3m (2015: £65.8m)
Adjusted EBITDA up 11% to £32.3m (2015: £29.1m)
Adjusted diluted earnings per share3 from operations up 14% to 14.44p (2015: 12.63p)
Cashflow from operations up 14% to £30.9m (2015: £27.2m)
Adjusted PBT margins maintained at 25% (2015: 25%)
Proposed final dividend up 26% to 3.15p per share (2015: 2.50p per share)