Marketing push rewards cloud firm Iomart with new contracts
Angus MacSween: ‘We are on track’
Investment in sales and marketing is paying off for cloud computing firm Iomart which has secured new contracts and opened up further opportunities.
In an update to the market, the Glasgow-based firm said the new business will be reflected in the second half of its financial year.
“Overall revenue growth is in line with management expectations and previously flagged investment in and reorganisation of our commercial operations is now starting to deliver more new customer wins and a stronger pipeline of opportunities,” it said.
“In particular, we have seen an increased level of larger, more complex enterprise contract wins in the first half, whose revenue will start to be recognised in the second half of the year.
“Our on-premise IT brand, Cristie Data, has also delivered a strong performance in the half year, bringing new corporate customers into the Group, with the potential to transition to higher margin managed cloud services revenue in the future.
“The investments we have made in strengthening our sales engine, along with the broader mix of revenue in the first half of the year, means that margin performance will be skewed towards the second half of the year, as new orders start to contribute to revenue.”
The company said many industries and sectors are only now “at the start of the journey to the cloud”, which means that the market opportunity remains large and long-term.
“Despite any short-term delays to decision making due to the current macro-economic and political uncertainty, our increased investment in the business means we are well positioned to take advantage of the opportunity and the Board is confident in the outlook for the full year and beyond.”
Angus MacSween, CEO of Iomart Group, commented: “It is pleasing to see the increased investments we have made in sales and marketing begin to deliver positive results.
“New customer wins in our core cloud services offering are growing, supported by growth from the on-premise business which highlights there is still a long way to go on the cloud journey.
“We are confident we are on track to take advantage of the positive market opportunity and look forward to another successful year of growth.”