Acquisitions targeted

Cloud firm Iomart benefits from investment in sales

Angus MacSween 2

Angus MacSween: ‘insatiable growth’

Investment in sales and marketing has paid off for cloud computing firm Iomart which saw a boost to revenue and profits.

The Glasgow-based company invested more than £1m into its sales and account management team is now generating an increasing number of opportunities and a significantly larger pipeline which will deliver higher top line growth in the future. 

Adjusted profit before tax fell by £0.9m to £11.5m (H1 2019: £12.4m) but adjusted EBITDA of £21.8m (H1 2019: £21.1m) is ahead of the prior period comparative, benefitting by £1.5m from the transition to IFRS 16 lease accounting. Unadjusted pre-tax profit rose 15% to £8.4m..

“These profitability measures continue to be market leading and reflect the strength of our business model,” said chief executive Angus MacSween.

“With the insatiable growth in data requirements from across all industries, the demand for computer power, storage and connectivity continues to expand.

“Organisations are increasingly outsourcing these requirements to experts, who can help them navigate a constantly evolving and complex technical landscape, providing high levels of customer support, flexibility and technical knowledge.

“We believe our segment of the cloud market in the UK and beyond remains fragmented and consolidation opportunities continue to be available.  We remain committed to complementing our organic growth through further acquisitions, and the Group remains active in this area.”

Market reaction

Arlene Ewing, investment manager at Brewin Dolphin, said: “It’s another robust set of results from iomart, which has delivered strong earnings growth over the past few years.

“A combination of organic growth and strategic acquisitions have put the business in a good place, and its continued geographical diversification is another positive development.

“While the principal concern about the company has been over its ability to compete with the larger players in the cloud services market – a fact reflected in some share price volatility – iomart continues to thrive.

“The shares are still some way off their peak of last year, but iomart’s prospects are sound in a world that continues to rely more and more heavily on the cloud.”

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