Problems fixed

Iomart back on growth track after ‘dropping ball’

Reece Donovan

Reece Donovan: identified problems

Cloud computing firm iomart said it had fixed some of the problems that had led to a loss of some customers and was now on track to restore revenue and profit growth.

Chief executive Reece Donovan said problems that caused a churn in customers, reported in a profits warning in October, were now resolved.

“We identified what was causing the problem and made some changes to our systems and restructured the way we deal with customer requests,” he said in a call with Daily Business.

“The initial results of that are positive. We are good at complex things but we were dropping the ball on some smaller things.”

Adjusted pre-tax profit for the half year to the end of September was 7% lower at £9.1 million (2021: £9.8m) but in line with the board’s expectations and profit before tax was unchanged at £6m. Revenue was 8% lower at £51.9m (2021: £56.3m) due to customer churn.

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