Cloud cover

Iomart eyeing acquisitions amid solid growth

Lucy Dimes
Lucy Dimes: pleased with progress

Scottish cloud computing firm iomart said it is keeping an eye on acquisition opportunities as it expects to deliver a solid set of financial results.

In a trading update for the year to 31 March it forecasts revenue growth of 10% to approximately £127m and adjusted EBITDA growth of 4% to £37m.

Adjusted profit before tax should come in at about £15.0m, reflectinga hike in interest charges to £4.3m (FY23: £2.9 million). Recurring revenue remains high, at c.91% of group revenue

The Glasgow-based company said cash generation continues to be strong and it has seen good growth in order bookings within its managed services business. Integration of Extrinsica within the group is now well under way.

The full-year results will be presented on 11 June.

Lucy Dimes, who took over as CEO from Reece Donovan last year, commented: “I am pleased with the progress achieved in the year, with the increasing strength of our offering reflected in good order growth.

“Our resilient financial results, extensive customer base and deep technical expertise continue to provide a solid platform for enhanced revenue growth over the medium term, from extended product solutions, focused sales and marketing activity and complementary M&A.

“Our three most recent acquisitions have all added recurring revenue growth in the post-acquisition period, and we see continued M&A activity as an important part of strengthening our overall capability and market growth plans.

“We continue to be active in the identification of targets which add skills, experience and capability to enhance our proposition, as we drive the business to be the UK’s leading secure cloud services provider.”

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