Internet hosting and cloud computing firm says results lifted by new contracts and acquisitions
Internet hosting and cloud computing firm Iomart expects to report pre-tax profits of £6.7 million for the 2011 year.
The pre-tax profit estimate is almost double the £3.6 million in pre-tax profit reported for the 2010 financial year, a rise of 86 per cent.
Earnings before interest, tax, depreciation and amortisation is expected to be “no less than £11 million” for the 2011 year ending March 31, 2012, a rise of 66 per cent on £6.6 million reported last year.
In a trading update posted today, Iomart said it had won a “substantial number of contracts over the year” from increasing demand from firms outsourcing their IT infrastructure to firms like Iomart.
Its web hosting division, Easyspace, is also reported to have delivered “improved performance in terms of both profitability and cash generation” in part from the successful integration of acquisitions made in the past year.
Iomart acquired Liverpool-based cloud computing and hosting firm Switch Media in a £1.3 million deal last April, which added 100,000 new customers to the group.
It then added Essex-based web hosting firm Global Gold Holdings in a £1.2 million deal and Glasgow-based managed hosting firm EQSN Ltd for £2.47 million, both last November.
Iomart said it will continue to “pursue additional opportunities for continued accelerated growth through acquisitions” in the 2012 financial year.
Chief executive Angus MacSween said: “Iomart continues to benefit from a compelling mix of recurring revenues, sticky customers, good forward visibility and a leading competitive position. As a result we remain very confident of further growth in the next financial year and beyond.”
Iomart owns its own infrastructure network, now comprising five UK based data centres, offering managed hosting, content delivery networks, data centre services and cloud computing.
Glasgow-based Iomart reported a pre-tax profit rise of 106 per cent for the first half of 2011 on a 36 per cent rise in revenues to £15.4 million.