Cloud computing and hosting firm expects to complete "three of four" new acquisitions this year
Hosting and cloud computing firm Iomart saw pre-tax profits more than double in the 2011 year to £5.8 million on the back of three new cash generative acquisitions.
The Glasgow-based company said revenues for the year to March 31, 2012 were up 33 per cent to £33.5 million, and 95 per cent of revenues are now recurring.
Adjusted profits before tax, before taking into account acquisition, asset and finance costs, were £6.8 million compared with £3.93 million the previous year.
In the past year, Iomart acquired Switch Media Ltd, EQSN Ltd and Global Gold Holdings Ltd – all of which Iomart says have contributed to “a substantial increase in profitability over the year”, with integration now complete.
Iomart acquired Liverpool-based cloud computing and hosting firm Switch Media in a £1.3 million deal in April 2011, 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.
Chief executive Angus MacSween said Iomart will looks to close “three or four” more deals this year to acquire managed hosting businesses which have established customer bases.
“Really what we are looking for profitable companies which have a good customer base,” MacSween said.
“Those customer bases then grow with us, as we continue to expand, and in the past year, we have added around 200 new customers to our managed hosting division – our main organic growth brand - on contracts of between two to four years.”
Iomart said cash generated from ordinary operations for the 2011 year rose to £9.6 million compared with £7.1 million the previous year.
The group invested £7.4 million last year – £4.5 million on acquisitions – and £2.4 million on infrastructure and equipment for its managed services offering.
MacSween said: “We have enjoyed an excellent year and continue to consolidate our position within the UK cloud computing and hosting market.
“We have continued to invest in our datacentre and network infrastructure, our people and our product set, giving us a firm platform from which to move forward.
“We are in a market that is essentially still in its infancy with many years of growth ahead and we fully expect to participate robustly in that growth.”
He added: “Since the end of the financial year trading has been encouraging and in line with expectations.
“We continue to be well placed to take advantage of the growing trend of companies organising their internet or ‘cloud’ infrastructure to ensure resilience, scalability, security and value for money.
“We believe we have the relevant skills and experience which we have built up over many years to be the partner of choice for such organisations.
“I look forward with confidence to the year ahead.”
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.
In April, Iomart was named Scottish PLC of the Year at the Insider Scotland plc Awards as well as AIM/Mid sized cap plc of the Year.