Revenues up 38 per cent for web hosting firm
Iomart has posted a profit hike of more than 600 per cent as more clients move towards hosted data services.
Pre-tax profits soared 618 per cent to £2.8 million for the year to March 31 compared to £0.4 million a year ago.
Revenues were also up 38 per cent from £18.3 million to £25.3 million as the business added an average of 20 new customers a month.
The hosting customer base grew by more than 60 per cent fuelled by the move away from costly fixed IT infrastructure towards data centre hosted IT.
Iomart has also introduced new cloud computing products, such as email and data archiving storage, which has brought in additional business from existing customers.
Chief executive, Angus MacSween said: "Businesses as now much more open to the idea of cloud computing as they see having business critical stuff under a desk is not the safest or most reliable method of ensuring data is secure and always accessible.
"For businesses, hiring their own administrators and IT teams is making less and less sense, particularly in the current climate, and that is being driven more and more by the maturity of the internet and peoples attitude to the web in general."
Iomart now operate five data centres across the UK and employ around 200 people.
The group acquired hosting firm Titan Internet in a £4.2 million deal and cloud computing firm Switch Media in a £1.25 million deal last year.
MacSween added: "We have a significant war chest to fund acquisitions and we can significantly reduce the costs when acquiring new businesses by as much as 20 per cent as that is generally how much they spend on external datacentre hosting.
"We can eliminate those costs which brings with it a significant margin improvement in these businesses when we buy and integrate them into the Iomart group.
"Titan, which we bought last year, was turning over £3.5 million and it was paying datacentre costs of £700,000 a year, which is a cost we have eliminated which means we can start to make savings of £700,000 a year.
"That was a business which would maybe have made £800,000 in earnings after tax and costs which would rise to £1.5 million after those costs are stripped out, which doubled their contribution to the group."
Iomart is proposing 63 per cent rise in the final shareholder dividend to 0.65 pence compared with 0.4 pence in 2010.