In its latest trading update, the Scottish cloud computing firm estimated adjusted EBITDA to be at £36.2m, and adjusted profit before tax at £14.6m.

The Concepta acquisition contributed to lower margins, and higher UK interest rates raised borrowing charges by £0.9m. The group’s electricity costs increased by about £7 million, but the company passed these costs onto customers.

Recurring revenues remained high at 92% of total revenue, while stronger order booking levels in H2 provide positive momentum for the next financial year.

Reece Donovan, CEO of iomart Group, said: “I am pleased with the progress achieved this year in our transition to a secure hybrid cloud offering.

“We saw our pipeline improve in the first half and this converted to stronger order booking levels as we completed the year. The team has worked hard to ensure momentum in the execution of our strategic plan and continuous improvement within the business.

“This gives us confidence that we will continue to be successful within the wider growing cloud sector.”