This update comes ahead of full year results on 11 June 2024. For the year, the group expects to report revenue growth of 10% to approximately £127 million, up from £115.6m the previous year, adjusted EBITDA growth of 4% to approximately £37.5m (FY23 £36.2m), and adjusted profit before tax of approximately £15m (FY23 £14.8m).

The increase in interest expense to approximately £4.3m (FY23 £2.9m) has impacted the adjusted profit before tax.

iomart’s cash generation remained strong, with the year-end net debt expected to be approximately £43m (FY23 £39.8m), after M&A-related cash payments of approximately £15m. This represents a net debt to adjusted EBITDA ratio of approximately 1.1 times.

Lucy Dimes, CEO of iomart Group, 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.”