iomart posts revenues up 16 per cent to £36.4m as expansion through acquisition continues

Cloud services company iomart has reported consolidated half yearly results up 16 per cent for the six months to September.

The Glasgow firm, which provides hosting and other online services, has also continued its strategy to expand through acquisition by paying up to £11 million for Hemel Hempstead-based company United Communications.

Trading as United Hosting out of the Hertfordshire town where it has its main data centre, it also has rented data centre space in London and Dallas, Amruica, along with a support function in India.

Founded in 1998, its turnover in the 12 months to 30 April was £2.4m, with profits before tax and interest of £1.3m.

iomart’s latest acquisition comes hot on the heels of that of public cloud consultancy SystemsUp in June.

Latest results for iomart, which has around 6,500 customers with the majority of those in the small business sector, showed revenue growth of 16 per cent to £36.4m (H1 2015: £31.5m) including 10 per cent organic growth in the hosting operation (H1 2015: 8 per cent); adjusted EBITDA growth of 11 per cent to £15.5m (H1 2015: £14.0m) and adjusted profit before tax growth of 8 per cent to £8.7m (H1 2015: £8.0m).

Angus MacSween, CEO of iomart, said: “This has been another good trading period for the Group, driven by both organic and acquisitive growth. The cloud market landscape that we occupy continues to evolve and with that, the long term recurring revenue opportunities for iomart.

“We are well established as a major player in providing the flexible cloud solutions that businesses require, whether that be the private cloud, public or hybrid cloud spheres, and we are investing in expanding our teams of highly skilled staff to help our customers navigate and deploy a wider choice of solutions. We believe we are well positioned in the market and remain confident in the Group’s growth prospects.”