Iomart expects to beat full year forecasts

Cloud computing firm Iomart said it expects to report full year EBITDA and profit ahead of market forecasts and remains confident of further growth as a growing number of companies sign up for their online services.

Cloud computing firm Iomart said it expects to report full year EBITDA and profit ahead of market forecasts and remains confident of further growth as a growing number of companies sign up for their online services.

The aim traded Glasgow-based group said it expects to show an adjusted EBITDA of no less than £16.4m for the year to March 31st 2013 compared to £11.2m before and adjusted pre-tax profit of around £10.6m, up from £6.9m and ahead of market consensus.

The acquisitive group, which owns a string of data centres across the UK, said it saw strong organic growth as well as good performances from its acquired businesses. It sees that pattern continuing as further consolidation takes place.

Iomart Hosting won a substantial number of contracts over the year, the group said, as companies switch to cloud services.

"The group continues to benefit from the growing adoption of cloud type services by organisations who need a strong partner with the necessary infrastructure to provide the certainty, scalability and flexibility they are looking for."

Iomart said it also benefited from the contribution of Melbourne, the hosting business acquired in August 2012. Easyspace has also delivered an improved performance in part as a result of the integration of the acquisitions of Skymarket and HostingUK.

CEO Angus MacSween said: "Iomart continues to benefit from a compelling mix of a growing market, recurring revenues, sticky customers, good forward visibility and a leading competitive position. As a result we remain very confident of further growth in the next financial year and beyond."

CJ

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