Iomart doubles profit

Cloud computing and managed hosting services firm Iomart said half year pre-tax profit more than doubled and said trading in the second half has started well as its pipeline of opportunities continues to strengthen.

Pre-tax profit rose to £2.4m for the six months ended 30 September 2011 from £1.2m a year earlier. Revenue rose to £15.4m from £11.4m previously with both easyspace and hosting contributing to growth.

The group, which acquired EQSN and Switch Media added, "We continue to expand our skills, product sets and infrastructure to deliver an increasing range of cloud services and expect to continue the growth we have recently enjoyed."

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Iomart, which offers services such as managed hosting, cloud computing, content delivery networks and IP transit, said adjusted EBITDA grew to £5m from £2.7m, helped by the Switch Media acquisition.

Basic earnings per share from operations increased by 112% to 2.23p.

Commenting on the trading environment, CEO Angus MacSween said, "The market opportunities available to us continue to grow as more and more organisations take advantage of the benefits of outsourcing their infrastructure needs to a strong and trusted supplier such as Iomart."

Cashflow from operations increased to £4.1m from £3.1m and net cash at end of period was £3.5m, down from £5.3m previously.

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