Iomart doubles profit

Iomart the Glasgow-based cloud computing and managed hosting services group, doubled full year pre-tax profit and lifted revenue by a third.

The Aim listed company, which has made three acquisitions in the past year, said

pre-tax profit rose to £5.8m for the year ended 31 March 2012 from £2.8m the year before. Revenue grew 33% to £33.5m, of which 95% is recurring revenue.

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Chief executive officer Angus MacSween said, "We have enjoyed an excellent year and continue to consolidate our position within the UK cloud computing and hosting market.We are in a market that is essentially still in its infancy with many years of growth ahead and we fully expect to participate robustly in that growth."

Since the end of the financial year Iomart said trading has been encouraging and in line with expectations, driven by the continuing shift of products and services on to the internet.

Iomart said the acquisition and integration of Switch Media, EQSN and Global Gold have helped to accelerate growth. The group said is now in the position where it is generating substantial amounts of operating cash, making Iomart well positioned to continue on its acquisition trail.

Iomart added, "With the high level of revenue visibility we enjoy we have begun the 2013 financial year in a strong position. I look forward to another exciting year of growth, both organically and through acquisition and look ahead with considerable confidence."

The company has proposed a final dividend of 0.90p per share, up 38% from 0.65p per share the previous year.

CJ