Iomart to beat full year expectations

Iomart, the Glasgow-based cloud computing and managed hosting services group, has reported a strong half year performance and is now confident that its full year results will be ahead of current consensus market expectations.

This was as a results of both revenue and profits in the six months ended September 30th being substantially ahead of the comparative period last year, it said.

The company continues to maintain focus on the provision of high quality and high margin managed solutions to SMEs and corporate clients. The length of the contract - typically two to three years - enables the company to have a high level of visibility over its earnings for the coming year.

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The firm said that has found that its clients are increasingly staying with it on contract renewal.

It recently acquired Melbourne and Skymarket, which have so far been successfully intergrated into the business and are expected to complement the group's organic earnings growth.

In a statement the company said: "We are delighted with the continued progress of the business. The recent acquisitions are performing in line with our expectations. We are into our fifth year of double digit growth and the demand for our services remains robust as businesses increasingly see the value of outsourced cloud services.

"We believe cloud computing will continue to be critical to all companies over the next few years, as corporate budgets continue to support online strategies, and the move to a hosting environment which delivers significant cost savings and flexibility becomes more compelling. The market potential remains substantial as it is estimated that while there has been a strong increase in hosted services in recent years, around 85% of all servers are still located at a company's own premises."

The share price rose 8.46% to 176.25p by midday.

NR