27th Nov 2019 10:57
(Alliance News) - Cloud computing firm Iomart Group PLC boosted its interim dividend Wednesday as profit and revenue both grew strongly, with expectations of further revenue growth in the second half of the year.
For the six months ended September, pretax profit widened 15% to GBP8.4 million from GBP7.3 million a year prior. This was after revenue rose 8.3% to GBP55.1 million from GBP50.9 million the year before.
"The positive trading performance from the group reflects the investment we are making in our sales engine which has delivered significantly more business from new customers than the comparable period," Chief Executive Officer Angus MacSween said. "We have also seen an increasing level of larger, more complex enterprise contract wins, whose revenue will start to be recognised in the second half of the year and beyond."
Iomart proposed a 2.60 pence per share interim dividend, up 6.1% from 2.45p the year prior.
"This momentum, combined with high levels of visibility within our recurring revenue business model gives increasing confidence that we are on track for an improving trend in our organic growth," MacSween added. "In addition, we continue to see opportunities to enhance this growth through acquisitions. With a wide portfolio of managed cloud services, we are confident in our ability to capitalise on the significant and sustainable market opportunity ahead, underpinning the group's long-term prospects."
Shares in Glasgow-based Iomart were 5.4% lower at 340.50 pence in London on Wednesday.
By Ahren Lester; [email protected]
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