4th Dec 2018 12:35
LONDON (Alliance News) - Iomart Group PLC said Tuesday that contribution from acquisitions and substantial growth in its sales pipeline due to re-structuring of sales and marketing activities resulted in increased first-half revenue and adjusted earnings.
The Scottish cloud computing company also said it will lift its interim divided to 2.45 pence per share from 2.25p, reflecting the board's confidence in the current financial position of the company and future prospects.
For the six months ended September 30, the company recorded adjusted pretax profit of GBP12.4 million, up 7% from GBP11.6 million in the year ago period. Statutory pretax profit fell to GBP7.3 million from GBP7.8 million, mainly due to acquisition costs.
Revenue for the interim period grew by 8% to GBP50.9 million from GBP47.0 million, with core Cloud Services segment recording 10% growth in revenue to GBP44.3 million.
The rise in Cloud Services revenue was partly due to contribution from the acquisitions of Sonassi, Simple Servers and Dediserve during the previous financial year, along with contribution from the short period of ownership from the acquisition of Bytemark during August.
"The high levels of visibility within our recurring revenue business model and strong cost control provides stability to our trading performance for the second half of the year, ensuring the full year should deliver a similar overall year on year progression as we have reported in the first half. We remain very confident in the group's long term prospects," said Chief Executive Angus MacSween.
Shares in the company were trading 1.6% lower at 344.50 pence each.
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