Iomart reports "strong" finish to the year, management exudes confidence

1st Apr 2019 10:48

(Sharecast News) - Iomart Group on Monday reported higher annual profits and revenue as the benefits of its investment in sales and marketing kicked-in during the second half of its financial year.The cloud computing company achieved a profit before tax of £25.3m for the year ended 31 March, up from £24.0m for the year before, as revenue jumped 6% to £104.0m.That followed an increase in new lead generation from both new and existing customers that resulted in a "strong finish to the year with a significantly larger pipeline of prospects than this time last year and we enter the new financial year with confidence."A statement from iomart said: "The journey to cloud adoption remains a long term trend and, as a result, our market opportunity is large and widening. We continue to invest in our cloud product offering, skills and organisational platform to ensure we are positioned to capitalise on this opportunity, and the board is confident that strong growth will continue in the future."The AIM traded company completed the acquisition of datacentre and connectivity services provider LDeX Group in December for an initial consideration of £7.5m, with a further maximum contingent consideration of £3.5m, purchasing the freehold of its Maidenhead site for £5.4m during the same month, in a move that the company said brought long-term certainty to its datacentre infrastructure.Angus MacSween, chief executive of iomart, said: "iomart has delivered yet another year of growth with strong profitability and cash flow underpinned by our recurring revenue business model, diverse customer base and attractive market position. The group's large and building sales pipeline, combined with high levels of visibility and a significant market opportunity, leaves the board very confident in the outlook for the new financial year, as well as the long term prospects for the group."iomart Group's shares were down 0.30% at 347.95p at 1020 BST.