iomart Group plc (AIM:IOM), the managed hosting and cloud computing services company, has  today (June 1 2011) announced a very healthy 618% rise in profit before tax to the London Stock Exchange.




iomart Group logo

The company’s financial results for the year ended 31 March 2011 showed profit before tax rose to £2.8m (2010:£0.4m, before gain reduction in deferred consideration of £09m). iomart Group’s revenue also showed a big increase, up 38% to £25.3m from £18.3m in the previous financial year.

The majority of growth announced by the Glasgow-headquartered company came from its hosting operations which generated revenue of £17.7m, a rise of 61% from £11.0m in 2010. This figure includes revenues from the acquisition in November 2010 of Titan Internet for £4.2m, however even taking into account this purchase, hosting revenue still jumped by 47% with many customers looking specifically for cloud-based and enterprise hosting solutions.

Angus MacSween, CEO of iomart Group plc, said: “Cloud computing has become something of a buzz word with many companies adding the ‘cloud’ tag to everything they do without backing it up with reliable delivery mechanisms. At iomart we have built our technologies from the ground up specifically to be delivered via the cloud. As a result we are becoming recognised as an authority on the provision of cloud-hosting solutions and are well positioned to take advantage as the market evolves and people look for reliable vendors.” iomart Hosting won 400 new orders during the year, many of which were additional orders from existing customers. Increasingly these orders include some aspect of cloud or virtual computing in the overall solution.

Angus MacSween continued: “With more and more businesses looking to the cloud for their data solutions we believe we have positioned ourselves well to take advantage of this market moving forward. We are in a market that is growing and that is here to stay and we fully expect to participate strongly in that growth.”

The adjusted EBIDTA* for iomart Group plc was £6.6m, a high level of growth, showing an improvement of 113% (2010:£3.1m). Again the adjusted EBIDTA for the hosting side of the business also showed an increase of 124% to £6.2m from £2.8m in 2010.

iomart Group plc owns five data centres around the UK and has continued to invest in its data centre infrastructure by fitting a further 7,000square feet of space in its Maidenhead data centre during the year.

Note: * In this release adjusted EBITDA for March 2011 is earnings before interest, tax, depreciation and amortisation (EBIDTA) before share based payment charges and acquisition related costs and for March 2010 is EBIDTA before share based payment charges and net gain on reduction of deferred consideration.