Iomart posts 37% rise in annual profits

Virtualisation

by CBR Staff Writer| 29 May 2014

Two major acquisitions push data centre company’s revenues.

UK data centre firm Iomart delivered a 37% pre-tax profit rise and 29% growth in its revenues for the financial year ended 31 March.

The pre-tax profit increased to £14.6m (2013: £10.7m), while the revenues to £55.6m (2013: £43.1m).

The company's hosting segment showed the highest growth of 40% to £44.7m.

Iomart attributed the earnings to organic and acquisitive growth.

Acquisitive growth was witnessed with the purchases of Backup Technology and Redstation that expanded the company's expertise in data protection, cloud backup and dedicated hosting to eight locations in the UK.

Backup Technology was acquired for £23m and Redstation for £8m.

During the year, the company has completed multi-million datacenter facility in Maidenhead for SME and enterprise level customers.

Iomart CEO Angus MacSween said that the current practice of back-office workload being handled on premise is expected to change with it being moved to cloud.

"We believe this will change and we can already see the early adopters starting to move to the cloud. This reinforces the 'dripping roast' nature of the market opportunity and as I have been saying for the last five years, it has a long, long way to go."

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