iomart Group Profits From Rapid Growth in Cloud ComputingBy Iomart Group Press Office, PRNE
Sunday, November 28, 2010
Half Year Results Reveal Increase in Revenues and Profits as Hosting Market Shifts to the Cloud
LONDON, November 29, 2010 - A 36% rise in revenues has helped cloud computing and managed hosting
services company iomart Group plc (AIM:IOM) report a 105% increase in profit
after tax of GBP1.0m (H1 2010: GBP0.5m squared) in its half yearly results to
September 30 2010.
Angus MacSween, CEO, iomart Group stated: "In the first half of the
financial year we continued to successfully grow both the size and quality of
our customer base. iomart is one of the very few, trusted UK providers of
complex hosting services and this has led to exceptionally low churn and high
recurring revenues from existing and new customers."
"We're very pleased with the progress we've achieved during the first
half of the year, with all of our hosting brands performing well over the
period. All brands have continued to innovate in their respective markets and
have focused on improving quality of service and customer retention, in line
with the Group's strategy of becoming the UK's foremost managed hosting
Having reached an inflexion point last year, the Group continues to trade
"We've seen a significant increase in our EBITDA profitability in our
existing operations, and we expect this to be further accelerated by our
acquisition of Titan Internet post period."
iomart Group acquired Essex based managed hosting company Titan Internet
Limited for GBP4.2 million at the end of October. The Group expects the
acquisition to be immediately earnings enhancing before the one off costs of
The Group also revealed that its corporate hosting arm, iomart Hosting,
has organically increased its customer base by 50% and that much of this
growth is attributable to cloud services.
Angus MacSween stated: "Cloud computing is definitely proving to be a
game changer in the way that organisations are viewing their IT service
delivery. We are witnessing a paradigm shift away from traditional on premise
models to the cloud, but for many organisations the move to the cloud will
prove challenging and a whole host of technical and business process issues
will need to be addressed for a successful migration."
"Increasingly organisations will turn to suppliers that have the proven
technical skills, infrastructure and tools to help them develop the processes
that will keep them in control of their IT, thus fully delivering the maximum
benefits that the cloud undoubtedly offers."
"Our strategy is simple. We have a highly experienced and innovative
technology team and we are currently using all the flavours of virtualisation
technologies to develop 'private and hybrid clouds' for mission critical
applications which we provide under our 100 percent uptime guarantee. Using
our multiple data centres we can provide an enviable level of resilience and
backup/disaster recovery options, all of which gives us a tremendous head
start in this embryonic marketplace."
"In addition to our organic revenue growth, we're especially delighted at
the levels of additional business that we are gaining from our brands'
existing customer base. Our range of high quality services combined with
investment in technological innovation means we believe we are very well
positioned to continue to deliver strong growth."
NOTES TO EDITORS
iomart Group plc
("iomart" or the "Group")
Half Yearly Results
iomart Group plc (AIM:IOM), the cloud computing and managed hosting
services company, is pleased to report its half yearly results for the period
ended 30 September 2010.
FINANCIAL HIGHLIGHTS - Revenue up 36% to GBP11.4m (H1 2010: GBP8.4m) - EBITDA up 222% to GBP2.7m (H1 2010: GBP0.8m) - PAT up 105% to GBP1.0m (H1 2010: GBP0.5m squared) - Net cash at end of period of GBP5.3m (H1 2010: GBP4.5m) OPERATIONAL HIGHLIGHTS - Acquisition of Titan Internet Limited for GBP4.2m in October 2010 - iomart Hosting customer base increased by over 50% with substantial increase in cloud solutions - RapidSwitch adds virtualised dedicated server to product range - Easyspace sees improvement in customer retention and increase in average revenue per user - Netintelligence receives prestigious award for successful delivery of Universal Home Access project
EBITDA means earnings before interest, tax, depreciation, amortisation,
acquisition costs and share based payments squared before exceptional gain of
GBP1m and related costs of GBP135k on reduction of deferred consideration on
About iomart Group plc
iomart Group is one of the UK's leading providers of managed hosting and
cloud computing services. From a single server through to private cloud
networks, iomart specialises in the delivery and management of
mission-critical hosting services, enabling customers to reduce the costs,
complexity and risks associated with maintaining their own web and online
By physically owning and managing its own network infrastructure,
including five state-of-the-art data centres in the UK, iomart offers
world-beating levels of service to its customers. The Group offers a unique
100% uptime guarantee with all hosting services being engineered to ensure no
single point of failure.
The Group operates in the hosting market through its iomart Hosting,
Easyspace, Netintelligence, Titan Internet and RapidSwitch brands.
For further information about the Group, please visit
iomart Group Press Office, Lister Pavilion, Kelvin Campus, Glasgow,
G20 0SP, Tel: +44(0)141-931-6400, Fax: +44(0)141-931-6401, Email:
iomart Group Press Office, Lister Pavilion, Kelvin Campus, Glasgow, G20 0SP, Tel: +44(0)141-931-6400, Fax: +44(0)141-931-6401, Email: marketing at iomart.com
Tags: Iomart Group Press Office, London, November 29, United Kingdom