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iomart cuts losses as it refocuses

22nd May 2002 · Press Releases

iomart today announced a narrowing of its half-yearly losses due to a concentration on its ongoing business.

The company said that results for the period January 1, 2001 to March 31, 2002 showed total sales of £5.4 million and total pre-tax loses of £7.9m.

Cash balances at the end of the period stood at £6.5m with a loss per share of 14.7 pence.

Chairman Nick Kuensberg said that the improved performance was a consequence of the company’s "proactive" programme to concentrate on NetIntelligence, a network monitoring tool, and web-hosting.

He added: "With our new concentration on two markets, a reduced cost base and cash balances of £6.5m at the period end, we are better placed to provide long-term capital growth for our shareholders."

Chief executive Angus MacSween said that, after selling two of its businesses – Madasafish and broadband – in the last year, the company had significantly reduced its cost base. UK staff numbers had been cut from 156 to 52 in the last 12 months.

The sale of the ADSL business to Centrica brought in £2m cash and concluded the company’s withdrawal from the telecoms marketplace, following the sale of the consumer ISP Madasafish in May 2001 for £3million cash.

There had also been three acquisitions – the Actis Technology’s NetIntelligence, OnCue and Canbox, a decision to close one of its subsidiaries and a relaunch of web-hosting and related activity under iomart Internet.

Mr MacSween said: "We have repositioned the company in the enterprise security market with our Netintelligence product set.

"Our challenge now is to capture a meaningful slice of our chosen market and the management team is focused on doing that."

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