IOMART PROFITS FROM ITS MANAGED HOSTING FOCUS
Company announces £12.5M profit and is set for acquisitions
Managed hosting and data centre services provider iomart group plc has announced a 58 per cent rise in revenues following its decision 18 months ago to focus on its managed hosting business.
In July of this year the company sold its online business directory service Ufindus to BT for £20m, which helped deliver a profit for the period of £12.5m.
The AIM-listed firm, based in Glasgow, reported revenues of £5.7 million in the six months to September 2008, rising from last year’s interim revenues of £3.6m, and predicted it will reintroduce investor dividends at the end of its financial year.
iomart’s managed hosting operation has seen a 50 per cent hike in customer levels in the period, and a four-fold increase in revenues, plus an additional 6,000 customers signing up to its SME hosting provider Easyspace, which grew revenues by 18 per cent.
With £14M cash in the bank, iomart is in a strong position to continue its progress in the managed hosting market.
Angus MacSween, chief executive of iomart, said: “The progress we have made in the 18 months is strong evidence that we are pursuing the correct strategy for iomart, and we are especially pleased with what has been achieved in the first half of this year.
“The business is leaner, more productive and more efficient than ever, and we have sufficient cash reserves not only to weather the tough economic conditions, but to further improve our offering to the market, whilst actively seeking complementary acquisition opportunities.”
“If trading continues to go according to plan, we’d expect to be able to reintroduce a dividend policy by the end of the financial year.”
Earlier this year iomart opened two new purpose-built data centres in Nottingham and Leicester, taking its operational total in the UK to four. The company also operates data centres in Glasgow’s media hub, near the BBC and STV HQs, and in London, in the heart of the City.
Advances in iomart’s offering of new virtualisation technology, which allows clients to ‘get more with less’ by improving their operational IT efficiency using less physical server hardware, has been key to progress as customers seek out cost effective solutions to growing IT demands. An increasing trend for outsourcing complex hosting requirements has also presented significant opportunities.
iomart’s web safety and security subsidiary Netintelligence has also been moved into the business’s hosting division to allow delivery of a more comprehensive and fully-integrated service.
Angus MacSween said: “We’re aware that all companies are examining their cost base very carefully, but there are real cost savings to be made in outsourcing to a quality provider.”
“Companies want their hosting partners to offer peace of mind. They seek companies that have proven experience and can guarantee that their business is totally protected and in safe hands. As a financially sound company with its own infrastructure and network we are well placed to take advantage of this. We will focus on the delivery of dedicated and virtual servers, back up, email, security products and disaster recovery as well as bespoke complex hosting.”
”We are operating in a growing market, and we are very positive about another period of healthy growth for the business.”
Issued by The BIG Partnership on behalf of iomart plc. For more information contact:
Bryan Garvie The BIG Partnership 0141 333 9585
firstname.lastname@example.org 07863 208045
Jane Robertson The BIG Partnership 0141 333 9585
NOTES TO EDITORS
Founded in 1998, and listed on AIM in 2000, iomart plc has built an enviable reputation for its core internet hosting skills and experience. The company holds a unique place in the hosting market in that it genuinely offers a ‘one source’ approach. By physically owning and managing its own network infrastructure, including state-of-the-art data centre facilities, it offers world-beating levels of service to its customers. iomart provides a blend of hosting services, ranging from domain name management through to complex managed data centre solutions, to both the private and public sector.
All hosting services are customised to suit the client’s exact requirements and are designed for superior performance, reliability, security, and scalability.
iomart owns and operates purpose-built data centres in the City of London, Glasgow, Nottingham, and Leicester.Subscribe to RSS Feed