Web hosting and cloud computing specialist Iomart today said it was on track to grow its half-year profits amid “strong demand” for its services.
The Glasgow-based group, which recently said its long-term opportunities were “bigger than ever” as it reported an 11 per cent jump in annual earnings, told investors that it continued to perform “strongly” during the first six months of its new financial year.
In a trading update covering the six-month period ending today, it said that profits and sales were expected to be “materially ahead” of the first half of 2015, when adjusted pre-tax profits grew 8 per cent to £8.7 million, on revenues 16 per cent higher at £36.4m.
Aim-quoted Iomart said: “The group has seen strong demand for its services as enterprises continue to move their services into the cloud.”
Chief executive Angus MacSween, who co-founded the business in 1998, added: “We are pleased to report another period of strong performance from Iomart.
“The group is well placed to sustain its competitive advantage within the hybrid cloud market and to maintain our reputation as the UK’s leading cloud computing company. We continue to see a good stream of acquisition opportunities and look forward with confidence to the rest of the year.”
Following the trading statement, analysts at N+1 Singer, which has a “hold” rating on Iomart’s shares, said: “The group continues to see strong demand for its services as enterprises continue to move their services in the cloud and we believe it has positioned itself well as the experts that can help navigate the available choices and implement them.”