Iomart hails ‘exciting’ growth as earnings climb

Chief executive Angus MacSween said Iomart was 'well positioned for future growth'. Picture: Peter Devlin
Chief executive Angus MacSween said Iomart was 'well positioned for future growth'. Picture: Peter Devlin
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Cloud computing and web hosting specialist Iomart is on track to deliver a 19 per cent jump in annual profits.

In a trading update, the Glasgow-based firm said adjusted pre-tax profits for its financial year ending today are expected to climb to about £22.4 million, up from £18.9m a year earlier, with revenues set to grow 17 per cent.

• READ MORE: Profits surge at Glasgow cloud computing group Iomart

It also flagged higher dividend payments to shareholders, with plans for a maximum payout ratio of 40 per cent of adjusted diluted earnings per share – up from the previous limit of 25 per cent – thanks to its high levels of operating cash and “very low” debt.

Aim-quoted Iomart, led by chief executive and co-founder Angus MacSween, added that it was confident of continued growth on the back of its “excellent” results, which will be delivered to the market on 13 June.

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MacSween said: “Iomart has delivered yet another year of exciting growth. The long-term opportunity remains very real and Iomart continues to broaden its cloud skills, experience and breadth of management to ensure it is well positioned for future growth.”

He added: “Our strong balance sheet and our increasing cashflow leaves us in good financial health.”

Analysts at house broker Peel Hunt said: “The revenue growth for the year adds to a formidable record where 13 of the last 15 financial years saw strong double-digit headline growth.”

Iomart also announced today that chief operations officer Sarah Haran has stepped down from its board with immediate effect “to pursue other interests” after 18 years with the group.

“I would like to add my personal thanks to Sarah Haran who has made a significant contribution to the success of Iomart for many years,” MacSween said.

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