Iomart says market for cloud computing 'large and long-term’

Glasgow-based Iomart is run by its long-serving chief executive Angus MacSween. Picture: Iomart
Glasgow-based Iomart is run by its long-serving chief executive Angus MacSween. Picture: Iomart
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Cloud computing and web hosting company Iomart said the market opportunity for the business “remains large and long-term” as the Glasgow-based group updated investors on recent trading.

Releasing a trading statement for the six months to the end of September, the firm noted that overall revenue growth was in line with expectations, with “good visibility” heading into the second half of the year.

Iomart, which in June reported that annual revenues had surpassed £100 million for the first time, said that a reorganisation of its commercial operations was now starting to deliver more new customer wins and a “stronger pipeline of opportunities”.

It said a strengthening of its sales operation along with a broader mix of revenue in the first half meant that margin performance would be skewed towards the second half, as new orders start to contribute to revenue.

Looking ahead, Iomart noted: “Many industries and sectors are only now at the start of the journey to the cloud, which means that the market opportunity remains large and long-term.

“Despite any short-term delays to decision making due to the current macro-economic and political uncertainty, our increased investment means we are well positioned to take advantage of the opportunity and the board is confident in the outlook for the full year and beyond.”

Chief executive Angus MacSween said: “It is pleasing to see the increased investments we have made in sales and marketing begin to deliver positive results.”

In a note, Shore Capital analyst Martin O’Sullivan said: “We retain a ‘hold’ stance for the present as we await greater clarity on the first half performance and the outlook for the second half.”

READ MORE: Revenues pass £100m milestone