UK cloud provider iomart made an adjusted pre-tax profit of £14.6 million (roughly $24.45m USD) for the year ending March 31, 2014, up 37 percent from the previous year. The results are part of an announcement made to the London Stock Exchange on Wednesday.
The profit increase was driven by overall revenue growth of 29 percent, led by iomart Group’s hosting segment, which grew by 40 percent to £44.7 million. The hosting segment made up 80 percent of the company’s total revenue for the fiscal year.
Growth in adjusted EBITDA was 43 percent for the period.
Sources of organic growth for iomart include the company’s first cloud contract with the UK government under the new G4 framework for approved government cloud services. iomart also began working on a web filtering solution for enterprises and schools after becoming the first organization to meet the Child Safety Online Kitemark from the British Standards Institute.
iomart plans to continue its growth by catering to SMB cloud adoption, and recently completed a major extension of its Maidenhead data center to help meet their needs.
“To date it has mainly been the web-facing elements of infrastructure that have been outsourced to the cloud and the back-office workload continues to be handled ‘on premise,’” Angus MacSween, Chief Executive of iomart said. “Most of this back-office infrastructure is bought in the same way as it was 15 years ago. We believe this will change and we can already see the early adopters starting to move to the cloud. This reinforces the ‘dripping roast’ nature of the market opportunity and as I have been saying for the last five years, it has a long, long way to go.”
The share price of iomart on the LSE was off close to 1.5 percent on the day’s trading, which may be a reaction to a dividend of £1.75, which lags behind the profit increase at only 25 percent more than last year.