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News

Cloud computing company sees 47% revenue increase

Iomart Hosting : 25 November, 2009  (Company News)
Increased demand for managed hosting and cloud computing services takes iomart Group into profit with a 47% YoY increase in revenues
A 47% increase in revenues has helped managed hosting and Cloud Computing business iomart Group report a profit of £1.4M (£0.65M loss Sept 2008) in its half yearly results to September 30 2009.

The Group also revealed that it's managed hosting arm, iomart hosting, has doubled its customer based and moved into profitability, following a period of investment. Overall, the results show the Group is delivering on its strategy of growing its managed hosting business as it bids to become recognised as the UK's foremost managed hosting company.

In May, iomart Group acquired dedicated server hosting company RapidSwitch for £5.25m. RapidSwitch has quickly integrated into the Group and is performing well by continuing to grow revenues and profit.

The Group's Maidenhead data centre has also been fitted out to provide another 3500 square feet of hosting space to allow for further expansion; in addition, the data centre now houses RapidSwitch's entire hosting infrastructure, eliminating external rental costs and delivering substantial savings for the Group.

The Group launched two Cloud Computing products under its iomart Hosting brand; CloudXtra, designed for short-term, fluctuating computing demand and CloudSure, which provides a resilient high availability platform for business critical applications.

Angus MacSween, CEO of iomart Group plc, said: "We're very pleased with the progress we've achieved and all of our hosting brands have performed well over the period. We achieved a major milestone during the period moving into recurring monthly EBITDA profitability in our existing operations, further accelerated by the acquisition of RapidSwitch.

"We have continued to win new business since the end of the period and have good visibility of revenues for the second half of the year. In addition to the revenue growth that we have experienced from new customers, we're especially delighted at the levels of additional business we are gaining from our existing customer base, as they turn to us, as trusted supplier, to provide the additional services that they need for their own expansion. Our current trading is well in line with expectations and we remain confident for the full year."

"The enhancement of our Cloud Computing offerings during the period underlines our intentions to innovate in the provision of UK hosting services' and we believe we are well placed to take advantage of the market opportunity in this area."

During the period the Group also renegotiated a deferred payment for its 2007 acquisition of data centres from Ezee DSL, from £4.8m to £3.8m.

Financial Highlights

• EBITDA profit of £0.84m (H1 2009 loss of £0.36m
• Revenue growth of 47% to £8.4m (H1 2009 £5.7m)
• Net cash at end of period of £4.5m (H1 2009 £13.7m)
• Acquisition of RapidSwitch for £5.25m

Operational Highlights

• RapidSwitch integrated into Group and operations completely migrated into own datacentre in Maidenhead
• iomart Hosting customer base has more than doubled in size from September 2008
• Continuing development of cloud capability with new services launched

Angus MacSween, CEO commented, "We achieved a major milestone during the period moving into recurring monthly EBITDA profitability in our existing operations, accelerated by the acquisition of RapidSwitch. We have continued to win new business since the end of the period and have good visibility of revenues for the second half of the year. Our current trading is well in line with expectations and we remain confident for the full year."
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