Cloud computing company iomart reports half-yearly profits hit by pandemic – Insider.co.uk

Glasgow cloud computing company iomart reported profits before tax of 6m down 29% from 8.4m as Covid-19 impacted its business, in its half-yearly results.

Earnings were down 4% to 20.8m from 21.8m in the six months to 30 September.

Total revenues were up by 2% to 56.3m with the contribution of two smaller acquisitions made in the final month of the last financial year.

This offset the a small decline in organic revenues, the company said, reflecting the impact of Covid-19 on discretionary on-site projects together with a reduction in revenues in some legacy areas.

The company said that order levels from existing cloud services customers was consistent with the first half but that the decrease in margin reflected the greater uptake of lower-margin but strategically valuable managed cloud solutions.

It said it expected margins to benefit in the second half from cost base adjustments and the integration of recently acquired businesses ServerChoice and Memset - in deals worth up to 7.2m.

Reece Donovan, chief executive of iomart, said: Whilst we have exciting plans for the future of iomart, the focus in the first half of the year had to be the protection of our people, customers and stakeholders in the face of Covid-19.

I am pleased to report such a resilient set of results and would like to thank our team for their continued efforts and commitment. iomarts business model has stood us in good stead and despite the global slowdown in corporate activity, we continue to perform well.

The previous investments into our sales and operational teams provide us with a strong foundation to accelerate growth once companies regain the economic confidence to make infrastructure transformation decisions.

Donovan said he was confident that the transition to the cloud would continue for many years and that iomart would pay a considerable role in that, concluding: We remain confident in the long-term prospects for iomart.

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Cloud computing company iomart reports half-yearly profits hit by pandemic - Insider.co.uk

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