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iomart reports a stagnant cloud services year

iomart reports a stagnant cloud services year

AIM-listed cloud services provider iomart has reported that annual sales dipped a shade under 1% to £111.9m for the 12 months ending 31 March, with adjusted EBITDA also slipping 4.8% to £41.4m.

The adjusted profit before tax dived 14% to £19.6m. Recurring revenue went up 5% to 90% of turnover.

Organic cloud revenue declined 6%, with on-premise project revenue also hit as customers delayed spending.

Reece Donovan was appointed as chief executive officer from 1 October 2020 at the Scotland-headquartered firm, following the retirement of founder and long-standing CEO Angus MacSween.

There has been investment in the firm's data centre infrastructure and network over the last year to improve service delivery.

CEO Donovan said: “The year of our results coincided almost to the day with the onset of the pandemic in the UK. Our focus during the year was on the protection of our people and the business and our team responded with commitment, resilience and dedication.”

He said: “We have now begun a new chapter for iomart and we have a significant market opportunity - growing our propositions in hybrid cloud, security, the digital workplace and connectivity to support our customers as they adapt to new ways of working now and in the future.”

As well as organic growth this year, Donovan said the firm was targeting further selective acquisitions to help grow the business.