Iomart’s profits increase fails to impress market

 
Joseph Millis
Cloud computing company Iomart Group yesterday posted a rise in first-half pre-tax profits as acquisitions helped to boost revenue, yet failed to impress investors as shares in the firm closed down 22 per cent.

In the half year to 30 September, Iomart posted a pre-tax profit of £5.5m, up from £4.4m a year before. Revenue rose to £31.5m from £24.6m – although this was offset by higher administrative costs and depreciation charges.

The increase in depreciation charges was related to operations it acquired in the previous period and cloud infrastructure and backup assets it acquired in the US.

“The market opportunity remains large and long term and, in a fast moving and ever evolving industry we have the skills and experience to continue to perform well,” said chief executive Angus MacSween.