Cloud Hosting Company iomart Reports 33 Percent Revenue Increase

As more U.K. organizations begin to leverage the benefits of cloud hosting, cloud computing and managed hosting services provider iomart Group said it grew its revenues by 33 percent for the 2012 fiscal year, with profits up by 68 percent.

The U.K.-based company posted $17.5 million in revenues for the period ending March 31, 2012. Company officials said revenue grew by 33 percent to $21 million, while pre-tax profits grew by 91 percent to $10.8 million.

“This is another great set of results and shows that we continue to consolidate our position within the large, highly fragmented and growing U.K. cloud hosting market,” said Angus MacSween, CEO of iomart Group. “We are investing in both storage infrastructure and in our network connectivity to maintain our leading position and offer premium levels of service to customers.”

Revenues from the hosting division grew by 38 percent to approximately $38 million, mostly due to iomart hosting which, in the last four financial years, has experienced a five-fold increase in revenues from $7.2 million in the year to March 2009.

In the past year, the hosting company snagged 600 new orders, including a significant amount of additional orders from existing customers. Company officials said recurring revenue levels are around 95 percent.

Also attributing to its record growth, iomart Group bought three hosting companies in the last financial year: Switch Media, EQSN and Global Gold.

“Since the end of the financial year, trading has been encouraging. All three acquisitions have been fully integrated and we have the financial firepower to do more,” MacSween added. “We would expect to make at least another two or three acquisitions in the next 12 months.”

ioMart was originally founded in 1998 as an integrated internet and telecommunications company, the Group has evolved to become one of Europe’s largest providers of managed hosting, colocation, data center and business continuity services, serving over 300,000 customers daily.