Iomart has reported revenue growth of 10%, rising from £115.6m to a record £127m year-on-year.
The Glasgow-headquartered cloud computing company's final results for the year ended 31 March explained that this was supported by two acquisitions and organic growth within managed services.
Cloud managed services revenue, the largest component of the group, increased by 17% from £64.1m to £75.2m, driven by around 3% organic growth and approximately £8.9m revenue contribution from the latest three acquisitions.
Group adjusted earnings margin performance of 29.7% was down from 31.3% year-on-year, reflecting the change in revenue mix and specific timing of inflationary price adjustments during the period.
Interest expenses were also up by £1.4m during the year, due to rise in bank interest rates, meaning that adjusted profit before tax rose only marginally, from £14.8m to £15m.
Year-end net debt increased by 6% from £39.8m to £42.3m.
Iomart also noted double digit order bookings growth in the year, including an increase in average order values and a higher number of new customer wins
Also revealed in the statement was the nomination of Richard Last as chair of the board, which is set to take effect from 12 June.
Chief executive Lucy Dimes commented: “I am delighted to report on a year of revenue growth supported by two acquisitions and organic growth within cloud managed services, the area which is the key focus of our commercial and product strategy.
“We delivered good profitability and continued strong cash generation, providing us with the strong financial foundation on which to execute our growth strategy.
“Our vision is to be the UK's leading secure cloud services provider to the SME market,“ she explained. “We want to provide a compelling proposition to customers as cloud optimisation experts and a managed service provider that delivers the right cloud for the right workloads, which is secure by design.
“In a world where computing demands are getting ever more intense, and businesses across all sectors and size are looking at how they can harness the very latest technologies, iomart sits in an enviable position,“ continued Dimes.
“We have a valuable data centre estate and capability connected by a fibre backbone, providing security, resilience and control, underpinned by a talented team of world class technical experts and engineers, combined with proven expertise across a range of customer segments.
“This and the financial firepower to rapidly expand our offering and scale through selective M&A gives us the confidence to drive for accelerated growth and achieve our vision.”
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