(Alliance News) - Iomart Group PLC on Tuesday lowered its full-year dividend, despite seeing a "record level" of revenue in financial 2023.
The Glasgow-based cloud computing company reported that revenue in the financial year ended March 31 rose by 12% to GBP115.6 million from GBP103.0 million. It noted that this is a "record level" for Imort.
It explained that the rise in revenue reflects a combination of improved customer renewal levels, organic revenue growth within core cloud-managed services, and inflationary pricing adjustments, together with the acquisition of Concepta Capital Ltd in April.
Concepta is a holding company for firms including the ORIIUM and Pavilion IT brands. ORIIUM is a channel-only IT services provider while Pavilion IT is a provider of cloud and hybrid infrastructure services.
Iomart said that Concepta provided GBP6.2 million of revenue and is "performing well."
However, pretax profit fell by 30% to GBP8.5 million from GBP12.2 million. This "reflects revenue mix, together with investment in upskilling employees' capabilities, appropriate wage increases and cost of living support".
Iomart proposed a final dividend of 3.5 pence per share, down from 3.6p. This bought the full-year dividend to 5.44p, down from 6.02p.
The company said the first two months of the new financial year are in line with internal expectations, reporting revenue ahead of the equivalent prior period.
Shares in Iomart were up 0.4% to 165.70p each in London on Tuesday morning.
By Sophie Rose, Alliance News reporter
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Iomart (IOM)