(Alliance News) - Iomart Group PLC on Thursday said it will meet its annual earnings targets, which includes a double-digit boost in revenue, thanks to a recent acquisition.
For the year ended March 31, the Glasgow-based cloud computing company expects to report revenue growth of 10% to GBP127.0 million from GBP115.6 million the year before and adjusted earnings before interest, tax, depreciation and amortisation growth of around 3.6% to approximately GBP37.5 million from GBP36.2 million, both in line with expectations.
As for adjusted pretax profit, the firm expects to report a slight increase to GBP15.0 million from GBP14.8 million the year prior, also in line with Iomart's expectations.
This reflects the increased interest expense in the year of approximately GBP4.3 million from GBP2.9 million, the firm explained.
Iomart also said that recurring revenue remains high at around 91% of group revenue, compared to 92% a year ago.
The firm attributed annual growth to an increase in order bookings within its managed services business. In addition, Iomart said its acquisition of Extrinsica Global Holdings Ltd, which it completed in June 2023, contributed to revenue growth.
Chief Executive Officer Lucy Dimes said: "I am pleased with the progress achieved in the year, with the increasing strength of our offering reflected in good order growth. Our resilient financial results, extensive customer base and deep technical expertise continue to provide a solid platform for enhanced revenue growth over the medium term, from extended product solutions, focused sales and marketing activity and complementary M&A.
"Our three most recent acquisitions have all added recurring revenue growth in the post-acquisition period, and we see continued M&A activity as an important part of strengthening our overall capability and market growth plans. We continue to be active in the identification of targets which add skills, experience and capability to enhance our proposition, as we drive the business to be the UK's leading secure cloud services provider."
Shares in Iomart were down 2.9% at 136.50 pence each in London on Thursday morning.
By Sabrina Penty, Alliance News reporter
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Iomart (IOM)