(Alliance News) - Iomart Group PLC on Tuesday hiked its annual payout following strong growth in both revenue and profit.
The cloud computing company reported pretax profit of GBP16.2 million for the year to the end of March, up 8.7% from a year earlier, as revenue grew 6.0% to GBP103.7 million.
On a divisional basis, revenue in the Cloud Services segment grew by 8% to GBP90.6 million, driven by the contribution from acquisitions.
In the Easyspace unit, there was a small reduction in revenue in the year to GBP13.1 million from GBP13.7 million. The company explained that to grow Easyspace significantly it would need a high marketing budget.
Iomart proposed a final dividend of 5.0 pence a share, resulting in total dividend for the year of 7.46p, up from 7.18p paid the year before.
Looking ahead, the company said in the first two months of the year it has performed in line with its own expectations. Iomart intends to focus on the growing prospects pipeline following the investment made in its skills, processes and systems.
"The demand for the products and services we provide continues to grow," said Chief Executive Angus MacSween. "We enter the new year with confidence, underpinned by a significantly larger pipeline of prospects than this time last year."
"We continue to invest in our cloud product offering, skills and organisational platform to ensure we are positioned to capitalise on this opportunity, and the Board is confident that strong growth will continue for many years into the future," added MacSween.
Shares were down 0.6% on Tuesday morning at 348p.
Iomart (IOM)