Cloud computing company iomart (IOM)  updated markets on trading for the six months ended 30 September, with growth in both revenue and profitability setting it up well in the expanding hybrid cloud market. 

iomart's growth strategy continues to gain momentum, with expected revenue growth of about 18% to £62.0m for the first half of 2023 compared to H1 FY22’s £52.6m. Adjusted EBITDA was also up by 4% to approximately £18.5m. 

Due to recent bank interest rate increases, profit before tax is expected to increase more, to around £7.5m, up from £7.4m in the previous period. 

Iomart said these results reflect a similar business mix outlined in the full year results to 31 March 2023, and a £6.5m approximate revenue contribution from its two latest acquisitions.  

Due to the acquisition of Extrinsica Global Limited on May 31, 2023, and the £4.0m earn-out payment associated with the Concepta Capital Limited acquisition in August 2022, net debt has increased as expected to approximately £49.0m as of September 30, up from £39.8m on March 31, 2023. 

Lucy Dimes, CEO and Chair of iomart Group plc, commented: "This has been a solid first half of the financial year, seeing growth in both revenue and profitability. Since assuming the role of CEO in the last few weeks, I have been impressed by the knowledge and skills of our team, range of service offering and diversity of our customer base. These are powerful building blocks for us to take iomart forward with confidence."
 

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The positive trading performance reflects the strength of iomart's cloud capabilities, business model, and the growth of the cloud market, aided by recent acquisitions that have improved the customer proposition. Iomart said that the board remains confident in the long-term prospects for iomart in the broader hybrid cloud market.

iomart is a UK-based company that specialises in providing cloud and managed hosting services. It offers a wide range of cloud-based solutions, helping customers to reduce the cost, complexity and risks associated with maintaining their own web and online applications.

iomart is well positioned in a rapidly growing market. The growth of the hybrid cloud market has overtaken other cloud services in the past few years, with the size of the market estimated at US$129.43 billion in 2023, and expected to reach US$348.53 billion by 2028, growing at a CAGR of 21.91% during the forecast period. 

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