Iomart Group reported its expected revenue for the year ended on 31 March 2023 to be £115 million – a marginal improvement from its previous year (£103m). This comes on the backdrop of a £7m increase in energy costs as well as the Group’s interest expense being pushed up by approximately £0.9m year on year. 

According to Iomart, rising energy costs is an issue the data centre sector as a whole has had to navigate in the past year. The company ensures that its increased costs have been passed through to the customer base. Energy prices have risen by over 66% in the past year according to the UK government. 

Iomart also revealed its adjusted earnings of £36.2m down from £38m the previous year and adjusted profit before tax of £14.6m down from £17.1m the previous year. This year’s amount reflects both the revenue mixed with investments in upskilling employees and wage increases and cost of living support. 

The Group’s performance is thanks to the successful  completion of the acquisition of Concepta Capital Limited in August of last year. As well as stability in its customer renewal rate, providing a solid base of recurring revenues according to the report. Iomart reported its non-recurring revenue to be £9.2m – up from £7.1m last year – which pegs recurring revenue at 92% of their total revenue.

Recommended

• Can a Scottish Crypto Help the Third Sector?
• Gartner: Worldwide IT Spending to Grow 5.5% in 2023
• Tech Unrest: 3 in 4 UK Tech Workers Dissatisfied at Work

“I am pleased with the progress achieved this year in our transition to a secure hybrid cloud offering.  We saw our pipeline improve in the first half and this converted to stronger order booking levels as we completed the year. The team has worked hard to ensure momentum in the execution of our strategic plan and continuous improvement within the business. This gives us confidence that we will continue to be successful within the wider growing cloud sector.” said Reece Donovan, CEO of Iomart Group.