iomart: Trading Update
iomart Group plc (AIM:IOM), the cloud computing company, is pleased to provide its pre-close trading statement for the six months ended 30 September 2019, ahead of the announcement of its half yearly results.
Group trading performance
Overall revenue growth is in line with management expectations, with good visibility heading into the second half of the year. The previously flagged investment in and reorganisation of our commercial operations is now starting to deliver more new customer wins and a stronger pipeline of opportunities. In particular, we have seen an increased level of larger, more complex enterprise contract wins in the first half, whose revenue will start to be recognised in the second half of the year. Our on-premise IT brand, Cristie Data, has also delivered a strong performance in the half year, bringing new corporate customers into the Group, with the potential to transition to higher margin managed cloud services revenue in the future.
The investments we have made in strengthening our sales engine, along with the broader mix of revenue in the first half of the year, means that margin performance will be skewed towards the second half of the year, as new orders start to contribute to revenue.
Many industries and sectors are only now at the start of the journey to the cloud, which means that the market opportunity remains large and long-term. Despite any short-term delays to decision making due to the current macro-economic and political uncertainty, our increased investment in the business means we are well positioned to take advantage of the opportunity and the Board is confident in the outlook for the full year and beyond.
Angus MacSween, CEO of iomart Group plc, commented:
“It is pleasing to see the increased investments we have made in sales and marketing begin to deliver positive results. New customer wins in our core cloud services offering are growing, supported by growth from the on-premise business which highlights there is still a long way to go on the cloud journey. We are confident we are on track to take advantage of the positive market opportunity and look forward to another successful year of growth.”
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