Web host
iomart has announced an increase in profit over the six months up to the end of September 2014 - the first half of the financial year in the United Kingdom. Established in 1998, the company, which is part of the iomart Group and located in Glasgow, Scotland, saw profits increase to £5.5 million ($8.62 million) during the period. This represents a rise of 26%. The company's revenue also grew by 28% during the period. Despite the news iomart shares fell 20% in Tuesday's early trading.
"Operational highlights" during the period included developing the company's cloud offerings through relationships with “strategic Tier 1 providers” including Dell, EMC and Microsoft. The company also established cloud infrastructure and backup services in the United States. It also bought managed hosting company ServerSpace for £4.25 million ($6.66 million), a purchase which was completed last week at an initial price of £2.6 million ($4.07 million) with the balance paid until September 2015 (dependent on ServerSpace's performance).
The company's cloud hosting activity saw revenue increases of 37% to £26.1 million ($40.88 million) in the period while, Easyspace, iomart's domain name arm, suggested that the market for new top-level domains (TLD) had been sluggish and activity had primarily been driven by defensive action on behalf of .com owners and owners of more traditional domain names who bought up domains with new suffixes to protect their existing domains and websites.
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