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iomart records 121% rise in turnover and delivers maiden profit
Added: (Wed Nov 17 2004)
iomart records 121% rise in turnover and delivers maiden profit
Interim Results show strong growth for first 6 months
iomart Group plc (“iomart”), the Glasgow based security software and web-services business, has today presented its consolidated interim results for the six month period ended 30 September 2004.
Financial highlights
• total turnover at £6.4m, up 121% on previous year with annualised revenues at c. £18m
• maiden profit for the period of £167k and fully diluted earnings per share of 0.24p (adjusted EPS 0.50p)
• minority interest in iomart Internet Limited acquired at a cost of £2.2m
• net cash inflow from operating activities and cash of £2.1m on hand
Operational highlights
• £12m acquisition of Easyspace Limited completed
• web services business now has 190,000 customers
• three acquisitions including Easyspace trading profitably
• NetIntelligence version 4 launched November as end-point security ASP service
Prospects
• NetIntelligence positioning extended to family and SME market
• web services business profitability well established
• significant customer base provides platform for cross selling and continuing growth
Nick Kuenssberg, chairman, commented, “The work invested in the three web service acquisitions and the buy-in of the iomart Internet minority are proving fruitful and will provide a solid platform for future development. We anticipate strong organic growth and further acquisition opportunities in the sector”
Angus MacSween, CEO, commented, “The first half of the year has been rewarding with the successful acquisition of Easyspace and continuing organic sales growth in our web services business. We are adding more than 1,700 net new customers per month and now have 190,000 customers including around 140,000 from the Easyspace acquisition.
He added, “NetIntelligence continues to evolve as an effective solution in the network security space where our product functionality is increasingly relevant. We are gaining sales in the SME market and we have recently launched a home product centred on complete security for the family. This is a web based product ideal for broadband users and we are exploring a number of opportunities with a variety of ISPs and Telcos. Our MailFilter product is gaining sales in all market sectors and we intend to put more sales resource into that area to capitalise on the current demand. Our contract with BT is progressing satisfactorily.”
Finally, looking ahead to the next 6 months, MacSween added: We are confident that we can continue to build on our organic growth, that we can integrate and grow our recent acquisition, and that we can make a significant impact with NetIntelligence. We look forward to building on our success into the second half of the year and beyond”
-ENDS-
For further information, please contact:
Nick Kuenssberg
Chairman
+44 (0) 7860 635191
Angus MacSween
CEO
+44 (0) 141 931 7025
Press Office
+44 (0) 0141 931 7006
Web Sites:
www.iomart.com
www.netintelligence.com
Notes:
1. iomart, founded in 1998, is an AIM listed public company (London: IOM). iomart serves two distinct markets: Enterprise Security through its NetIntelligence Software & web services through it’s subsidiary, iomart internet Ltd.
2. Easyspace was acquired for £10.5M net on the 6th September 2004
3. iomart acquired the outstanding 25% minority interest in its web services subsidiary, iomart Internet Limited ("iomart Internet") for a total consideration, of £102,000 in cash and 3,200,000 new ordinary share of 1p each on 19th May 2004. Following the acquisition, iomart now owns the entire issued share capital of iomart Internet.
4. iomart signed a reseller agreement with British Telecommunications PLC ("BT PLC") for the provision of the email filter element of its NetIntelligence solution on 23rd August 2004. iomart sells this product to BT on a monthly subscription wholesale basis.