The company said it expected revenue and profit for the six months to September 30 to be substantially ahead of last year, when it achieved revenue of £15.4m, and also predicted full year results ahead of current market expectations.

It cited last month’s acquisitions of hosting peers Melbourne and Skymarket as “complementing the group's strong organic earnings growth”.

Iomart’s statement read: “The focus of the business continues to be on the provision of high quality and high margin managed solutions to SMEs and corporate clients. These contracts are typically for two to three years in length. Furthermore, clients are increasingly staying with iomart on contract renewal.

“The acquisitions of Melbourne and Skymarket announced last month are being integrated successfully into the business and are expected to complement the group's strong organic earnings growth. In particular, the Melbourne business extends the UK coverage of the company into the north of England.”

It added: “We believe cloud computing will continue to be critical to all companies over the next few years, as corporate budgets continue to support online strategies, and the move to a hosting environment which delivers significant cost savings and flexibility becomes more compelling.

“The market potential remains substantial as it is estimated that while there has been a strong increase in hosted services in recent years, approximately 85% of all servers are still located at a company's own premises.”

Angus MacSween, chief executive of iomart, said: "We are delighted with the continued progress of the business. The recent acquisitions are performing in line with our expectations. We are into our fifth year of double digit growth and the demand for our services remains robust as businesses increasingly see the value of outsourced cloud services."