SCOTTISH cloud computing specialist Iomart expects to make pre-tax profits of £17 million in the year to March, down from £19.6m in the prior 12 months.
The Glasgow group also expects to report revenue of £103m, against £111.9m the year before, and deliver full-year financial results in line with market expectations.
Iomart shares closed up 10.7 per cent at 182p.
Cash generation “continues to be strong”, with the year-end net debt expected to be £43m, narrowed from £54.6m, which it said is reducing ahead of expectations.
The Iomart board is said to be “pleased that renewal levels have improved in the second half, meaning that recurring revenue, which is 93% of full-year group revenue, was more stable in the second half”.
“The inflationary pressures being experienced across the UK business market are being monitored and addressed,” the firm said.
The firm noted good progress in its growth strategy, and the year saw the launch of several new service offerings, the creation of a strategic cyber-security partnership, and continued investments across sales and marketing.
Reece Donovan, Iomart chief executive, said: "I am pleased by the progress we have made during the year and reporting financial results in line with market expectations.
“We have launched a number of new solutions to the market, recently entered into an exciting alliance to accelerate our managed cyber security offering, reshaped the commercial team and invested in our customer service tools and resources.
“It is these steps, along with the on-going execution of our strategic plan, which gives us confidence that we will continue to be successful within the wider growing cloud sector."
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