Web Host Iomart reports earnings
UK-based managed hosting provider iomart announced on Wednesday its interim results for the six month period ended on September 30.
The company posted a pre-tax loss of £435,000 compared with a pre-tax profit of £30,000 in 2006. Revenue fell to £9.6 million versus £10.9 million a year earlier. The results show that the group swung to a first-half pre-tax loss due to the initial development of the data center business but that trading since the end of the period has been in line with expectations.
The company says it is seeing considerable and growing interest in both its data center services and complex hosting capabilities, particularly from its target market of blue-chip enterprises seeking long term solutions, and believes these will form the core of the company's future revenue streams, providing high margin earnings with good visibility.
"This increasing market demand, coupled with iomart's ability to offer the complete set of components in the hosting arena from dedicated servers through to complex managed hosting solutions and co-location space, means that the group is well positioned to win high-value contracts with large organizations requiring significant amounts of rack space," says Angus MacSween, CEO of iomart.
"Contracts of this kind, usually long-term, attract a premium price while offering numerous up-selling opportunities."
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