Web hosting firm cuts its losses

Iomart is confident about the future despite losses

The internet services firm, Iomart has announced a £1.2m loss in the past year compared with £2.3m last time.

The Glasgow based hosting company runs data centres which contain powerful servers used by thousands of clients.

Iomart provides internet services for some the country's biggest businesses including Stagecoach, BT and Strathclyde police.

The company said despite the recession it was making good progress and said it could reintroduce a dividend.

The company suspended its dividend two years ago so it could concentrate its cash resources on starting its data centre operations.

Now it said it proposed a payment of 0.3p per share on 3 September.

Iomart is listed on the Alternative Investment Market.

Although it reported a loss, the company said there was 45% rise in revenues from continuing operations to £11.8m.

The firm's chief executive, Angus McSween, said he was looking forward to the coming year with increased confidence.

He said: "We have enjoyed strong organic growth during the year and we continue to establish ourselves as a first class provider of managed hosting services."

Acquisition trail

Last July, the company raised £20m from the sale of its online business directory service Ufindus to BT.

It said then it would use the money to make acquisitions.

In May it paid £5.25m for RapidSwitch, which operates a data centre in Berkshire.

With that deal it took over RapidSwitch's 4000 dedicated servers working on behalf of 1600 clients ranging from small firms to large companies.

Iomart was founded in 1998, starting out as a telecoms and internet service provider.

The company employs 150 people at various sites throughout the UK.