Iomart plans to pick up the pace with larger acquisitions

Accounts released this morning show Iomart generated record revenue of £127 million in the 12 months to the end of March, up 10% on the previous year. Its largest division, managed cloud services, grew 17% to £75m, but after deducting £9m of sales from three recent acquisitions, organic growth fell to just 3%.

Against this backdrop, Ms. Dimes is increasing its M&A efforts with a “bigger, better and bolder” strategy. From average annual revenues of £7 million to £10 million in previous years, future acquisitions will generate annual sales of up to £20 million.

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“Greater scale in the public cloud space would be good, and any additional capacity in the cyber space would also be good,” she said. “These remain our two areas of focus.”

Ms Dimes has served as both president and CEO of Iomart since September 2023, when previous CEO Reece Donovan – who largely steered the company through Covid and its aftermath – abruptly stepped down.

Experienced board director Richard Last has now been appointed as an independent non-executive chairman, freeing up some of Ms Dimes’ time to continue to focus on the growth agenda.

Mr Last has extensive experience in listed and private companies in the technology services sector. For the past six years, he has held management positions at Hyve Group, Gamma Communications, Arcontech Group and Servelec Group.

“I look forward to working with the board to build on these strong foundations and support the group in achieving its growth ambitions,” said Last.