The web nets the iomart group 70% rise in turnover
November 18, 2005 (PRLEAP.COM) Business Newsiomart Group plc (“iomart”), the Glasgow based security software and web-services business, has today presented its consolidated interim results for the six month period ended 30 September 2005.
• total turnover £10.95m, up 70% on previous year (£6.43m) with annualised sales running at £24m
• profit before tax £1.42m (£0.11m) and fully diluted EPS of 1.79p (0.24p)
• cash balance of £1.39m and net debt of £2.01m (12.5% of shareholders’ funds)
• gross margin improved to 82.4% (76.7%)
• web-services business now has 220,000 customers
• Ufindus local search directory successfully established
• Netintelligence fully fledged ASP model for home, SME and corporate application
• Continuing organic growth in web services business
• Netintelligence reseller channel and BT partnership provide platform for growth
• Web hosting, online local directories and online security are all growing markets
Nick Kuenssberg, chairman, commented, “”These first half year results are good, demonstrating that the company’s business model is effective and profitable. Developments in web services, focussed on the UfindUs local search directory, and Netintelligence, the on demand security software which addresses the needs of every business on an ASP basis, provide us with considerable scope for further growth.”
Kuenssberg added: “The second half is historically significantly stronger which, with the impact of recurring growth, gives us confidence for very good results for the full year.”
Angus MacSween, CEO, commented, “The first half has seen continuing organic growth in our web services business and encouraging progress with Netintelligence. UfindUs aims to become a leading provider of local internet search services to the small and micro business community, and we expect strong growth in this market for the foreseeable future. Our improvements to the Easyspace product set and infrastructure have been rewarded by higher customer retention rates and growing numbers of new customers.”
Angus MacSween added: “Netintelligence is now established as an ASP model which provides intelligent security on demand to any computer whenever or wherever that computer connects to the internet. We now have in place multiple channels to market, including Telco’s , distributors and resellers in addition to web marketing We have enjoyed limited but important success in both the consumer and business sectors, with growing recurring revenues. We believe that our ‘managed service’ platform, which can be white-labelled for resellers along with the recurring revenue opportunity, will be appealing to many potential resellers. Netintelligence, through our BT relationship, has been adopted by 15 ISP’s of varying sizes to resell into their customer base, and we are now seeing interest from overseas, particularly the USA and we expect to see US revenue building in 2006”
Finally,looking ahead to the next 6 months, MacSween added: Our markets are real and growing. Our products are proven and market ready. Our second half is historically stronger and we look forward to ongoing growth.
Turnover on continuing operations for the period was £10.95m, up from £6.43m, which represents an increase of 70% over the corresponding period last year. Total gross profit margins have increased to 82% from 77% for the same period last year.
Administrative expenses of £7.50m include a full six months expenses of Easyspace Limited, which was acquired in September 2004, and reflect the expansion of the web services business division.
The operating profit for the period was £1.52m (previous year £0.08m) and the net profit was £1.42m (£0.17m). Fully diluted earnings per share were 0.1.79p compared to 0.24p.
Cash balances at 30 September were £1.39m and net debt was £2,01m