Helal Miah, investment research analyst at The Share Centre, explains why Iomart is a ‘buy’ for the more intrepid investor…
AIM listed cloud computing company Iomart is this week’s share of the week. Iomart, which provides cloud and data services to a variety of different clients, reported a very good set of full year results. Revenues were up 18% and operating profits up 23%, driven by both acquisition and organic growth. After a number of profit warnings last year the shares have staged a good recovery.
Iomart has made good progress in integrating acquired businesses and continued to build relationships for cloud solutions with major players in the technology industry. There are good prospects for growth with government organisations, which have so far been slow to adopt cloud technologies
Iomart remains subject to takeover speculation by bigger players in the IT space due to its leading presence in cloud computing amongst UK companies. We continue to recommend Iomart as a ‘buy’ for investors looking for capital growth and willing to accept a higher level of risk.
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