- Cloud computing company Iomart cut its final dividend as a weaker margin kept a lid on profit.

For the year ended 31 March 2020, pre-tax profit rose 4% to £16.8m on-year as revenue increased 9% to £112.6m.

Gross margin reduced to 60.8% from 64.4%) as sales by Cristie Data were typically lower gross margin given the inclusion of the reselling element of their solutions, while some larger managed cloud solutions recently signed had initial contribution levels lower than the smaller infrastructure only deals from the past.

The company proposed a final dividend payment of 3.93p per share, down 22% from 5.01p, resulting in a total dividend for the year of 6.53p, down from 7.46p on-year.

Looking ahead, the company said it had traded in line with management expectations in the first two months of the new financial year, though added that there was still uncertainty concerning the timing of new projects.

'Business development continues, with good discussions with both new and existing customers, although timing of new projects is likely to be more uncertain for the remainder of this calendar year,' it added.

At 9:07am: [LON:IOM] Iomart Group PLC share price was -3.25p at 352.75p

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