iomart losses widen
Scottish broadband provider iomart has reported increased losses for the first six months of the year despite increasing turnover by two thirds.
For the six months to June 30 turnover was up 76 per cent on H1 2000 to £2.7 million. However, pre-tax loss for the same period increased from £1.7 million to £3.3 million.
Earlier this year iomart sold its consumer ISP, Madasafish, for £3 million cash and purchased the ADSL subscriber base of tits-up broadband operation, On Cue, for £200,000.
iomart now boasts some 2,700 ADSL business customers even though "overall market uptake for ADSL in the UK has been much less than predicted".
Today, it also announced the acquisition of German unified messaging operation CANBOX for E700,000.
Put together, the company believes that the transition to an Internet and messaging solutions outfit geared for business customers is set to deliver results.
Said chairman Nick Kuenssberg: "We have now completed significant moves to redirect the company.
"Having sold our retail ISP business Madasafish for £3 million, we have restructured and reduced staff numbers, strengthened our ADSL business with the acquisition of On-Cue.
"We believe that, despite ongoing losses, the company with cash balances of £10 million to support this revised business strategy is now favourably positioned to make real progress," he said. ®
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