iomart Group plc Annual report and accounts 2014
Annual Report and Accounts 2014 iomart Group plc Annual report and accounts 2014
OVERVIEW
1 Our Business
10 Highlights 
STRATEGIC REPORT
13 Chairman’s statement
14 Chief executive officer’s report
16 Finance director's report
19 Key performance indicators and principal risks and uncertainties
CORPORATE GOVERNANCE
22 Board of directors
24 Corporate governance report
29 Report of the board to the members on directors’ remuneration
32 Directors' report
34 Directors' responsibilities statement
FINANCIAL STATEMENTS
36 Independent auditor's report to the members of iomart Group plc
37 Consolidated statement of comprehensive income
38 Consolidated statement of financial position
39 Consolidated statement of cash flows
40 Consolidated statement of changes in equity
42 Notes to the financial statements
72 Parent company financial statements
ANNUAL GENERAL MEETING
80 Notice of annual general meeting
OFFICERS AND PROFESSIONAL ADVISERS
85 Officers and professional advisers iomart Group plc Annual report and accounts 2014
Our Business
The iomart Group is one of Europe’s leading providers of cloud 
computing and managed hosting services. The Group specialises 
in the design, delivery and management of business-critical hosting 
services enabling companies and organisations to reduce the cost, 
complexity and risks associated with maintaining their    web and 
online applications. 
The Group holds a unique position within the marketplace. By owning 
its own extensive data centre and fibre network, the company is able 
to deliver the complete set of vertical components in the hosting 
stack from network, compute through to complex cloud storage 
solutions. 
As more and more mission critical business applications move on 
to the web, so organisations need more resilience, security and 24 
hour management; the market for managed hosting services, data 
storage and the outsourcing of IT infrastructure is expected to grow 
significantly over the next few years.
“Moving our hosting to iomart has ensured we can continue to expand with the confidence that 
we have the infrastructure able to expand with us. The platform allows us to have the flexibility we 
need for our future plans and iomart's proactive support ensures we have the systems expertise to 
hand as the business expands."
Nick Creed, Digital Director, The Drum iomart Group plc Annual report and accounts 2014
“We use enterprise-class hardware which feeds through to high availability and 
recoverability. Our whole critical IT structure is safeguarded by the controls and security 
that iomart has in place."
Phil Davies, Director IS for Misys UK & EMEA
Our Locations
We own and operate one of the most comprehensive data centre networks in the 
United Kingdom. Every data centre offers full 24 x 7 on site support and is connected 
by our own fully resilient fibre network stretching over 1,800 kilometres. With our 
international points of presence (POPs) we are able to connect our clients around the 
globe. iomart Group plc Annual report and accounts 2014
Our Track 
Record
The iomart Group plc has enjoyed several years of good 
organic growth and profitability, buoyed further by eleven 
acquisitions since 2009. The financial objectives and goals 
set by iomart aim to strengthen the company’s place in the 
emerging global cloud market. There is no doubt that there 
is a long term shift towards a cloud dominated technology 
landscape, and iomart, with its infrastructure, expertise and 
product set, is well positioned to take advantage of that.
Cloud computing will be a key 
theme as corporate budgets 
continue to support online, 
outsourced and hosted IT.
High visibility from recurring 
revenues, scope to sell more services 
to customers and excellent cash flow 
makes this a high-quality business.
Steven Frazer, Shares Magazine, 
April 2014 iomart Group plc Annual report and accounts 2014
Our Products
iomart’s suite of services covers the main areas of 
hosting infrastructure compute services and storage 
that are of increasing importance to any organization 
of any size. 
The Group has created a complete end to end hosting 
service delivery platform, enabling clients to avail 
themselves of a range of hosting products and services, 
from traditional managed networking solutions to 
hosted desktops. Our portfolio of hosting and data 
centre services addresses the issues and complexities 
that are commonly experienced by customers when 
attempting to host and manage their IT infrastructures 
internally.
“SHI sought out iomart based on its extensive experience in the 
European market with BaaS and Disaster Recovery offerings based on 
EMC Avamar technologies. Our customers can now take advantage 
of iomart’s advanced customer interface, which offers a more 
user-friendly and efficient experience when executing simple or 
even advanced backup and recovery tasks.” Richard Place, General 
Manager, Cloud Services at SHI International Corp iomart Group plc Annual report and accounts 2014
Our Customers
The Group currently serves thousands of customers of all 
sizes across all sectors through six main brands – Easyspace, 
RapidSwitch, Redstation, Backup Technology, iomart and 
Melbourne.
Recognising the dawning of the ‘cloud age’ over five years ago, 
iomart Group has built its technologies from the ground up 
specifically to be delivered via the cloud. Underpinning its strategy 
was the acquisition of its own network and UK data centre estate.
This is the key feature that sets iomart Group apart from many of 
its competitors in that it is essentially a cloud services company 
with its own infrastructure.
Clients include: Liverpool FC, Royal Horticultural Society, 
Stagecoach, Mysis, Centrica, Atos, British Red Cross, Papworth 
Trust and Network Rail.
“Hosting World Whisky Day with iomart is beneficial in two ways. 
Not only does it mean the website is always up and people can 
access it from anywhere in the world, but it also lends weight when 
I am talking to the big whisky brands they can see that I am being 
supported by a successful UK Plc.”
Blair Bowman iomart Group plc Annual report and accounts 2014
Our Corporate & Social 
Responsibility
The Stronger the Community - the Stronger we are. Our approach to corporate citizenship mirrors our 
core values. We seek to involve ourselves in projects that help young people achieve their personal 
goals through teamwork. 
Host Your Kit
50 Football & Basketball youth teams across Britain received complete team strips through our 
Host Your Kit Campaign. 
“The kit looks outstanding and all players, parents and spectators 
mentioned how great that it looked. Once again, thank you! This had 
made a huge impact on the squad.”
Dave Evans, Stirling West Lothian Basket Ball Club iomart Group plc Annual report and accounts 2014
University of Strathclyde 
Business and Enterprise Challenge 
“This year’s Challenge has been outstanding and we’re really delighted that iomart supported us to enable so 
many pupils take part. The young people who take part do show significant improvements in their attitude to 
their existing academic ability and this gives them the confidence to undertake a university degree as a result.” 
Jan McGhie, Innovative Routes to Learning Centre, University of Strathclyde.
Overseas Support
“The combination of kit and donation from iomart was a massive boost to the success of the trip and is 
hugely appreciated by all.” Rebecca Cumming, Coach St Mirren U14s Basketball Squad
“Thanks to iomart, it’s the first time we’ve taken the wind band abroad so it’s a fantastic opportunity for our 
young musicians. To be playing while Spain are defending the World Cup will make it even more exciting 
as there’s bound to be an incredible atmosphere in Barcelona.” Pamela Frew, Principle Music Teacher, 
Helensburgh Academy
Supporting the next 
generation
The Group believes that it is vitally important to support projects 
that inspire young people whilst challenging them to learn about the 
opportunities that the digital world offers them. iomart Group plc Annual report and accounts 2014
Our 
Employees
Talented, motivated and creative people lie at the 
heart of our success and the Group has now grown to 
employ over 300 UK based employees. We want our 
people to thrive, prosper and to leave work every day 
feeling valued and that they have made a difference. 
In return, iomart is committed to their professional 
and personal development and to ensuring that we 
deliver a fantastic place to work.
We are proud of the impact our employees make in 
their local communities. We encourage our team to 
get involved with projects, voluntary organisations 
and charities wherever and whenever they can.
We'll support them in any number of ways from the 
provision of services, donations or equipment and 
we’re delighted to do so. Whether our employees are 
abseiling from bridges, climbing mountains, running 
marathons, running Scout Groups, organising Dance 
classes, they can be assured that their colleagues are 
cheering them on!
“I just wanted to write to say a huge thank you to everyone 
at iomart for supporting With Kids and our Christmas 
appeal. We had such a brilliant response that we were able 
to provide 101 families with food parcels and presents 
on Christmas morning. We also had 175 children at our 
Christmas Parties and all of them received presents from 
Santa. We really couldn’t have been able to support so 
many families without the generosity of you all and we 
really can’t thank you enough.” Suzy Blair, With Kids  iomart Group plc Annual report and accounts 2014
iomart in Numbers iomart Group plc Annual report and accounts 2014
Financial
· Revenue growth of 29% to £55.6m (2013: £43.1m)
· Adjusted EBITDA
1
 growth of 43% to £23.6m (2013: £16.5m)
· Adjusted profit before tax growth
2
 of 37% to £14.6m (2013: £10.7m)
· Adjusted basic earnings per share
3
 from operations increased by 29% to 10.95p (2013: 8.46p)
· Cashflow from operations increased by 62% to £24.0m (2013: £14.8m)
· Adjusted EBITDA
1
 margins increased to 42% (2013: 38%)
· Proposed final dividend increased by 25% to 1.75p per share (2013: 1.40p per share) 
Operational
· Increased European footprint and dedicated server expertise through the acquisition of 
 Redstation Limited for a maximum consideration of £8.1m
· Acquired major presence in the Cloud backup and disaster recovery market through the acquisition 
 of Backup Technology Holdings Limited for a total consideration of £23.0m
· Completion of fit out of around 600 racks of datacentre space in Maidenhead
Financial statements for year ended 31March 2014
1 Throughout these financial statements adjusted EBITDA is earnings before interest, tax, depreciation and amortisation (EBITDA) before share based payment charges and acquisition costs. Throughout 
these financial statements acquisition costs are defined as acquisition related costs and non-recurring acquisition integration costs. 
2 Throughout these financial statements adjusted profit before tax is profit before tax, amortisation charges on acquired intangible assets, share based payment charges, mark to market adjustments in 
respect of interest rate swaps, the accelerated write off of arrangement fees on the bank borrowing facilities which were repaid early in the year and acquisition costs.
3 Throughout these financial statements adjusted earnings per share is earnings per share before amortisation charges on acquired intangible assets, share based payment charges, mark to market 
adjustments in respect of interest rate swaps, the accelerated write off of arrangement fees on the bank borrowing facilities which were repaid early in the year and acquisition costs, including the taxation 
effect of these.
10
Highlights iomart Group plc Annual report and accounts 2014
Financial statements for year ended 31March 2014
Revenue Growth 
29%
to £55.6M
PBT Growth 
37%
to £14.6M
Margins 
Increased to 
42%
EBITDA Growth 
43%
to £23.6M
11
Cashflow Increased
62%
to £24.0M
Proposed Final Dividend
Increased by
25%
to 1.75p iomart Group plc Annual report and accounts 2014
“The core of our strategy is to offer all three 
main layers of the cloud - network, compute 
and storage - from resilient secure infrastructure 
through a range of ever more sophisticated 
control panels.” iomart Group plc Annual report and accounts 2014
Strategic Report
Chairman's Statement
13
I am delighted to report on another very good year for your Group. We continue to make excellent progress as we execute on our 
combined strategy of both growing our own business and acquiring others and our reputation as one of the UK’s leading cloud 
computing companies continues to develop.
We have again enjoyed a substantial increase in profitability over the year, driven both by organic and acquisitive growth. Over the 
last five years we have made eleven acquisitions in total and two of those we made this year, Redstation and Backup Technology are 
the largest to date. All are performing as expected and have been integrated into iomart’s operations. As a result of these acquisitions 
we increased our datacentre estate with the addition of a datacentre in Portsmouth and we now have datacentres in eight locations 
throughout the UK to support the delivery of our cloud solutions. We appreciate the continued support shown by the Bank of Scotland 
through the provision of additional loan facilities to help fund our acquisition activity.
All of this progress is a result of a great deal of hard work by our executives and staff and I thank them all on behalf of the Board and 
the shareholders for their efforts over the year.
We have a commitment to a progressive dividend policy as our profitability and cash generation grows. This year the Board is proposing 
to pay a final dividend of 1.75p per share on 2 September 2014 to shareholders on the register on 15 August 2014, representing an 
increase of 25% over the dividend last year. We have decided that we will continue to offer shareholders the option to participate in 
a Dividend Reinvestment Plan (DRIP) as an alternative to receiving cash. Details of the DRIP scheme will be distributed with the annual 
accounts in due course. 
With the high level of revenue visibility we enjoy, we have begun the 2015 financial year in a strong position. I look forward to another 
exciting year of growth and look ahead with considerable confidence.
Ian Ritchie
Chairman
27 May 2014
Strategic Report iomart Group plc Annual report and accounts 2014
Introduction
I am pleased once more to report on another excellent year for iomart. We have increased our revenues and profits both organically 
and through acquisition as we continue to deliver a widening range of cloud computing solutions.
Our revenues in the year were £55.6m, an increase of 29% over the previous year and our adjusted EBITDA of £23.6m showed a 43% 
increase over the previous year. 
We continue to believe in the long term opportunity for iomart as IT spending moves towards the ‘cloud’, as networks and connectivity 
expand and mobility increases. Our vision remains to be the best in the UK at the delivery of compute, storage and network in the 
cloud in a seamless, efficient and scalable way.
Market
The market continues to grow and evolve. All the trends I have spoken about in recent years remain intact.
One is the increasingly mobile world which we inhabit. Many of us have multiple devices that need to connect to data residing in 
datacentres, the totality of which effectively define the ‘cloud’.
The second is the growth in faster and more reliable connectivity, making it easier to access and operate in the cloud.
The third is the inevitable growth in the volume of data being created which needs to be stored and managed securely. 
These three overarching trends are interlinked, driving each other forward, and are set to continue growing for many years to come.
The core of our strategy is to offer all three main layers of cloud, ie network, compute and storage from resilient secure infrastructure 
through a range of ever more sophisticated control panels.
As business cycles in the cloud arena become more apparent and as we learn more about long term customer behaviour we will 
continue to develop our products to ensure we offer what the customer wants at the right price, on demand and in line with their 
growing and changing needs. This requires us to be at the leading edge of cloud technologies.
The tools and technologies used to deliver these services are constantly evolving and we continue to invest to ensure we are at the 
forefront of this evolution. It is important that as we grow bigger we continue to invest in the automation required to ensure we 
can continue to scale the business in a well thought through and planned way. There is a lot of ongoing development in network 
technology, in the compute and virtualisation layer and in the storage layer as the big technology vendors evolve their own solutions 
for a future in the cloud. We have strong and growing relationships with all our technology partners and we work hard to ensure we 
are aware of, and are following, all the relevant technology roadmaps. 
There are many IT companies who now sell ‘cloud’ services. This is more of an opportunity than a threat as we see a future where 
specialist service providers will provide wholesale cloud products to the market. iomart is well positioned to be a leading provider of 
such products.
To date it has mainly been the web-facing elements of infrastructure that have been outsourced to the cloud and the back-office 
workload continues to be handled “on premise”. Most of this back-office infrastructure is bought in the same way as it was 15 years 
ago. We believe this will change and we can already see the early adopters starting to move to the cloud. This defines the ‘dripping 
roast’ nature of the market opportunity and as I have been saying for the last five years, it has a long, long way to go.
iomart is at the forefront of this transformational shift and I expect the cloud opportunity to continue for many years to come.
Strategic Report
Chief Executive Officer's Report
14 iomart Group plc Annual report and accounts 2014
Acquisitions
We again augmented our organic growth through the acquisition of three operations during the year. In September 2013 we acquired 
Redstation Limited (“Redstation”), Backup Technology Holdings Limited (“BTL”) and Open Minded Solutions Limited (“Open Minded”). 
All three have proven to be good additions to the Group and have now been integrated into the business. We continue to look for 
businesses that fit our acquisition criteria with a view to making further acquisitions in the coming year.
Operational Review
Whilst all of our activities involve the provision of services from common infrastructure we are organised into two operating segments.
Hosting
Our Hosting segment, which now includes Redstation and BTL, continued to perform well over the year.
We provide a wide range of managed hosting services to both SMEs and corporate customers.  All our solutions are delivered from our 
network of datacentres located throughout the UK. The more complex managed hosting solutions are delivered by iomart Hosting and 
customers typically pay for these services on a monthly basis on contracts ranging between one and three years in length. We address 
the dedicated physical server market through our RapidSwitch and Redstation operations largely through online marketing. Melbourne 
delivers complex managed hosting solutions and provides us with a strong presence in the North West of England with a particular 
emphasis on the creative sector. BTL provides enterprise class cloud backup and business continuity services. 
We have made a substantial investment in our Maidenhead datacentre which has increased our overall capacity substantially and in 
addition we acquired additional datacentre space in Portsmouth as a consequence of the acquisition of Redstation.
Further investment has been made in our network to make use of the dark fibre we put in place last year with our Manchester operation 
now fully connected and we expect to integrate our Portsmouth facility into our network over the course of the current financial year. 
Revenues in this segment have grown by 40% to £44.7m (2013: £32.0m) partly as a result of the continued organic growth and in part 
due to acquisitions.
Easyspace
The Easyspace segment, which now includes Open Minded, has performed well over the year. 
Our activities within this segment provide a range of products to the micro and SME markets including domain names, shared, 
dedicated and virtual servers and email services.
There has been a significant change to the domain name market which began late in the year. There are now substantially more domain 
suffixes available and more continue to be added on a daily basis. We expect Easyspace to benefit from this new market opportunity.
As anticipated revenues of £11.0m (2013: £11.1m) have remained around the same level as in the previous year, delivering strong 
levels of cash for the Group.
 
Current trading and outlook
Trading since the year end remains encouraging and in line with our expectations.
We continue to be well placed to deliver an ever wider range of cloud services to our increasing customer base. With our growing 
reputation and ongoing investment in leading edge technologies, alongside our own development skills, we are well positioned for 
further significant growth.
I look forward, once again, with confidence to the year ahead.
Angus MacSween
Chief Executive Officer
27 May 2014
Strategic Report. Chief Executive Officer's Report
15 iomart Group plc Annual report and accounts 2014
Trading Results
Revenue
Revenues for the year grew by 29% to £55.6m (2013: £43.1m) through the combination of continued organic growth and the impact 
of acquisitions.
Our Hosting segment grew revenues by 40% to £44.7m (2013: £32.0m). This growth was helped by a full year contribution from 
Melbourne which we acquired in August 2012 and Redstation and Backup Technology both of which were acquired in September 2013. 
The growth in the Hosting segment revenues excluding the impact of acquisitions was 14%. 
Revenues within the Easyspace segment of £11.0m (2013: £11.1m) were close to the level of the previous year showing a very modest 
1% decrease.
We continue to have good revenue visibility and high levels of recurring revenue. With our larger customers we have multi-year 
contracts for the provision of complex managed hosting solutions.  Many of our smaller customers pay in advance for the provision of 
hosting services resulting in a substantial sum of deferred revenue which we then recognise during the period over which we provide 
our services.
Gross Margin
Our gross profit for the year was £37.8m (2013: £28.9m) representing a gross margin of 68.0% (2013: 67.2%) with both operating 
segments contributing to this improvement in both absolute and relative terms. The improvement in our Hosting segment is a result 
of the operational leverage of the operation together with the impact of acquisitions. In our Easyspace segment it has been as a result 
of the impact of acquisitions. 
Adjusted EBITDA
The adjusted EBITDA for the year was £23.6m (2013: £16.5m) an increase of 43%. Our percentage adjusted EBITDA margin has also 
significantly improved to 42.5% (2013: 38.3%). The Hosting segment increased both its absolute and relative margin over the period 
whilst the Easyspace segment performed very much in line with the previous year. 
The Hosting segment’s adjusted EBITDA was £21.7m (2013: £14.3m), an increase of 51.9%. In percentage terms the adjusted EBITDA 
margin has improved to 48.6% (2013: 44.7%). This greatly improved performance is a direct result of the additional gross margin 
delivered by the increase in sales revenue from the Hosting segment offset by an increase in administrative expenses. Administrative 
expenses have increased principally due to the impact of the acquisitions made in the period and the full impact of the acquisitions 
made in the previous period. The inclusion of Melbourne for the full year has contributed to the improvement in the adjusted EBITDA 
in absolute terms and has helped maintain the percentage margin improvement. Similarly the contribution from both Redstation and 
BTL since their acquisition in September has contributed to both the absolute and relative improvement in the margin. 
The Easyspace segment’s adjusted EBITDA was £5.0m (2013: £5.0m) which was the same as in the previous year. In percentage terms 
the adjusted EBITDA margin has improved slightly to 45.2% (2013: 44.9%). The improvement in adjusted EBITDA is primarily due to 
the impact of the synergies achieved through the integration of the acquisitions made in both this and the previous financial years.
Group overheads, which are not allocated to segments, include the cost of the Board, the running costs of the headquarters in 
Glasgow, Group marketing, human resource, finance and design functions and legal and professional fees for the year. These overhead 
costs have increased to £3.0m (2013: £2.8m) mainly due to increased payroll costs.
Strategic Report. 
Finance Director's Report
16 iomart Group plc Annual report and accounts 2014
Adjusted profit before tax
Depreciation charges of £7.2m (2013: £4.9m) have increased largely as a consequence of the acquisitions made in the year and also 
as a result of charges for the equipment bought to provide services to the additional Hosting segment customers.
The charge for amortisation of intangibles, excluding amortisation of intangible assets resulting from acquisitions (“amortisation of 
acquired intangible assets”) of £0.7m (2013: £0.5m) has remained fairly static over the year.
Finance income in the period was £0.1m (2013: £0.1m). Finance costs of £1.2m (2013: £0.5m), excluding the mark to market adjustment 
in respect of interest swaps on the Company’s loans and the accelerated write off of arrangement fees on the early repayment of bank 
facilities, increased substantially over the period. This was largely due to the new bank facilities which have been drawn down to fund 
the acquisitions made in the year.
After deducting the charges for depreciation, amortisation, excluding the charges for the amortisation of acquired intangible assets, 
and finance costs, excluding mark to market adjustments on the interest rate swap and the accelerated write off of arrangement fees 
on the early repayment of the bank facilities, and crediting the finance income from the adjusted EBITDA, the Group’s adjusted profit 
before tax was £14.6m (2013: £10.7m) an increase of 37%.
Profit before tax
The measure of adjusted profit before tax is a non-statutory measure which is commonly used to analyse the performance of 
companies particularly where M&A activity forms a significant part of their activities.
A reconciliation of adjusted profit before tax to reported profit before tax is shown below:
 2014 2013
Reconciliation of adjusted profit before tax to profit before tax £’000 £’000
Adjusted profit before tax 14,612 10,668
Less: Amortisation of acquired intangible assets (3,093) (1,302)
Less: Acquisition costs (374) (364)
Less: Share based payments (1,257) (258)
Less: Mark to market adjustment on interest rate swaps (20) (46)
Less: Accelerated write off of arrangement fees on early repayment of bank facilities (153) -
Profit before tax 9,715 8,698
The adjusting items are: charges for the amortisation of acquired intangible assets of £3.1m (2013: £1.3m) which have increased 
substantially as a result of the acquisitions made in the year and the full year effect of acquisitions made in previous years; costs of 
£0.4m (2013: £0.4m) as a result of acquisition costs; share based payment charges in the period of £1.3m (2013: £0.3m) which have 
increased substantially as a result of additional share options granted; a mark to market adjustment in respect of interest rate swaps 
on the Company’s  loans of £0.02m (2013: £0.05m) and the accelerated write off of arrangement fees on the early repayment of bank 
facilities during the year of £0.15m (2013: £nil).
After deducting charges for the amortisation of acquired intangible assets; acquisition costs; share based payments; mark to market 
adjustments in respect of interest rate swaps and the accelerated write off of arrangement fees on the early repayment of bank facilities 
during the year from the adjusted profit before tax; the reported profit before tax was £9.7m (2013: £8.7m) an increase of 12%.
Taxation
There is a tax charge for the year of £2.0m (2013: £1.7m). The tax charge for the year is made up of a corporation tax charge of £2.5m 
(2013: £1.5m) with a deferred tax credit of £0.5m (2013: charge £0.2m). At the year end, the Group has unused tax losses of £4.0m 
(2013: £5.1m) available for offset against future profits, which have been provided for in full within deferred tax.
Profit for the year from total operations
After deducting the tax charge for the year from the profit before tax the Group has recorded a profit for the year from total operations 
of £7.7m (2013: £6.9m).
Earnings per share
Adjusted earnings per share is based on profit for the year attributed to ordinary shareholders before share based payment charges, 
amortisation charges of acquired intangible assets, mark to market adjustments in respect of interest rate swaps, the accelerated write 
off of arrangement fees on the early repayment of bank facilities during the year, acquisition costs and the tax effect of these items was 
10.95p (2013: 8.46p) an increase of 29%.
The measure of adjusted earnings per share as described above is a non-statutory measure which is commonly used to analyse the 
performance of companies particularly where M&A activity forms a significant part of their activities.
The calculation of both adjusted earnings per share and basic earnings per share is included at note 12.
Basic earnings per share from continuing operations was 7.30p (2013: 6.91p), an increase of 6% over the year. 
 
Strategic Report. Finance Director's Report
17 iomart Group plc Annual report and accounts 2014
Acquisitions
On 4 September 2013 the Company acquired Redstation for a maximum consideration of £8.1m; on a no cash no debt, normalised 
working capital basis. An initial payment of £2.0m in cash and £1.5m in shares was made to the vendors and debt of £3.1m was 
also repaid. A further sum of £0.2m was paid in cash in December 2013 to reflect the additional debt assumed, cash acquired and 
normalised working capital position of the company at completion. An additional sum is due related to the profitability of Redstation in 
the period to March 2014 and the estimated amount to be paid in this regard is £1.2m. Payment of this sum is expected to be made 
during June 2014. 
On 30 September 2013 the Company acquired BTL for a total consideration of £23.0m; on a no cash no debt, normalised working 
capital basis. At completion, there was a payment made of £14.9m in cash, plus another £1.1m in cash to reflect the additional debt 
assumed, cash acquired and normalised working capital position of the company at completion, thereby totalling a payment of £16.0m 
in cash and £3.5m in shares to the vendors. There was also a repayment of debt of £2.6m. A further deferred sum of £2.0m was paid 
in January 2014.
On 9 September 2013 the Company acquired the entire share capital of Open Minded for a total consideration of £0.1m. Open Minded 
is a customer of Rapidswitch.
Cash flow and net cash
Net cash flows from operating activities
The Group continued to generate high levels of operating cash over the year. Cash flow from operations was £24.0m (2013: £14.8m) 
with the significant increase of 62% over the previous year’s level largely due to the improvement in adjusted EBITDA. After deducting 
payments for corporation tax of £2.3m (2013: £1.2m) the net cash flow from operating activities was £21.7m (2013: £13.6m).
Cash flow from investing activities
In line with our strategy of accelerating our growth by acquisition the Group continued to incur substantial sums on investing activities, 
spending a total of £31.5m (2013: £13.6m) in the period. Of this amount, £19.0m (2013: £8.8m), net of cash acquired on acquisition of 
£1.4m and shares issued of £5.0m, was incurred in relation to acquisition activities described above. As well as the investment in the 
year to acquire Redstation, BTL and Open Minded the Group also paid contingent and deferred considerations due on the acquisitions 
of Internet Engineering and Skymarket respectively in the previous financial year.
The Group continues to invest in property, plant and equipment through expenditure on datacentres and on equipment required 
to provide managed services to both its existing and new customers. In particular the Group significantly expanded its datacentre in 
Maidenhead and as a result the Group spent £11.7m (2013: £4.1m) on assets, net of related finance lease drawdown and non-cash 
reinstatement provisions.
Expenditure was also incurred on development costs of £0.6m (2013: £0.5m).
Cash flow from financing activities
There was net cash generated from financing activities of £11.4m (2013: £2.5m). The Company’s borrowing facilities were restructured 
in the period. Bank loans of £37.5m were drawn down (2013: £9.0m) out of which existing facilities of £14.0m (2013: £4.0m) were 
repaid, including £5.0m which had been drawn down in the period to help finance the acquisition of Redstation, and the balance of 
£18.5m was used to help finance the acquisition of BTL (2013: £5.0m used to finance the acquisition of Melbourne). Subsequently, a 
further loan repayment of £2.5m was made in March 2014. £5.7m of borrowings in acquired businesses were repaid (2013: £0.2m) of 
which £3.1m related to the acquisition of Redstation and £2.6m to the acquisition of BTL and £1.4m (2013: £1.4m) of finance leases 
were also repaid. We received £0.2m (2013: £0.6m) from the issue of shares as a result of the exercise of options by employees. We 
also made a dividend payment of £1.5m (2013: £0.9m) and incurred finance costs of £1.2m (2013: £0.6m). 
Net cash flow
As a consequence, our overall cash generation during the year was £1.6m (2013: £2.5m) which resulted in cash and cash equivalent 
balances at the end of the year of £13.0m (2013: £11.4m). After recognising bank loans of £30.0m (2013: £8.8m) and finance lease 
obligations of £2.8m (2013: £3.0m) net debt balances at the end of the period stood at £19.8m (2013: £0.4m) a level the Board is 
comfortable with given the strong cash generation of the Group.
 
Financial position
The Group is now in a position where it is generating substantial amounts of operating cash. The generation of that cash flow together 
with the committed bank loan facility for acquisitions and finance lease facilities which are available to fund capital expenditure, means 
that the Group has the liquidity it requires to continue its growth through both organic and acquisitive means.
Richard Logan
Finance Director
27 May 2014
Strategic Report. Finance Director's Report
18 iomart Group plc Annual report and accounts 2014
Key performance indicator review
 Revenue Growth 2014 2013
  Revenue £55.6m £43.1m
  Growth 29% increase 29% increase
Revenue from continuing operations grew by 29% over the year compared to a growth of 29% in the previous year. The Hosting 
segment grew revenues by 40% (2013: 37%) and the Easyspace segment declined by 1% (2013: grew by 9%).
 Adjusted EBITDA Margin 2014 2013
  Adjusted EBITDA £23.6m £16.5m
  Adjusted EBITDA margin 42% 38%
The adjusted EBITDA margin has shown a substantial improvement as a result of the Hosting segment both continuing to win new 
business and the inclusion of Redstation and BTL which were acquired during the year and Melbourne which was acquired during the 
previous year. Easyspace has also contributed to the adjusted EBITDA margin improvement through increased operational efficiencies 
resulting from the acquisitions in the previous year.
Principal risks and uncertainties
The board has established a formal process to identify risks and uncertainties through the production and maintenance of a risk 
register. There are a number of potential risks and uncertainties which have been identified as a result of this process which could 
have a material impact on the Group’s future performance. These are not all the risks which the board has identified but those that the 
Directors currently consider to be the most material. In addition to these risks Note 29 contains details of financial risks.
 Staff
 As with any service organisation iomart is dependent on the skill, experience and commitment of its employees and especially a 
 relatively small number of senior staff. The performance of the Group could be adversely affected if the required staffing levels 
 are not maintained. The Group seeks to recruit and retain suitably skilled and experienced staff by offering a challenging and 
 rewarding work environment. This includes competitive and innovative reward packages and a strong commitment to training and
 development.
 Datacentre operation
 Any downtime experienced at our datacentres would immediately have an impact on our ability to provide customers with 
 the level of service they demand. Should the Group be unable to provide the required level of service this could have an adverse 
 effect on the Group’s performance through the loss of customers and reputation. Our ongoing investment in preventative 
 maintenance and lifecycle replacement programme ensures our datacentres continue to deliver operational efficiency and 
 effectiveness.
 Network
 The service we provide to customers is dependent on the continued operation of our fibre network which connects our datacentre 
 estate. Should the network fail there would be an adverse impact on customers. The Group has implemented a resilient network 
 throughout its datacentre estate with no single points of failure to ensure the likelihood of network failure is minimised.
 Customers
 The Group provides an essential service to an extensive client base many of whom rely on the provision of that service for 
 their major internet presence. Any diminution in the level of service could have serious consequences for customer acquisition 
 and retention. Our high level of recurring revenue and our low level of customer attrition are evidence of our ability to provide the 
 level of service required.
 
 Key suppliers
 The Group is dependent on certain key suppliers for the continued operation of its business, the most significant of which are 
 those for electricity, bandwidth and servers. Were any of these key suppliers to fail in their service provision to the Group 
 this could have an adverse effect on the Group’s ability to provide services to its customers. In all cases these supplies are 
 obtained from reputable organisations chosen after a thorough selection process. After selection, the Group actively seeks to 
 maintain good relationships with the chosen suppliers. The Group also seeks to maintain either several sources of supply or in 
 the case of electricity alternative sources of power.
Strategic Report. Key Performance Indicators and Prinicipal Risks and Uncertainties
19 iomart Group plc Annual report and accounts 2014
Strategic Report. Key Performance Indicators and Prinicipal Risks and Uncertainties
 Search engine optimisation
 A significant amount of the Group’s sales revenues are generated through consumers using internet search engines to acquire 
 goods and services. Should the Group’s search engine optimisation performance deteriorate this could have an adverse effect 
 on the revenue of the Group. The Group continually monitors the position of its websites with respect to these search engines. 
 Through the allocation of experienced staff the Group seeks to maintain or enhance the position of its websites for detection 
 by internet search engines.
 Growth management
 The Group is experiencing high levels of growth through both organic and acquisitive means. As a consequence we need to
  continue to evolve as an organisation to meet the demands that such growth places on our business operations. Failure to 
 evolve in the necessary way could lead to deterioration in overall business performance. As part of our annual strategy and 
 budget review process, which is updated as necessary throughout the year we identify the resource and organisational changes 
 that are needed to support our growth. In addition a detailed integration and migration plan is produced for each acquisition 
 that is made to ensure the acquired operation is successfully integrated into the Group’s operations.
 Acquisitions
 The Group has made several acquisitions over the last years and has a stated strategy to continue to make acquisitions. This 
 produces three areas of risk:
 • Acquisition target risk – We may not be able to identify suitable targets for acquisition. Through a combination of internal 
  research and external relationships we maintain an active pipeline of potential acquisition targets.  
 • Acquisition integration risk – We may not integrate the acquired business into the Group in an effective manner and as a 
  consequence could lose staff and customers of the acquired business. For each acquisition we prepare a detailed 
  integration and migration plan which includes the participation of the vendor to ensure successful integration of the 
  acquired business into the Group’s operations.
 • Acquisition performance risk – The acquired business may not perform in line with expectations. As a consequence the 
  expected financial performance of the operation may not be achieved with a resulting adverse effect on profits and 
  cashflow. For each acquisition diligence and integration planning is undertaken and all potential synergies identified.
The Strategic Report on pages 13 to 20 has been approved by the Board and is signed on its behalf:
Richard Logan
Finance Director
27 May 2014
20 iomart Group plc Annual report and accounts 2014 21
Nottingham Forrest Ladies Under 15 team winning the League Cup
Abingdon Town FC Under 10 team
iomart supporting GB Youth Teams via its Host Your Kit Campaign iomart Group plc Annual report and accounts 2014
Corporate Governance
1. Ian Ritchie, Chairman
2. Angus MacSween, Chief Executive
3. Crawford Beveridge, Non Executive Director
4. Chris Batterham, Non Executive Director
5. Richard Logan, Group Finance Director
6. Sarah Haran, Operations Director
Board of Directors
1
3
5
2
4
6
22 iomart Group plc Annual report and accounts 2014
Sarah Haran
Operations Director
48, appointed 2000; Sarah has spent 
her career implementing and managing 
operations centres for large corporations 
such as Microsoft Inc, Compaq Inc, 
Scottish Power plc and Prestel Limited. 
She joined iomart in 1998, from Scottish 
Telecom plc and has been responsible 
for developing the day-to-day business 
processes and technical operations to 
support the Group’s customer base.
Richard Logan
Group Finance Director
56, appointed 2006; Richard is a 
chartered accountant having qualified 
with Arthur Young in 1984. Richard 
then spent 7 years with Ben Line 
Group initially as Group treasurer and 
latterly as financial director of Ben 
Line’s main container shipping division.  
From 1992 to 2002 Richard served 
as finance director of Kingston SCL a 
company which provided administration 
and billing software to the mobile 
communications market during which 
time he was involved in a management 
buy-out and subsequent trade sale of 
the company.  Immediately prior to 
joining iomart Richard served as finance 
director of ePOINT Group, a technology 
company based in Scotland.
Crawford Beveridge
Non Executive Director
68, appointed 2011; Crawford Beveridge 
CBE has over 40 years experience in 
the technology industry, including 16 
years at Sun Microsystems ("Sun"), most 
recently as Executive Vice President 
and Chairman, EMEA, APAC and the 
Americas until retiring in January 2010. 
His business background also includes 
roles with Hewlett-Packard, Digital 
Equipment Corp., Analog Devices, non-
executive director of Hitachi Global 
Storage Technologies, a subsidiary 
of Hitachi Ltd and Chief Executive of 
Scottish Enterprise. Current board roles 
include Chairman of the investment 
advisory board at Scottish Equity 
Partners and Non Executive Chairman 
of NASDAQ listed Autodesk.
Chris Batterham
Non Executive Director
59, appointed 2005; Chris was finance 
director of Unipalm plc, the first internet 
company to IPO and stayed with the 
company for 5 years following its 
takeover by UUnet.  He was CFO of 
Searchspace until 2005 and is currently 
a non executive director of Toumaz Ltd, 
SDL plc, office2office plc and chairman 
of Eckoh plc.  Chris has also served 
on the boards of Staffware plc, DBS 
Management plc, DRS plc, Betfair plc 
and The Invesco Techmark Enterprise 
Trust plc.
Angus MacSween
Chief Executive
57, appointed 2000; after a short 
service commission in the Royal Navy, 
Angus started his first business selling 
telephone systems in 1984. Since selling 
this first business he has established, 
grown and sold 5 profitable businesses 
in the telephony and internet sector. 
Following the sale of Teledata Limited, 
the UK’s leading telephone information 
services company to Scottish Telecom 
plc, Angus spent two years on the 
executive of Scottish Telecom plc where 
he was responsible for the development 
of the company's Internet division. In 
December 1998 Angus founded iomart.  
Ian Ritchie
Chairman
63, appointed 2008; currently Chairman 
of Computer Application Services Ltd, 
Interactive Design Institute Ltd, Blipfoto 
Ltd, Cogbooks Ltd and Red Fox Media 
Ltd. He is a past President of the British 
Computer Society and the current 
Vice President (Business) of the Royal 
Society of Edinburgh. Ian was founding 
chairman of several technology 
companies, including Voxar Ltd (now 
part of Toshiba), Orbital Software Group 
plc (now part of Sopheon plc), Digital 
Bridges Ltd (now part of Oberon Inc) 
and Sonaptic Ltd (now part of Wolfson 
Microelectronics plc).
23 iomart Group plc Annual report and accounts 2014
As the company is listed on the Alternative Investment Market it is not required to comply with the provisions of the UK Corporate 
Governance Code (the “Code”) issued in September 2012. However, the Board is committed to ensuring that proper standards of 
corporate governance operate and has established governance procedures and policies that are considered appropriate to the nature 
and size of the Group. 
We do not comply with the Code. We have reported on our Corporate Governance arrangements by drawing upon best practice 
available including those aspects of the Code we consider to be relevant to the Company. Your Board considers that at this stage in 
the Group’s development the expense of full compliance with the Code is not appropriate.
The Board
The Code requires the Company to have an effective Board whose role is to develop strategy and provide leadership to the Company 
as a whole, as well as ensuring a framework of controls exist which allow for the identification, assessment and management of risk, 
ultimately taking collective responsibility for the success of the Company.
Through the leadership of the Chairman, the Board sets the Company’s strategic goals; ensuring obligations to shareholders are met. 
Matters reserved for a decision of the Board include approval of Group strategy, annual budgets and business plans, acquisitions, 
disposals, business development, annual reports, interim statements, and any significant funding and capital expenditure plans.
The Board meets regularly, usually monthly, to discuss and agree on the various matters brought before it, including the trading results. 
The Company has a highly committed and experienced Board, which is supported by a senior management team, with the qualification 
and experience necessary for the running of the Group.
In addition, there is regular communication between Executive and Non-Executive Directors, where appropriate, to update the Non-
Executive Directors on matters requiring attention prior to the next Board meeting. 
Role of the Chairman and Chief Executive Officer
The Code requires that there should be a clear division of responsibilities between the running of the Board and the executive 
responsible for the Company’s business, so as to ensure that no one person has unrestricted powers of decision.
The Chairman is responsible for the leadership of the Board, ensuring its effectiveness and setting its agenda. Once strategic and 
financial objectives have been agreed by the Board, it is the Chief Executive Officer’s responsibility to ensure they are delivered upon. 
To facilitate this, the Chief Executive Officer chairs the Group’s Operations Boards which additionally comprises the other executive 
directors and, where appropriate, senior members of the management team. The day-to-day operation of the Group’s business is 
managed by these Boards.
The Chairman holds other directorships, as detailed in his biography on page 13. The Board has considered the time commitment 
required by his other roles and has concluded they do not detract from his chairmanship of the Company.
Composition of and Appointments to the Board
The Code requires that there should be a balance of Executive and Non-Executive Directors and when appointing new Directors to the 
Board there should be a formal, rigorous and transparent procedure.
The Board comprises a Non-Executive Chairman, Chief Executive Officer, Finance Director, Chief Operating Officer and two independent 
Non-Executive Directors. Short biographies of the directors are given on page 23. 
All Non-Executive Directors serving at the year-end are considered to be independent. The Board does not consider the shareholdings 
of the Non-Executive Directors as detailed on page 30 to have any effect on their independence.
The Board is satisfied with this balance between Executive and Non-Executive Directors. The Board considers that its composition is 
appropriate in view of the size and requirements of the Group’s business and the need to maintain a practical balance between 
Executive and Non-Executive Directors.
Each member of the Board brings different experience and skills to the Board and its various committees. The Board composition is 
kept under review as this mix of skills and business experience is a major contributing factor to the proper functioning of the Board, 
helping to ensure matters are fully debated and that no individual or group dominates the Board decision-making process.
 
When a new appointment to the Board is made, consideration is given to the particular skills, knowledge and experience that a 
potential new member could add to the existing Board composition. A formal process is then undertaken, which may involve external 
recruitment agencies, with appropriate consideration being given, in regards to Executive appointments, to internal and external 
candidates. Before undertaking the appointment of a Non-Executive Director, the Chairman establishes that the prospective Director 
can give the time and commitment necessary to fulfil their duties, in terms of availability both to prepare for and attend meetings and 
to discuss matters at other times.
Corporate Governance Report
24 iomart Group plc Annual report and accounts 2014
Information and Development
A further principle of the Code is that information of a sufficient quality is supplied to the Board in a timely manner. 
The Chairman is responsible for ensuring that all the Directors continually update their skills, their knowledge and familiarity with the 
Group in order to fulfil their role on the Board and the Board’s Committees. Updates dealing with changes in legislation and regulation 
relevant to the Group’s business are provided to the Board by the Company Secretary/Finance Director and through the Board 
Committees.
All Directors have access to the advice and services of the Company Secretary, who is responsible to the Board for ensuring the 
Board procedures are properly complied with and that the discussions and decisions are appropriately minuted. Directors may seek 
independent professional advice at the Company’s expense in furtherance of their duties as Directors.
Training in matters relevant to their role on the Board is available to all Board Directors. New Directors are provided with an induction 
in order to introduce them to the operations and management of the business.
Performance Evaluation
The Code requires the Board to undertake a formal and rigorous evaluation of its own performance annually and that of its committees 
and individual Directors. 
During the year a formal evaluation was conducted by means of a detailed questionnaire which was completed by each Director. The 
results of this process were collated by the Chairman and discussed by the Board collectively. The evaluation included a review of 
the performance of individual Directors, including the Chairman, and the Board Committees. Based on this evaluation the Board has 
concluded that its performance in the past year has been satisfactory. 
Re-election
Under the Code, Directors should offer themselves for re-election at regular intervals and under the Company’s Articles of Association, 
at every Annual General Meeting, at least one third of the Directors who are subject to retirement by rotation, are required to retire 
and may be proposed for re-election. In addition, any Director who was last appointed or re-appointed three years or more prior to 
the AGM is required to retire from office and may be proposed for re-election. Such retirement will count in obtaining the number 
required to retire at the AGM. New Directors, who were not appointed at the previous AGM, automatically retire at their first AGM and, 
if eligible, can seek re-appointment.
Two Directors will retire from office at the Company’s forthcoming AGM and stand for re-appointment.
Board Committees
The Board has established two committees to deal with specific aspects of the Board’s affairs: Audit and Remuneration Committees. 
The Board has also established a Nominations Committee which is chaired by Ian Ritchie and includes Crawford Beveridge, Chris 
Batterham and the Chief Executive Officer.
 
Attendance at Board and Committee Meetings
Attendances of Directors at Board and Committee meetings convened in the year, along with the number of meetings that they were 
invited to attend, are set out below:
 Board Remuneration Audit
  Committee Committee
 Held Attended Held Attended Held Attended
      
Ian Ritchie – Non-Executive Chairman 10 10 3 3 3 3
Angus MacSween  – Chief Executive Officer 10 10 - - - -
Sarah Haran  – Chief Operating Officer 10 10 - - - -
Chris Batterham – Non-Executive Director 10 10 3 3 3 3
Crawford Beveridge – Non-Executive Director 10 10 3 3 3 3
Richard Logan – Finance Director  10 10 - - - -
Corporate Governance Report
25 iomart Group plc Annual report and accounts 2014
The Audit Committee
The Audit Committee’s role is to assist the Board with the discharge of its responsibilities in relation to the internal controls and external 
audits . The Audit Committee will normally meet at least three times a year. The Audit Committee is chaired by Chris Batterham and its 
other members are Ian Ritchie and Crawford Beveridge. The Finance Director, Chief Executive Officer and other senior management 
attend meetings by invitation and the Committee also meets the external auditors without management present. Chris Batterham, as 
chairman of the Audit Committee, has recent and relevant financial experience.
During the year, the Audit Committee, operating under its terms of reference, discharged its responsibilities, including reviewing and 
monitoring:
 • interim and annual reports, information including consideration of the appropriateness of accounting policies;
 • material assumptions and estimates adopted by management;
 • developments in accounting and reporting requirements;
 • external auditors’ plans for the year-end audit of the Company and its subsidiaries;
 • the Committee’s effectiveness;
 • the Risk Register covering the systems of internal control and their effectiveness, reporting and making new recommendations 
  to the Board on the results of the review and receiving regular updates on key risk areas of financial control;
 • the performance and independence of the external auditors concluding in a recommendation to the Board on the 
  reappointment of the auditors by shareholders at the Annual General Meeting. The auditors report annually to the Committee 
  confirming their independence and stating the methods they employ to safeguard their independence;
 • non-audit fees charged by the external auditors; and
 • the formal engagement terms entered into with the external auditors.
Under its terms of reference the Audit Committee is responsible for monitoring the independence, objectivity and performance of 
external auditors, and for making a recommendation to the Board regarding the appointment of external auditors on an annual basis. 
The Group’s external auditors, Grant Thornton UK LLP, were first appointed as external auditor of the Company for the period ended 
31 March 2005.
The Remuneration Committee
The Remuneration Committee is chaired by Crawford Beveridge and its other members are Ian Ritchie and Chris Batterham. It is normal 
for the Chief Executive Officer to be invited to attend meetings except where matters under review by the Committee relate to him.
The Committee has responsibility for making recommendations to the Board on the remuneration packages of the Executive Directors 
which includes:
 • making recommendations to the Board on the Company’s policy on Directors’ remuneration and overseeing long term 
  incentive plans (including share option schemes for all employees);
 • ensuring remuneration is both appropriate to the level of responsibility and adequate to attract and/or retain Directors and 
  staff of the calibre required by the Company; and
 • ensuring that remuneration is in line with current industry practice.
Internal Control
The Directors, who are responsible for the Group’s system of internal control, have established systems to ensure that an appropriate 
level of oversight and control is provided. The systems are reviewed for effectiveness annually by the Audit Committee and the Board. 
The Group’s systems of internal control are designed to help the Company meet its business objectives by appropriately managing, 
rather than eliminating, the risks to those objectives. The controls can only provide reasonable, not absolute, assurance against material 
misstatement or loss. Executive Directors and senior management meet to review both the risks facing the business and the controls 
established to minimise those risks and their effectiveness in operation on an on-going basis. The aim of these reviews is to provide 
reasonable assurance that material risks and problems are identified and appropriate action taken at an early stage.
The Board confirms that procedures to identify, evaluate and manage the significant risks faced by the Group have been in place 
throughout the year and up to the date of approval of the Annual Report.
Corporate Governance Report
26 iomart Group plc Annual report and accounts 2014
Financial Control
The annual financial plan is reviewed and approved by the Board. Financial results with comparisons to plan and forecast results are 
reported on monthly to the Board together with a report on operational achievements, objectives and issues encountered. Significant 
variances from plan are discussed at Board meetings and actions set in place to address them.
Approval levels for authorisation of expenditure are at set levels and cascaded through the management structure with any expenditure 
in excess of predefined levels requiring approval from the executive directors.
Relations with Shareholders
The Chief Executive Officer and Finance Director have, where appropriate, had regular dialogue with shareholders and analysts to 
discuss strategic and other issues including the Company’s financial results.
The Company engages in full and open communication with both institutional and private investors and responds promptly to all 
queries received. In conjunction with the Company’s brokers and other financial advisers all relevant news is distributed in a timely 
fashion through appropriate channels to ensure shareholders are able to access material information on the Company’s progress. The 
Company’s website has a section for investors, which contains all publicly available financial information and news on the Company.
Going Concern
The Directors, having made suitable enquiries and analysis of the accounts, consider that the Group has adequate resources to 
continue in business for the foreseeable future. For this reason, the Directors continue to adopt the going concern basis in preparing 
the financial statements. In making this assessment, the Directors have considered the Group budgets, the cash flow forecasts and 
associated risks and the availability of bank and leasing facilities.
AIM Rule Compliance Report
iomart Group plc is quoted on AIM and as a result the Company has complied with AIM Rule 31 which requires the following:
 • Have in place sufficient procedures, resources and controls to enable its compliance with the AIM Rules;
 
 • Seek advice from its Nominated Advisor (“Nomad”) regarding its compliance with the Rules whenever appropriate and take that 
  advice into account;
 
 • Provide the Company’s Nomad with any information it reasonably requests in order for the Nomad to carry out its 
  responsibilities under the AIM Rules for Nominated Advisors, including any proposed changes to the Board and Provision of 
  draft notifications in advance;
 
 • Ensure that each of the Company’s Directors accepts full responsibility, collectively and individually, for compliance with the 
  AIM rules; and
 
 • Ensure that each Director discloses without delay all information which the Company needs in order to comply with AIM Rule 
  17 (Disclosure of Miscellaneous Information) insofar as that information is known to the director or could with reasonable 
  diligence be ascertained by the Director.
Quality of Personnel and Employee Involvement
The Group is committed to attracting and retaining the highest level of personnel. It strives to do this through, amongst other things, 
the application of high standards in recruitment. The Group is aware of the importance of good communication in relationships with 
its staff and also follows a policy of encouraging training.
A number of employees participate in the growth of the business through the ownership of share options with some employees also 
participating in the Group bonus scheme.
Business Ethics
The Board recognises that the Company is accountable to its shareholders and, at the same time, seeks to take into account the 
interests of all its stakeholders including customers, suppliers and subcontractors, employees, as well as the local community, and the 
environment in which it operates.
The Group maintains core values of Honesty, Integrity, Hard Work, Service and Quality and actively promotes these values in all activities 
undertaken on behalf of the Group.
Corporate Governance Report
27 iomart Group plc Annual report and accounts 2014
Customers
The Group treats all of its customers with the utmost respect and seeks to be honest and fair in all relationships with them. The Group 
provides its customers with products of high quality.
Suppliers and Subcontractors
Relationships with suppliers and subcontractors are based on mutual respect, and the Group seeks to be honest and fair in its 
relationships with suppliers and subcontractors, and to honour the terms and conditions of its agreements in place with such suppliers 
and subcontractors.
The Group is aware that the giving or accepting of bribes is not acceptable business conduct.
Employees
The Group recognises the importance of its employees and that the success of the Group is due to their efforts. The Group respects the 
dignity and rights of all its employees. The Group provides clean, healthy and safe working conditions. An inclusive working environment 
and a culture of openness are maintained by the regular dissemination of information. 
The Group endeavours to provide equal opportunities for all employees and facilitates the development of employees’ skill sets. A fair 
remuneration policy is adopted throughout the Group.
The Group does not tolerate any sexual, physical or mental harassment of its employees. The Group operates an equal opportunities 
policy and specifically prohibits discrimination on grounds of colour, ethnic origin, gender, ages, religion, political or other opinion, 
disability, or sexual orientation.  
Bruce Hall 
Company secretary
27 May 2014
Corporate Governance Report
28 iomart Group plc Annual report and accounts 2014
As the Company is listed on the Alternative Investment Market it 
is not required to comply with the provisions of the UK Corporate 
Governance Code 2012 (“Code”) issued by the Financial 
Reporting Council. However, in framing its remuneration policy 
the committee has given consideration to the Code and other 
than details of Directors’ remuneration which is required by AIM 
Rule 19 the other disclosures are voluntary as is the resolution 
to approve this report at the annual general meeting.
Remuneration committee
The remuneration committee determines, on behalf of the board, 
the Group’s policy for executive remuneration and the individual 
remuneration packages for executive directors. In setting the 
Group’s remuneration policy, the remuneration committee 
considers a number of factors, including the following:
 • salaries and benefits available to executive directors of 
  comparable companies;
 • the need to attract and retain executives of an appropriate 
  calibre; and
 • the continued commitment of executives to the Group’s 
  success through appropriate incentive schemes.
The committee normally meets at least twice per year.
Remuneration of executive directors
The remuneration packages of the executive directors comprise 
the following elements:
• Base salary
The remuneration committee sets base salaries to reflect 
responsibilities and the skill, knowledge and experience of 
the individual.  Base salaries are reviewed annually and the 
remuneration committee considers external expert advice when 
setting the level of reward packages. The executive directors do 
not receive directors’ fees.
• Bonus scheme
The executive directors are eligible to receive a bonus on 
top of their basic salary dependent on individual and Group 
performance at the discretion of the remuneration committee.  
The level of executive directors’ discretionary bonus payments is 
determined by a number of factors including the Group’s financial 
performance and the individual’s non-financial performance. For 
the executive directors, there may be an opportunity to sacrifice 
their potential bonus in exchange for a payment into a pension 
plan.
• Pensions
Pension contributions to individuals’ personal pension 
arrangements are payable by the Group at the rate of twice 
the contribution made by the director subject to a maximum 
employer contribution of 10% of basic salary.
•  Share options
The Group operates share option plans for executive directors 
and managers as a combined reward and incentive for those 
who have made a major contribution to the Group and will 
continue to play a key role in helping the Group achieve its 
objectives in the future.  Whenever an award under a share 
option plan is made performance conditions are attached to 
the award consistent with the objectives of the Group. No share 
options awarded will vest any earlier than the third anniversary 
of the date of grant of the option.
• Other benefits
The executive directors are entitled to life insurance cover and 
to participate in the Group’s Private Medical Insurance scheme.
All of the executive directors are engaged under service contracts 
which require a notice period of 6 or 12 months. 
Remuneration of non-executive directors
The fees paid to the non-executive directors are determined by 
the board. They are not entitled to receive any bonus or other 
benefits.
Non-executive directors’ letters of appointment are on a 6 
month rolling basis.
Report of the board to the members on directors' remuneration
29 iomart Group plc Annual report and accounts 2014
 Directors’ remuneration (this information has been audited)
Details of individual directors’ emoluments for the year are as follows:
     Year ended Year ended
     31 March 31 March
    Pension 2014 2013
Name of director Salary or fees Bonus Benefits contributions     Total     Total
 £ £ £ £ £ £
Angus MacSween 267,000 262,000 3,129 26,700 558,829 514,603
Chris Batterham 30,000 - - - 30,000 30,000
Crawford Beveridge  25,000 - - - 25,000 25,000
Sarah Haran 160,000 155,000 846 16,000 331,846 315,525
Richard Logan 170,000 144,500 2,306 17,000 333,806 298,058
Ian Ritchie 50,000 - - - 50,000 50,000
 
 702,000         561,500 6,281 59,700 1,329,481         1,233,186        
Directors’ interests in shares
The interests of the directors in the shares of the company at 31 March 2014, together with their interests at 1 April 2013 were as 
follows:
 Number of ordinary shares
 31 March 2014  At 1 April 2013
Name of director  
Angus MacSween 16,800,552 20,436,916
Chris Batterham  90,621 90,621
Crawford Beveridge  30,000 30,000
Sarah Haran 1,963,747 2,345,565
Richard Logan 981,393 1,254,120
Ian Ritchie 151,400 151,400
On 1 October 2013, Angus MacSween sold 3,636,364 shares at a price of 275p per share, Sarah Haran sold 381,818 shares at a price 
of 275p per share and Richard Logan sold 272,727 shares at a price of 275p per share.
Report of the board to the members on directors' remuneration
30 iomart Group plc Annual report and accounts 2014
Directors’ interests in share options (this information has been audited)
The interests of the directors at 31 March 2014 in options over the ordinary shares of the Company were as follows:
 At    At 31   Date from
Name of  1 April    March Exercise Date of which Expiry
director   2013  Exercised Granted Lapsed 2014 price Grant exerciseable date 
 
  
Angus MacSween 43,010 - - - 43,010 46.5p 06/10/2008 31/03/2009 06/10/2018
 113,334 - - - 113,334 1p 27/03/2013 31/05/2014 27/03/2023
 113,333 - - - 113,333 1p 27/03/2013 31/05/2015 27/03/2023
 113,333 - - - 113,333 1p 27/03/2013 31/05/2016 27/03/2023
         
 383,010 - - - 383,010    
         
Sarah Haran 58,115 - - - 58,115 50.5p 27/09/2007 27/09/2010 27/09/2017
 42,913 - - - 42,913 46.5p 06/10/2008 31/03/2009 06/10/2018
 80,000 - - - 80,000 1p 27/03/2013 31/05/2014 27/03/2023
 80,000 - - - 80,000 1p 27/03/2013 31/05/2015 27/03/2023
 80,000 - - - 80,000 1p 27/03/2013 31/05/2016 27/03/2023
         
 341,028 - - - 341,028    
         
Richard Logan 50,000 - - - 50,000 74.0p 24/08/2006 24/08/2009 24/08/2016
 28,495 - - - 28,495 46.5p 06/10/2008 31/03/2010 06/10/2018
 80,000 - - - 80,000 1p 27/03/2013 31/05/2014 27/03/2023
 80,000 - - - 80,000 1p 27/03/2013 31/05/2015 27/03/2023
 80,000 - - - 80,000 1p 27/03/2013 31/05/2016 27/03/2023
         
 318,495 - - - 318,495    
         
During the year no share options were awarded to or exercised by the Directors.
The market price of the company’s shares at the end of the financial period was 246.75p and the range of prices during the period 
was between 226.0p and 319.0p.
By order of the board
Crawford Beveridge
Chairman, Remuneration committee
27 May 2014
Report of the board to the members on directors' remuneration
31 iomart Group plc Annual report and accounts 2014
The directors present their annual report on the affairs of the 
Group, together with the financial statements and auditor’s 
report, for the year ended 31 March 2014.
Financial instruments
The Group’s financial instruments comprise cash and liquid 
resources, bank loans and finance leases together with various 
items such as trade debtors and trade creditors that arise 
directly from its operations.  The main purpose of these 
financial instruments is to provide finance for the Group’s 
operations. On 27 September 2013 the Group agreed a new 
multi option revolving credit facility of £20m and a term loan 
facility of £15m with Bank of Scotland plc. This replaced the 
multi option revolving credit facility of £16m which had been in 
place previously of which £10m had already been drawn down, 
including £5m drawn down during the year to help finance the 
purchase of Redstation, and a term loan facility of £4m which 
had been drawn down in full. The new facilities have been made 
available in order to finance acquisitions and for the issue of 
guarantees, bonds and indemnities.
In September 2013, £15m was drawn down on the new term 
loan facility and £17.5m was drawn down on the new multi 
option revolving credit facility and the proceeds used to repay 
the £10m which had been draw down under the previous 
revolving credit facility and to repay the £4m draw down under 
the previous term loan facility and the remaining £18.5m was 
used to fund the purchase of BTL. In March 2014, a repayment 
of £2.5m was made against the multi option revolving credit 
facility.
The £20m multi option revolving credit facility may be used 
by the Group to finance acquisitions and for the issue of 
guarantees, bonds or indemnities. The facility is available until 
October 2017 at which point any advances made under the 
revolving credit facility will become immediately repayable. In 
addition, each draw down made under this facility can be for 
either 3 or 6 months and can either be repaid or continued 
at the end of the period. Interest is charged on this loan at an 
annual rate determined by the sum of the term loan margin, 
LIBOR and the lender’s mandatory costs. The multi option 
revolving credit facility margin can fluctuate between 2.50% 
and 3.50% per annum depending on the relationship of net 
borrowings to reported profits. A one-off arrangement fee of 
£337,500 was paid when the facility was first drawn down and 
a non-utilisation fee of 45% of the multi option revolving credit 
facility margin is due on any undrawn portion of the facility. The 
effective interest rate for multi option revolving credit loans in 
the current year was 4.41% (2013: 6.69%).
The £15m term loan was drawn down in September 2013 for 
the purpose of acquiring BTL and is repayable in instalments 
until October 2017 with two instalments totalling £3m due to 
be repaid within one year. Interest is charged on this loan at an 
annual rate determined by the sum of the term loan margin, 
LIBOR and the lender’s mandatory costs. The term loan margin 
can fluctuate between 2.50% and 3.50% per annum depending 
on the relationship of net borrowings to reported profits. There 
was no arrangement fee associated with the term loan when it 
was drawn down. The effective interest rate for the term loan in 
the current year was 4.40% (2013: 2.34%).
The Group has exposure to movements in interest rates on its 
borrowings. The Group has entered into an interest rate swap 
in respect of its term loan and as a consequence the interest 
rate on that loan is fixed at 2.03% from April 2015 until maturity. 
The Group has also entered interest rate swap arrangements in 
respect of £4m which has been drawn under the multi option 
credit facility which has been fixed at 1.02% until June 2015 and 
£5m drawn under the multi option credit facility which has been 
fixed at 1.26% from August 2014 for 12 months. The remaining 
£6m drawn under the multi option credit facility is not covered 
by interest rate swap arrangements. The Group’s borrowings at 
31 March 2014 comprise finance leases totalling £2.8m (2013: 
£3.0m) and bank loans totalling £30.0m (2013: £8.8m).  The 
interest rates on the finance leases are fixed for the term of the 
lease at between 5.6% and 24.1% and the average interest rate 
was 8.4% (2013: 8.2%). 
The Group has exposure to movements in the exchange rate of 
the US dollar as certain domain name purchases are transacted 
in this currency. To protect cash flows against the level of 
exchange rate risk, the Group entered into forward exchange 
contracts to hedge foreign exchange exposures arising on the 
forecast payments. The majority of transactions of the parent 
company and the UK subsidiaries are in UK sterling and, with the 
exception of forward foreign exchange contracts and interest 
rate swaps, the Group does not use derivative instruments.  
Additional information on financial instruments is included in 
Note 29.
Dividend
The directors have not declared an interim dividend for the year 
ended 31 March 2014 (2013: nil). The directors recommend a 
final dividend for the year ended 31 March 2014 of 1.75p per 
share (2013: 1.40p per share).  
Research and development
The Group develops cloud computing products including private 
cloud platforms, hybrid cloud platforms, virtual platforms, online 
backup and storage solutions and email related products.   
Directors and their interests
The present membership of the board is set out on page 
85. In accordance with the company’s Articles of Association, 
Sarah Haran and Crawford Beveridge will offer themselves for 
re-election at the forthcoming annual general meeting.  
Details of directors’ interests in the company’s shares are set 
out in the Report of the Board to the Members on Directors’ 
Remuneration on pages 29 to 31. 
Directors' Report
32 iomart Group plc Annual report and accounts 2014
Substantial shareholdings
At 21 May 2014 the following interests in 3% or more of the 
issued ordinary share capital, excluding shares held by the 
iomart Group plc Employee Benefit Trust, had been notified to 
the Company: 
Shareholder Shares Percentage held
Angus MacSween  16,800,552  15.75%
Liontrust Asset 
Management 11,747,861 11.01%
Old Mutual Global 
Investors (UK) 6,701,304 6.28%
Majedie Asset Management 6,359,856 5.96%
River & Mercantile Asset 
Management 3,687,513 3.46%
Transactions in own shares 
During the year 40,250 (2013: nil) own shares held in treasury at 
a carrying value of 46.5p each were issued following the exercise 
of share options by employees for which a net total of £20,869 
(2013: £nil) was received.
Employee involvement
The Group regularly communicates with all staff providing 
information on developments within the Group including 
updates on the Group’s strategy and details of new products 
and services provided by the Group.
Staff are eligible to receive share options in the company under 
the Group’s share incentive schemes and it is the board’s policy 
to make specific awards as appropriate to attract and retain the 
best available people.
Employment of disabled persons
Full and fair consideration is given to applications for employment 
made by disabled persons having regard to their particular 
aptitudes and abilities.  Appropriate training is arranged for 
disabled persons, including retraining for alternative work of 
employees who become disabled, to promote their career 
development within the organisation.
Website disclaimer
The maintenance and integrity of the iomart Group plc website 
is the responsibility of the directors. The work carried out by 
the auditors does not involve consideration of these matters 
and, accordingly, the auditors accept no responsibility for any 
changes that may have occurred to the financial statements since 
they were initially presented on the website. Legislation in the 
United Kingdom governing the preparation and dissemination 
of the financial statements may differ from legislation in other 
jurisdictions.
Auditors
Grant Thornton UK LLP have expressed their willingness to 
continue in office as auditors and a resolution to reappoint them 
will be proposed at the forthcoming annual general meeting.
By order of the board
Bruce Hall 
Company secretary
27 May 2014
Directors' Report
33 iomart Group plc Annual report and accounts 2014
The directors are responsible for preparing the Strategic Report 
and Directors’ Report, the Report to the Members on Directors' 
Remuneration and the Group and Parent Company financial 
statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial 
statements for each financial year. Under that law the directors 
have to prepare the financial statements in accordance with 
International Financial Reporting Standards (IFRSs) as adopted 
by the European Union. Under company law the directors must 
not approve the financial statements unless they are satisfied 
that they give a true and fair view of the state of affairs and profit 
or loss of the Company and Group for that period. In preparing 
these financial statements, the directors are required to:
 • select suitable accounting policies and then apply them 
  consistently;
 • make judgements and accounting estimates that are 
  reasonable and prudent;
 • state whether applicable IFRSs have been followed for 
  the Group financial statements and whether United 
  Kingdom Generally Accepted Accounting Practice 
  (United Kingdom Accounting Standards and applicable 
  laws) have been followed for the Parent Company 
  financial statements, subject to any material departures 
  disclosed and explained in the financial statements;
 • prepare the financial statements on the going concern 
  basis unless it is inappropriate to presume that the 
  company will continue in business. 
 
The directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the Group and 
Parent Company’s transactions and disclose with reasonable 
accuracy at any time the financial position of the Group and 
Parent Company and enable them to ensure that the Group 
and Parent Company financial statements comply with the 
Companies Act 2006. They are also responsible for safeguarding 
the assets of the Group and Parent Company and hence for 
taking reasonable steps for the prevention and detection of 
fraud and other irregularities.
The directors confirm that: 
 • so far as each director is aware, there is no relevant 
  audit information of which the Group and Parent 
  Company’s auditor is unaware; and
 • the directors have taken all the steps that they ought 
  to have taken as directors in order to make themselves 
  aware of any relevant audit information and to establish 
  that the auditors are aware of that information.
The directors are responsible for the maintenance and integrity 
of the corporate and financial information included on the 
Group's website. Legislation in the United Kingdom governing 
the preparation and dissemination of financial statements may 
differ from legislation in other jurisdictions. 
Directors' Responsibilities Statement
34 iomart Group plc Annual report and accounts 2014
GB basketball team co-captain Kieron Achara, “This 
project by iomart and Wheatley Housing Group to 
give away free sports kit and equipment is a great 
initiative which will inspire more children get healthy 
and active.” iomart Group plc Annual report and accounts 2014
We have audited the Group financial statements of iomart Group 
Plc for the year ended 31 March 2014 which comprise the 
consolidated statement of comprehensive income, consolidated 
statement of financial position, consolidated statement of 
cash flows, the consolidated statement of changes in equity 
and the related notes. The financial reporting framework that 
has been applied in their preparation is applicable law and 
International Financial Reporting Standards (IFRSs) as adopted 
by the European Union. 
In addition to our audit of the financial statements, the directors 
have engaged us to audit the information, in the Report of the 
Board to the Members on Directors' Remuneration, required to 
be disclosed in the financial statements in accordance with Rule 
19 of the AIM Rules for Companies.
This report is made solely to the company’s members, as a body, 
in accordance with Chapter 3 of Part 16 of the Companies Act 
2006. Our audit work has been undertaken so that we might 
state to the company’s members those matters we are required 
to state to them in an auditor's report and for no other purpose. 
To the fullest extent permitted by law, we do not accept or 
assume responsibility to anyone other than the company and 
the company’s members as a body, for our audit work, for this 
report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Directors’ Responsibilities 
Statement, the directors are responsible for the preparation 
of the Group financial statements and for being satisfied that 
they give a true and fair view.  Our responsibility is to audit 
and express an opinion on the Group financial statements in 
accordance with applicable law and International Standards on 
Auditing (UK and Ireland). Those standards require us to comply 
with the Auditing Practices Board’s (APB’s) Ethical Standards for 
Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is 
provided on the Financial Reporting Council’s website at www.frc.
org.uk/apb/scope/private.cfm.
Opinion
In our opinion the Group financial statements:
 • give a true and fair view of the state of the Group's 
  affairs as at 31 March 2014 and of its profit for the year 
  then ended;
 • have been properly prepared in accordance with IFRSs 
  as adopted by the European Union; and 
 • have been prepared in accordance with the 
  requirements of the Companies Act 2006.
Separate opinion in relation to IFRSs as issued by the IASB
As explained in Note 2 to the Group financial statements, the 
Group in addition to complying with its legal obligation to apply 
IFRSs as adopted by the European Union, has also applied IFRSs 
as issued by the International Accounting Standards Board 
(IASB).
In our opinion the financial statements comply with IFRSs as 
issued by the IASB.
Opinion on other matter prescribed by the 
Companies Act 2006
In our opinion the information given in the Strategic Report 
and Directors’ Report for the financial year for which the Group 
financial statements are prepared is consistent with the Group 
financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following:
Under the Companies Act 2006 we are required to report to you 
if, in our opinion:
 • certain disclosures of directors’ remuneration specified 
  by law are not made; or
 • we have not received all the information and 
  explanations we require for our audit.
Opinion on other matters prescribed by the terms of our 
engagement
In our opinion the information, in the Report of the Board to the 
Members on Directors' Remuneration, which we were engaged 
to audit has been prepared in accordance with Rule 19 of the 
AIM Rules for Companies.
Other matter
We have reported separately on the parent company financial 
statements of iomart Group plc for the year ended 31 March 
2014.
Andrew Howie
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Glasgow
27 May 2014
Independent auditor's report to the members of iomart Group plc
36
Financial Statements iomart Group plc Annual report and accounts 2014
 Note 2014 2013
   £’000 £’000
Revenue  55,618 43,059
    
 
Cost of sales 4 (17,794) (14,131)
 
Gross profit  37,824  28,928 
 
Administrative expenses 4 (26,767) (19,768)
    
Operating profit  11,057 9,160
    
 
Analysed as:    
   
Earnings before interest, tax, depreciation, 
amortisation, acquisition costs and share based payments  23,611 16,505
Share based payments 26 (1,257) (258)
Acquisition costs 6 (374) (364)
Depreciation 4 (7,170) (4,909)
Amortisation – acquired intangible assets 4 (3,093) (1,302)
Amortisation – other intangible assets 4 (660) (512)
    
 
Finance income 7 68 87
Finance costs 7 (1,410) (549)
 
Profit before taxation  9,715 8,698
 
Taxation 9 (1,995) (1,749)
 
Profit for the year from total operations  7,720 6,949
    
 
Other comprehensive income    
 
Amounts which may be reclassified to profit or loss   
Currency translation differences  3 9
Other comprehensive income for the year  3 9
    
Total comprehensive income for the year  7,723 6,958
    
 
Attributable to equity holders of the parent  7,723 6,958
    
 
Basic and diluted earnings per share    
 
Total operations    
 
Basic earnings per share 12 7.30 p 6.91 p
Diluted earnings per share 12 7.23 p 6.63 p
The following notes form part of the primary financial statements. 
Consolidated statement of comprehensive income. Year ended 31March 2014
37 iomart Group plc Annual report and accounts 2014
  2014 2013
 Note £’000 £’000
ASSETS    
 
Non-current assets   
Intangible assets – goodwill 13 44,879 31,781
Intangible assets – other 13 19,488 8,028
Lease deposits 14 2,416 2,416
Property, plant and equipment 16 32,533 19,884
  99,316 62,109
Current assets   
Cash and cash equivalents 18 13,025 11,392
Trade and other receivables 17 7,696 5,761
       
  20,721 17,153
    
Total assets  120,037 79,262
    
LIABILITIES     
Non-current liabilities    
Non-current borrowings 21 (13,716) (5,696)
Provisions  22 (1,566) (1,097)
Deferred tax 10 (2,443) (468)
  (17,725) (7,261)
Current liabilities    
Contingent consideration due on acquisitions 20 (1,271) (358)
Trade and other payables 19 (15,158) (12,491)
Current income tax liabilities  (1,868) (812)
Current borrowings 21 (19,128) (6,124)
  (37,425) (19,785)
 
Total liabilities  (55,150) (27,046)
 
Net assets  64,887 52,216
 
EQUITY    
Share capital 24 1,078 1,058
Own shares 25 (556) (576)
Capital redemption reserve  1,200 1,200
Share premium  21,067 20,936
Merger reserve  4,983 -
Foreign currency translation reserve  2 (1)
Retained earnings  37,113 29,599
 Total equity    64,887 52,216
These financial statements were approved by the board of directors on 27 May 2014.
Signed on behalf of the board of directors
Angus MacSween
Director and chief executive officer
iomart Group plc – Company Number: SC204560
The following notes form part of the primary financial statements. 
Consolidated statement of financial position. As at 31March 2014
38 iomart Group plc Annual report and accounts 2014
  2014 2013
 Note £’000 £’000
    
Profit before taxation   9,715 8,698
Finance costs – net 7 1,342 462
Depreciation 4 7,170 4,909
Amortisation 4 3,753 1,814
Share based payments 26 1,257 258
Exchange movements  - 9
Movement in trade receivables  250 (810)
Movement in trade payables  503 (550)
Cash flow from operations  23,990 14,790
Taxation paid  (2,277) (1,200)
Net cash flow from operating activities  21,713 13,590
 
Cash flow from investing activities    
Purchase of property, plant and equipment 16 (11,651) (4,093)
Capitalisation of development costs 13 (557) (526)
Purchase of intangible assets – software 13 (24) (20)
Proceeds on disposal of property, plant and equipment  22 -
Payments for current period acquisitions net of cash acquired  (19,016) (8,796)
Contingent consideration paid on prior period acquisition  (125) (246)
Deferred consideration paid on prior period acquisition  (201) -
Finance income received  91 68
Net cash used in investing activities  (31,461) (13,613)
    
Cash flow from financing activities   
Issue of shares  154 584
Draw down of bank loans 21 37,500 9,000
Repayment of finance leases  (1,384) (1,427)
Repayment of bank loans 21 (16,503) (4,000)
Repayment of borrowings on acquisition of business  (5,731) (152)
Finance costs paid  (1,172) (621)
Dividends paid 8 (1,483) (904)
Net cash received from financing activities  11,381 2,480
    
Net increase in cash and cash equivalents  1,633 2,457
   
Cash and cash equivalents at the beginning of the year  11,392 8,935
   
Cash and cash equivalents at the end of the year 18 13,025 11,392
   
The following notes form part of the primary financial statements. 
Consolidated statement of cash flows. Year ended 31March 2014
39 iomart Group plc Annual report and accounts 2014
      Foreign
   Own Own Own currency Capital Share
  Share shares shares shares translation redemption premium Merger Retained
  capital JSOP EBT Treasury reserve reserve account reserve earnings Total
Changes in equity Note £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
           
Balance at 1 April 2012  1,048  (2,351) - - (10) 1,200  20,362  - 24,814 45,063 
           
Profit in the year  - - - - - - - - 6,949 6,949
Currency translation differences  - - - - 9 - - - - 9
Total comprehensive income  - - - - 9 - - - 6,949 6,958
           
Dividends – final (paid) 8 - - - - - - - - (904) (904)
Share based payments  26 - - - - - - - - 258 258
Deferred tax on share based 
payments  - - - - - - - - 257 257
Issue of own shares from JSOP  - 2,351 (70) (506) - - - - (1,775) -
Issue of new shares for option 
redemption 24 10 - - - - - 574 - - 584
Total transactions with owners  10 2,351 (70) (506) - - 574 - (2,164) 195
           
Balance at 31 March 2013  1,058  - (70) (506) (1) 1,200  20,936  - 29,599 52,216
           
           
Profit in the year  - - - - - - - - 7,720 7,720
Currency translation differences  - - - - 3 - - - - 3
Total comprehensive income  - - - - 3 - - - 7,720 7,723
           
Dividends – final (paid) 8 - - - - - - - - (1,483) (1,483)
Share based payments  26 - - - - - - - - 1,257 1,257
Deferred tax on share based 
payments  - - - - - - - - 19 19
Issue of own shares for option 
redemption 25 - - - 20 - - - - 1 21
Issue of new shares for option 
redemption 24 3 - - - - - 131 - - 134
Issue of new shares for business 
acquisition 24 17 - - - - - - 4,983 - 5,000
Total transactions with owners  20 - - 20 - - 131 4,983 (206) 4,948
           
           
Balance at 31 March 2014  1,078  - (70) (486) 2 1,200  21,067  4,983 37,113 64,887
The following notes form part of the primary financial statements. 
Consolidated statement of changes in equity. Year ended 31March 2014
40 iomart Group plc Annual report and accounts 2014
"It is great to see the business expanding and it shows 
the importance of the provision of these services to the 
economy as a whole.”
"Everybody relies on accessibility and use of the internet 
to access services and for marketing themselves, so this is 
important." The Rt Hon Theresa May MP
Rt Hon Theresa May MP and Angus MacSween CEO, iomart Group 
at the opening of the Maidenhead data centre expansion. iomart Group plc Annual report and accounts 2014
1. GENERAL INFORMATION
iomart Group plc is a company incorporated and domiciled in the 
United Kingdom under the Companies Act 2006. The address 
of the registered office is given on page 85 of this report. The 
nature of the Group’s operations and its principal activities are 
set out in the Strategic Report and Directors’ Report.
The financial statements are presented in UK Pounds Sterling 
because that is the currency of the primary economic 
environment in which the Group operates.
2. ACCOUNTING POLICIES
Basis of preparation
The consolidated financial statements have been prepared in 
accordance with applicable International Financial Reporting 
Standards (IFRS) as adopted by the EU and issued by the 
International Accounting Standards Board (IASB) and in 
accordance with the Companies Act 2006. The measurement 
bases and principal accounting policies of the Group are set out 
below. These policies have been consistently applied to all years 
presented unless otherwise stated.
Standards, amendments, and interpretations effective in 
year
There were no additional standards, amendments and 
interpretations that had a material impact on the Group’s 
financial statements during the year. The following standard, 
amendment and interpretation were effective in the year but 
had no material impact on the Group’s financial statements:
 • IFRS 10 (May 2011) Consolidated Financial Statements 
  (effective 1 January 2013).
 • IFRS 11 (May 2011) Joint Arrangements (effective 1 January 
  2013).
 • IFRS 12 (May 2011, updated January 2012) Disclosures of 
  Interests in Other Entities (effective 1 January 2013).
 • IFRS 13 (May 2011) Fair Value Measurement (effective 1 
  January 2013).
 • IAS 27 (May 2011) Separate Financial Statements (effective  
  1 January 2013).
 • IAS 28 (May 2011) Investments in Associates and Joint 
  Ventures (effective 1 January 2013).
 • Amendments to IAS 1 (June 2011) Presentation of Items of 
  Other Comprehensive Income (effective 1 July 2012).
 • Amendments to IAS 19 (June 2011) Employee Benefits 
  (effective 1 January 2013).
 • Amendments to IFRS 1 (March 2012) Government Loans 
  (effective 1 January 2013).
 • Amendments to IFRS 7 (December 2011) Disclosures – 
  Offsetting Financial Assets and Financial Liabilities (effective 
  1 January 2013).
 • Amendments to IFRSs 10, 11 & 12 (June 2012) Transitional 
  Guidance (effective 1 January 2013).
 • IFRIC 20 (October 2011) Stripping Costs in the Production 
  Phase of a Surface Mine (effective 1 January 2013).
New standards and interpretations of existing standards 
that are not yet effective and have not been adopted early 
by the Group
IFRS 9 Financial Instruments (effective 1 January 2015).  IFRS 
9 introduces new requirements for classifying and measuring 
financial assets and these new requirements will impact the 
disclosure and carrying values of financial assets. The impact of 
this on the financial statements of the Group has not yet been 
assessed.
In addition the following new amendments and interpretations 
of existing standards that are not yet effective and have not 
been adopted early by the Group are not expected to have 
any material impact on the Group’s consolidated financial 
statements:
 • Amendments to IAS 19 (November 2013) Defined Benefit 
  Plans: Employee Contributions (effective 1 July 2014).
 • Amendments to IAS 32 (December 2011) Offsetting 
  Financial Assets and Financial Liabilities (effective 1 January 
  2014).
 • Amendments to IAS 36 (May 2013) Recoverable Amount 
  Disclosures for Non-Financial Assets (effective 1 January 
  2014).
 • Amendments to IAS 39 (June 2013) Novation of Derivatives 
  and Continuation of Hedge Accounting (effective 1 January 
  2014).
 • Amendments to IFRS 10,12 & 27 (October 2012) 
  Investment Entities (effective 1 January 2014).
 • IFRIC 21 (March 2013) Levies (effective 1 January 2014).
Summary of Accounting Policies
Basis of consolidation 
The Group financial statements consolidate those of the 
Company and all of its subsidiary undertakings drawn up to 31 
March 2014.  Subsidiaries are entities over which the Group 
has the power to control the financial and operating policies so 
as to obtain benefits from its activities.  The Group obtains and 
exercises control through voting rights.
Unrealised gains on transactions between the Group and 
its subsidiaries are eliminated.  Unrealised losses are also 
eliminated unless the transaction provides evidence of an 
impairment of the asset transferred.  Amounts reported in the 
financial statements of subsidiaries have been adjusted where 
necessary to ensure consistency with the accounting policies 
adopted by the Group.
Acquisitions of subsidiaries are dealt with by the acquisition 
method. The acquisition method involves the recognition at fair 
value of all identifiable assets and liabilities, including contingent 
liabilities of the subsidiary, at the acquisition date, regardless of 
whether or not they were recorded in the financial statements 
of the subsidiary prior to acquisition.  On initial recognition, 
the assets and liabilities of the subsidiary are included in the 
statement of financial position at their fair values, which are also 
used as the bases for subsequent measurement in accordance 
with the Group accounting policies.
Notes to the financial statements. Year ended 31March 2014
42 iomart Group plc Annual report and accounts 2014
Where the Group’s assessment of the net fair value of a 
subsidiary’s identifiable assets acquired and liabilities assumed 
is less than the fair value of the consideration including 
contingent consideration of the business combination then the 
excess is treated as goodwill. Where the Group’s assessment 
of the net fair value of a subsidiary’s net assets and liabilities 
exceeds the fair value of the consideration including contingent 
consideration of the business combination then the excess 
is recognised in the Statement of Comprehensive Income 
immediately.
Revenue 
Revenue comprises the fair value of the consideration received 
or receivable for the sale of services in the ordinary course of 
the Group’s activities. Revenue is shown net of value-added tax, 
returns, rebates and discounts and after eliminating sales within 
the Group.
The Group recognises revenue when the amount of revenue 
can be reliably measured, it is probable that future economic 
benefits will flow from the transaction and specific criteria 
have been met for each of the Group’s activities as described 
below. The amount of revenue is not considered to be reliably 
measurable until all contingencies relating to the sale have been 
resolved. The Group bases its estimates on prior experience, 
taking into consideration the type of customer and the type of 
transaction.
 
Easyspace 
This operating segment provides domain name registration and 
hosting services.  Revenue from the provision of domain names 
is recognised at the point of sale when the title to the domain 
name passes to the customer.  Revenue from the provision of 
hosting services is recognised evenly over the period of the 
service and only after the service has been established.  Any 
unearned portion of revenue is included in payables as deferred 
revenue.
Hosting
This operating segment provides managed hosting facilities 
and services.  Revenue from the sale of facilities and services is 
spread evenly over the period of the agreement and only after 
the service has been established.  Any unearned portion of 
revenue is included in payables as deferred revenue. 
Interest
Interest is recognised on an accruals basis using the effective 
interest method.
Intangible assets
Goodwill
Goodwill arising on consolidation is capitalised on the 
consolidated statement of financial position and, subject to an 
annual impairment test, has an infinite life. The carrying value 
of goodwill is cost less accumulated impairment losses and is 
allocated to cash generating units for the purpose of impairment 
testing. The allocation is made to those cash generating units 
that are expected to benefit from the business combination. 
Impairment reviews are carried out by the Board at least 
annually. Impairments to goodwill are charged to profit or loss 
in the period which they arise.
Customer relationships
Customer relationships are recognised only on acquisition. 
The fair value is derived based on discounted cash flows from 
estimated recurring revenue streams. The carrying value is 
stated at fair value at acquisition less accumulated amortisation 
and impairment losses. The useful economic life is assessed for 
each acquisition separately. Amortisation is charged over the 
useful life of the relationships in proportion to the estimated 
future cash flows, a period which is generally between five and 
eight years.
Research and development
Expenditure on research (or the research phase of an internal 
project) is recognised as an expense in the period in which it is 
incurred. Development costs incurred are capitalised when all 
the following conditions are satisfied:
 • completion of the intangible asset is technically feasible so 
  that it will be available for use or sale
 
 • the Group intends to complete the intangible asset and 
  use or sell it
 • the Group has the ability to use or sell the intangible asset
 • the intangible asset will generate probable future economic 
  benefits
 • there are adequate technical, financial and other resources 
  to complete the development and to use or sell the 
  intangible asset, and
 • the expenditure attributable to the intangible asset during 
  its development can be measured reliably.
Development costs not meeting the criteria for capitalisation 
are expensed as incurred. The only development costs which 
are deemed to meet these criteria in the Group are in relation 
to developments by specific teams to develop products in 
the hosting asset management control system and internet 
security. Development costs capitalised are amortised on a 
straight-line basis over the estimated useful life of the asset. 
The estimated useful life is deemed to be three years for all 
developments capitalised. Amortisation charges are recognised 
in administration expenses in the consolidated statement of 
comprehensive income. 
Software
Software is recognised at cost on purchase and amortised on a 
straight-line basis over its useful economic life, which does not 
generally exceed five years.
 
Notes to the financial statements. Year ended 31March 2014
43 iomart Group plc Annual report and accounts 2014
2. ACCOUNTING POLICIES (CONTINUED)
Acquisition costs 
In accordance with IFRS 3 Business Combinations, costs 
incurred on professional fees during an acquisition are not 
included in the overall cost of the investment in the acquired 
business. Consequently, these acquisition costs are included 
as Administrative Expenses in the Consolidated Statement of 
Comprehensive Income. In addition, the costs associated with 
integrating the acquired businesses into the Group are also 
included in this category. The combination of both these types 
of expenses is also shown in the Consolidated Statement of 
Comprehensive Income as acquisition costs.
Contingent consideration 
Where an acquisition involves a potential payment of contingent 
consideration the estimate of any such payment is based on its 
fair value. To estimate the fair value an assessment is made as 
to the amount of contingent consideration which is likely to be 
paid having regard to the criteria on which any sum due will be 
calculated and is probability based to reflect the likelihood of 
different amounts being paid. Where a change is made to the fair 
value of contingent consideration within the initial measurement 
period as a result of additional information obtained on facts and 
circumstances that existed at the acquisition date then this is 
accounted for as a change in goodwill. Where changes are made 
to the fair value of contingent consideration as a result of events 
that occurred after the acquisition date then the adjustment is 
accounted for as a charge or credit to profit or loss.
Property, plant and equipment
Property, plant and equipment is stated at cost net of 
depreciation and any provision for impairment. Leasehold 
property is included in property, plant and equipment only 
where it is held under a finance lease.  
Disposal of assets 
The gain or loss arising on the disposal of an asset is determined 
as the difference between the disposal proceeds and the 
carrying amount of the asset and is recognised in profit or loss.  
Depreciation
Depreciation is calculated to write down the cost of all property, 
plant and equipment to the expected residual value by equal 
annual instalments over their estimated useful economic lives.  
All items of plant and equipment have immaterial residual 
values.  The rates generally applicable are:
Freehold property Between 2.00% and 3.33% per  
 annum
Leasehold improvements Between 6% and 10% per annum
Computer equipment Between 20% and 50% per  
 annum
Office equipment Between 10% and 25% per  
 annum
Datacentre equipment Between 6% and 10% per annum
Motor vehicles 25% per annum
Land Not depreciated
Impairment testing of goodwill, other intangible assets and 
property, plant and equipment
For the purposes of assessing impairment, assets are grouped 
at the lowest levels for which there are separately identifiable 
cash flows (cash-generating units).  As a result, some assets 
are tested individually for impairment and some are tested at 
cash-generating unit level.  Goodwill is allocated to those cash-
generating units that are expected to benefit from synergies of 
the related business combination and represent the lowest level 
within the Group at which management monitors goodwill.
Goodwill, other individual assets or cash-generating units that 
include goodwill, and those intangible assets not yet available 
for use are tested for impairment at least annually.  All 
other individual assets or cash-generating units are tested for 
impairment whenever events or changes in circumstances 
indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the 
asset’s or cash-generating unit’s carrying amount exceeds its 
recoverable amount.  The recoverable amount is the higher 
of fair value, reflecting market conditions less costs to sell, 
and value in use based on an internal discounted cash flow 
evaluation. Management estimate expected future cash flows 
from each cash generating unit and determines a suitable 
interest rate to determine the present value of the future cash 
flows. Discount factors are determined for each cash generating 
unit to reflect the underlying risks involved. The future cash flows 
used in the calculation are based on the Group’s latest approved 
budget. 
Impairment losses recognised for cash-generating units, to 
which goodwill has been allocated, are credited initially to the 
carrying amount of goodwill.  Any remaining impairment loss 
is charged pro rata to the other assets in the cash generating 
unit.  With the exception of goodwill, all assets are subsequently 
reassessed for indications that an impairment loss previously 
recognised may no longer exist.
Details of the key assumptions and judgements are shown in 
note 13.
Leased assets 
In accordance with IAS 17 Leases, the economic ownership 
of a leased asset is deemed to have been transferred to the 
Group (the lessee) if the Group bears substantially all the risks 
and rewards related to the ownership of the leased asset.  The 
related asset is recognised at the time of inception of the lease 
at the fair value of the leased asset or, if lower, the present 
value of the minimum lease payments plus incidental payments, 
if any, to be borne by the lessee.  A corresponding amount is 
recognised as a finance lease liability.  
The interest element of leasing payments represents a constant 
proportion of the capital balance outstanding and is charged to 
profit or loss over the period of the lease.  
All other leases are regarded as operating leases and the 
payments made under them are charged to profit or loss on 
a straight line basis over the lease term.  Lease incentives are 
spread over the term of the lease. Where a lease is for land and 
buildings, these are considered separately as to whether there 
is a finance lease within the lease.
Notes to the financial statements. Year ended 31March 2014
44 iomart Group plc Annual report and accounts 2014
Lease deposits 
Rental and re-instatement deposits for leasehold premises are 
included in the Consolidated Statement of Financial Position as 
either non-current assets or current assets depending on the 
length of time to maturity. Where lease deposits are interest 
earning the amount of deposit is not discounted and where they 
are not interest earning they are discounted at an appropriate 
rate.
Borrowings
Borrowings are initially stated at fair value after deduction of any 
issue costs. The carrying amount is increased by the finance costs 
in respect of the accounting period and reduced by payments 
made in the period. Borrowings are subsequently stated at 
amortised cost, any difference between the periods (net of 
transaction costs) and the redemption value is recognised in the 
profit and loss account over the period of the borrowings using 
the effective interest method.  Where borrowings are repaid 
early and new loan facilities agreed the terms of each loan 
facility are compared. Where the terms of the new borrowings 
are significantly different from those of the previous borrowings, 
the previous borrowings are treated as extinguished rather than 
modified as prescribed under IAS 30.
Reinstatement costs 
The Group has made alterations to properties which it occupies 
under lease arrangements. These lease arrangements contain 
provision for reinstatement of the property to its original 
condition at the Group’s cost at the end of the lease should the 
landlord require that to happen. In respect of property leases 
which contain such a reinstatement provision the estimated 
cost of the reinstatement is provided in the financial statements. 
The discounted value of the expected cost of reinstatement is 
recorded as a leasehold improvement within property, plant 
and equipment and is then depreciated over the remaining 
term of the lease. A matching liability is recognised at the 
same time which is increased over the period of the lease by 
way of an interest charge such that the estimated cost of the 
reinstatement has been fully provided at the end of the lease 
period.
Provisions
Provisions are recognised when the Group has a present legal or 
constructive obligation as a result of a past events, it is probable 
that an outflow of resources will be required to settle the 
obligation, and the amount can be reliably estimated. Provisions 
are measured at the present value of the expenditures expected 
to be required to settle the obligation using a pre-tax rate 
that reflects current market assessments of the time value of 
money and the risks specific to the obligation. The increase in 
the provision due to passage of time is recognised as interest 
expense.
 
Income taxes
The tax expense recognised in profit or loss comprises the 
sum of deferred tax and current tax not recognised in other 
comprehensive income or directly in equity.
Current tax is the tax currently payable based on taxable profit 
for the year. Deferred income taxes are calculated using the 
liability method on temporary differences.  Deferred tax is 
generally provided on the difference between the carrying 
amounts of assets and liabilities and their tax bases.  However, 
deferred tax is not provided on the initial recognition of goodwill, 
nor on the initial recognition of an asset or liability unless the 
related transaction is a business combination or affects tax 
or accounting profit.  Deferred tax on temporary differences 
associated with shares in subsidiaries is not provided if reversal 
of these temporary differences can be controlled by the Group 
and it is probable that reversal will not occur in the foreseeable 
future.  In addition, tax losses available to be carried forward as 
well as other income tax credits to the Group are assessed for 
recognition as deferred tax assets.
Deferred tax liabilities are provided in full, with no discounting.  
Deferred tax assets are recognised to the extent that it is 
probable that the underlying deductible temporary differences 
will be able to be offset against future taxable income.  Current 
and deferred tax assets and liabilities are calculated at tax 
rates that are expected to apply to their respective period of 
realisation, provided they are enacted or substantively enacted 
at the balance sheet date.
Changes in deferred tax assets or liabilities are recognised as a 
component of tax expense in the Statement of Comprehensive 
Income, except where they relate to items that are recognised 
directly in other comprehensive income or equity (such as share 
based remuneration) in which case the related deferred tax 
is also recognised in other comprehensive income or equity 
accordingly.
Financial assets
All financial assets are recognised when the Group becomes a 
party to the contractual provisions of the instrument.  Financial 
assets other than those categorised as at fair value through 
profit or loss are recognised at fair value plus transaction costs 
on initial recognition.  Financial assets categorised as at fair value 
through profit or loss are recognised initially at fair value with 
transaction costs expensed through profit or loss.
All income and expenses relating to financial assets that are 
recognised in the statement of comprehensive income are 
presented within ‘finance costs’ or ‘finance income’ except for 
impairment of trade receivables which is presented within 
‘administration expenses’.
Loans and receivables are non-derivative financial assets with 
fixed or determinable payments that are not quoted in an active 
market.  Loans and receivables are measured subsequent to 
initial recognition at amortised cost using the effective interest 
method, less provision for impairment.  Discounting is omitted 
where the effect of discounting is immaterial. The Group’s cash 
and cash equivalents, trade and most other receivables fall into 
this category of financial instruments.
Provision against trade and other receivables is made when 
there is objective evidence that the Group will not be able to 
collect all amounts due to it in accordance with the original 
terms of those receivables.  The amount of the write-down 
is determined as the difference between the asset’s carrying 
amount and the present value of estimated future cash flows. 
An assessment for impairment is undertaken at least at each 
reporting date.
Financial derivatives such as forward foreign exchange contracts 
are carried at fair value through profit or loss.
 
Notes to the financial statements. Year ended 31March 2014
45 iomart Group plc Annual report and accounts 2014
2.ACCOUNTING POLICIES (CONTINUED)
Financial liabilities
Financial liabilities are obligations to pay cash or other financial 
assets and are recognised when the Group becomes a party 
to the contractual provisions of the instrument.  Financial 
liabilities categorised as at fair value through profit or loss are 
recorded initially at fair value, all transaction costs are recognised 
immediately in profit or loss.  All other financial liabilities are 
recorded initially at fair value, net of direct issue costs.
Financial liabilities categorised as at fair value through profit 
or loss are re-measured at each reporting date at fair value, 
with changes in fair value being recognised in the statement of 
comprehensive income.  All other financial liabilities are recorded 
at amortised cost using the effective interest method, with 
interest-related charges recognised as an expense in finance 
costs in the statement of comprehensive income.  A financial 
liability is derecognised only when the obligation is extinguished, 
that is, when the obligation is discharged, cancelled or when 
it expires. Finance charges, including premiums payable on 
settlement or redemption and direct issue costs, are charged 
to the statement of comprehensive income on an accruals 
basis using the effective interest method and are added to the 
carrying amount of the instrument to the extent that they are 
not settled in the period in which they arise.
Foreign currency transactions
Transactions denominated in foreign currencies are recorded at 
the rate ruling at the date of the transaction. Monetary assets 
and liabilities denominated in foreign currencies at the balance 
sheet date are retranslated at the rates ruling at that date. Any 
gains or losses arising on assets and liabilities between the date 
of recording and the date of settlement are treated as gains 
or losses in the statement of comprehensive income. Forward 
foreign exchange contracts used to hedge the Group’s exposure 
to foreign currency transactions are fair valued at the balance 
date and the gain or loss is recognised in the statement of 
comprehensive income for the period.
The results and financial position of all Group entities that have a 
functional currency different from the presentation currency are 
translated into the presentation currency as follows:
 • assets and liabilities for each balance sheet presented are 
  translated at the closing rate at the date of the balance 
  sheet;
 • income and expenses for each income statement are 
  translated at average exchange rates; and
 • all resulting exchange differences are recognised as 
 a separate component of equity in the Foreign Currency 
 Translation reserve.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and 
demand deposits, together with other short-term, highly liquid 
investments that are readily convertible into known amounts of 
cash and which are subject to an insignificant risk of changes in 
value.
Dividends
Dividend distributions payable to equity shareholders are 
included in the financial statements within ‘other short term 
financial liabilities’ when a final dividend is approved in a general 
meeting.  Interim dividend distributions to equity shareholders 
approved by the Board are not included in the financial 
statements until paid.
Equity
Equity comprises the following:
 • “Share capital” represents the nominal value of equity 
  shares.
 •  “Own shares Treasury” represents the amount of the 
  Company’s own equity shares, plus attributable transaction 
  costs, that is held by the Company as treasury shares.
 • “Own shares EBT” represents the amount of the Company’s 
  own equity shares, plus attributable transaction costs, that 
  is held by the Company within the iomart Group plc 
  Employee Benefit Trust. 
 • “Share premium” represents the excess over nominal value 
  of the fair value of consideration received for equity shares, 
  net of expenses of the share issue.
 • “Merger reserve” represents the excess over nominal value 
  of the fair value of consideration received for equity shares, 
  net of expenses of the share issue, when ordinary share 
  capital is included in the consideration for business 
  acquisitions.
 • “Capital redemption reserve” represents set aside reserves 
  in relation to previous redemption of own shares.
 • “Foreign currency translation reserve” represents all 
  exchange differences on the translation of the results 
  and financial position of Group entities that have a 
  functional currency different from the presentation 
  currency.
 • “Retained earnings” represents retained profits.
Employee benefits
The Group operates a stakeholder pension scheme and also 
contributes to a number of personal pension schemes on behalf 
of executive directors and some senior employees.  The pension 
costs charged against operating profit are the contributions 
payable to the schemes in respect of the accounting period.
Share-based payment 
The Group operates equity-settled share-based remuneration 
plans for its employees. All goods and services received in 
exchange for the grant of any share-based payment are 
measured at their fair values.  Where employees are rewarded 
using share-based payments, the fair values of employees’ 
services are determined indirectly by reference to the fair value 
of the instrument granted to the employee. This fair value is 
appraised at the grant date and excludes the impact of non-
market vesting conditions (for example, profitability and sales 
growth targets).
Notes to the financial statements. Year ended 31March 2014
46 iomart Group plc Annual report and accounts 2014
Where existing share based incentives are replaced the fair 
value of the replacement share based incentives is calculated 
and compared to the current fair value of the replaced share 
based incentives. Where the fair value of the replaced share 
based incentives exceeds that of the replacement share 
based incentives then the share based payment charge to the 
statement of comprehensive income for the year continues to 
be based on the original share based incentives. Where the fair 
value of the replaced share based incentive is less than that of 
the replacement incentives then the incremental fair value is 
recognised over the remaining vesting period in addition to the 
original share based payment charge.
All share-based remuneration plans are ultimately recognised 
as an expense in the statement of comprehensive income with 
a corresponding credit to ‘retained earnings’.  
If vesting periods or other non-market vesting conditions apply, 
the expense is allocated over the vesting period, based on 
the best available estimate of the number of share options 
expected to vest.   Estimates are subsequently revised if there 
is any indication that the number of share based incentives 
expected to vest differs from previous estimates. The two main 
vesting conditions that apply to share options relate to the 
achievement of annual objectives and continuous employment. 
Any cumulative adjustment prior to vesting is recognised in 
the current period.  No adjustment is made to any expense 
recognised in prior periods if share based incentives ultimately 
exercised are different to that estimated on vesting.
Upon exercise of share based incentives the proceeds received 
net of attributable transaction costs are credited to share 
capital, and where appropriate share premium.
Segmental reporting
The Group provides segmental reporting on a basis consistent 
with the provision of internal financial information used for 
decision making purposes by the Chief Operating Decision 
Maker. Internal reports are produced on a basis consistent 
with the accounting policies adopted in the Group’s financial 
statements.
The Group calculates geographical information on the basis of 
the location of the customer.
Key judgements and sources of estimation uncertainty
The key assumptions concerning the future, and other key 
sources of estimation uncertainty at the balance sheet date, that 
have a significant risk of causing a material adjustment to the 
carrying amounts of assets and liabilities within the next financial 
year are discussed below.
 Impairment of goodwill
 The Group is required to make a judgment as to whether 
 there is any impairment of goodwill. This requires an 
 estimation of the value in use of the cash-generating units to 
 which goodwill has been allocated. The value in use calculation 
 requires the entity to estimate the future cash flows expected 
 to arise from the cash-generating unit and to select a suitable 
 discount rate in order to calculate the present value. Full 
 details of the assumptions used in the calculation are 
 disclosed in note 13.
 Valuation of intangible assets and fair value adjustments on 
 acquisition 
 As the Group continues to implement its acquisition strategy 
 there is a requirement to fair value the assets and liabilities 
 of any business acquired during the year. The Group is 
 required to make a judgment as to what intangible assets 
 exist within the acquired business at the time of the 
 acquisition. When reviewing the existence of intangible 
 assets consideration has been given to potential intangible 
 assets such as customer relationships and brand. The 
 estimation of the valuation of customer relationships is 
 based on the value in use calculation which requires 
 estimates of the future cash flows expected to arise from 
 the existing customer relationships over their useful life and 
 to select a suitable discount rate in order to calculate the 
 present value. Full details of the assumptions used in the 
 calculation of intangible assets and fair value adjustments on 
 the acquisitions that have occurred during the current year 
 are disclosed in note 11.
 Reinstatement provisions 
 At the inception of the leases and annually thereafter, the 
 Directors assess the cost of restoring leasehold premises to 
 their original condition at the end of the lease. These 
 estimates are based on information provided by external 
 advisors, the initial cost of the leasehold improvements and 
 inflation rates and discount rates until the end of the lease. 
 The reinstatement provision required at the end of the 
 current year is shown in note 22. 
 Deferred tax 
 The Group has substantial tax losses available to offset 
 future taxable profits. In assessing the amount of deferred 
 tax to be recognised as an asset the Group has estimated 
 future profitability of the relevant operating unit. The deferred 
 tax asset in relation to tax losses is shown in note 10.
Notes to the financial statements. Year ended 31March 2014
47 iomart Group plc Annual report and accounts 2014
3. SEGMENTAL ANALYSIS
The chief operating decision-maker has been identified as the Chief Executive Officer (“CEO”) of the Company. The Group has two 
operating segments and the CEO reviews the Group’s internal reporting which recognises these two segments in order to assess 
performance and to allocate resources. The Group has determined its reportable segments which are also its operating segments 
based on these reports.
The Group currently has two operating and reportable segments. 
 
 • Easyspace – this segment provides a range of shared hosting and domain registration services to micro and SME companies. 
  Open Minded was acquired during the year and has been reported as part of the Easyspace segment since acquisition.
 • Hosting – this segment provides managed hosting facilities and services, through a network of owned datacentres, to the larger 
  SME and corporate markets. The segment uses several routes to market and provides managed hosting services through iomart 
  Hosting, RapidSwitch, Titan Internet, EQSN, Melbourne and iomart Cloud Services. Redstation and BTL were acquired during the 
  year and have been reported as part of the Hosting segment since acquisition.
 
Information regarding the operation of the reportable segments is included below. The CEO assesses the performance of the operating 
segments based on revenue and a measure of Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) before any 
allocation of Group overheads, charges for share based payments or costs associated with acquisitions. This segment EBITDA is used 
to measure performance as the CEO believes that such information is the most relevant in evaluating the results of the segment. 
The Group’s EBITDA for the year has been calculated after deducting Group overheads from the EBITDA of the two segments as 
reported internally. Group overheads include the cost of the Board, all the costs of running the premises in Glasgow, the Group 
marketing, human resource, finance and design functions and legal and professional fees.
The segment information is prepared using accounting policies consistent with those of the Group as a whole.  
The assets and liabilities of the Group are not reviewed by the chief operating decision-maker on a segment basis. Therefore none of 
the Group’s assets and liabilities are segmental assets and liabilities and are all unallocated for segmental disclosure purposes. For that 
reason the Group has not disclosed details of segmental assets and liabilities.
All segments are continuing operations. No customer accounts for more than 10% of external revenues. Inter-segment transactions 
are accounted for using an arms-length commercial basis.
Operating Segments
Revenue by Operating Segment
 2014  2013
 External Internal Total External Internal Total
 £’000 £’000 £’000  £’000   £’000  £’000
Easyspace 10,959 - 10,959 11,081 - 11,081
Hosting 44,659 932 45,591 31,978 1,052 33,030
 55,618 932 56,550 43,059 1,052 44,111
Geographical Information
In presenting the consolidated information on a geographical basis, revenue is based on the geographical location of customers. The 
United Kingdom is the place of domicile of the parent company, iomart Group plc. All of the Group’s revenue originates from the United 
Kingdom. 
Analysis of Revenue by Destination
   
 2014 2013
 £’000 £’000
United Kingdom 48,005 39,190
Rest of the World 7,613 3,869
Revenue from operations 55,618 43,059
 
Notes to the financial statements. Year ended 31March 2014
48 iomart Group plc Annual report and accounts 2014
3.SEGMENTAL ANALYSIS (CONTINUED)
Profit by Operating Segment
 2014  2013
   Depreciation,   Depreciation,
  EBITDA before amortisation,  EBITDA before amortisation,
  acquisition acquisition  acquisition acquisition
  costs and share costs and  costs and share costs and
  based share based Operating based share based Operating
  payments  payments profit/(loss) payments payments profit/(loss)
  £’000 £’000 £’000  £’000  £’000 £’000
Easyspace 4,953 (605) 4,348 4,973 (550) 4,423
Hosting  21,700 (10,318) 11,382 14,289 (6,173) 8,116
Group overheads (3,042) - (3,042) (2,757) - (2,757)
Acquisition costs - (374) (374) - (364) (364)
Share based payments - (1,257) (1,257) - (258) (258)
Profit before tax and interest 23,611 (12,554) 11,057 16,505 (7,345) 9,160
Group interest and tax   (3,337)   (2,211)
Profit for the year 23,611 (12,554) 7,720 16,505 (7,345) 6,949
Group overheads, acquisition costs, share based payments, interest and tax are not allocated to segments.
4.OPERATING PROFIT
The profit for the year from total operations is stated after charging the following operating costs:
   2014  2013 
  £’000   £’000 
   
Staff costs excluding development costs capitalised and research 
and development costs written off the statement of comprehensive income  13,046 10,281
Depreciation of property plant and equipment  
 - Owned assets 6,191 3,663
 - Leased assets 979 1,246
Property, plant and equipment hire  
 - Land and buildings 2,139 1,931
 - Plant and machinery 366 208
Amortisation of intangible assets  
 - Acquired intangible assets 3,093 1,302
 - Other intangible assets 660 512
R&D expensed to statement of comprehensive income 132 125
Marketing and sales 597 613
Provision for doubtful debts 350 70
Premises and office  4,597 3,876
Included within other expenses are fees paid to the Group’s auditors, an analysis of which is provided below:
  2014 2013
Auditors’ remuneration £’000 £’000
   
Audit services:  
- Fees payable for the audit of the consolidation and the parent company accounts 38 32
- Fees payable for audit of subsidiaries, pursuant to legislation 67 58
   
Non-audit services: 
- Assurance service fees - 3
- Tax compliance fees 25 23
- Corporate finance and advisory transactions 4 8
 134 124
Notes to the financial statements. Year ended 31March 2014
49 iomart Group plc Annual report and accounts 2014
5. INFORMATION REGARDING DIRECTORS AND EMPLOYEES
 2014 2013
 £’000 £’000
Directors’ emoluments  
Aggregate emoluments 1,270 1,178
Pension contributions to personal money purchase schemes 60 55
Share based payments 1,035 9
  
Emoluments payable to the highest paid director are as follows:  
Aggregate emoluments 532 490
Pension contributions to personal money purchase schemes 27 24
 
During the year the Company made personal pension contributions to the personal pension schemes of 3 directors (2013: 3).
The aggregate amount of gains realised by directors on the exercise of share options during the year was £nil (2013: £453,594).
The detailed numerical analysis of directors’ remuneration and share options is included in the Report of the Board to the Members 
on Directors’ Remuneration on pages 29 to 31.
 2014 2013
 No. No.
Average number of persons employed by the Group (including directors):  
Technical 136 108
Customer services 53 43
Sales and marketing 79 72
Administration 25 25
 293 248
   
 2014 2013  
 £’000 £’000
Staff costs of the Group during the year in respect of employees and directors were: 
Wages and salaries 11,178 9,568
Social security costs 1,182 970
Other pension costs 118 136
Share based payments 1,257 258
 13,735 10,932
 
The Group operates a stakeholder pension scheme and also contributes to a number of personal pension schemes on behalf of 
executive directors and some senior employees.  In the case of executive directors, details of the pension arrangements are given 
within the Report of the Board to the Members on Directors’ Remuneration on pages 29 to 31. In the case of senior employees, pension 
contributions to individuals’ personal pension arrangements are payable by the Group at a rate equal to the contribution made by the 
senior employee subject to a maximum employer contribution of 5% of basic salary. 
6. ACQUISITION COSTS
    
  2014 2013
  £’000 £’000
   
Professional fees  374 220
Non-recurring integration costs  - 144
Total acquisition costs  374 364
During the year costs of £374,000 (2013: £220,000) were incurred in respect of professional fees on various acquisitions. In addition 
to these professional fees, one-off costs of £nil (2013: £144,000) directly related to the integration of acquisitions into the Group were 
also incurred.
Notes to the financial statements. Year ended 31March 2014
50 iomart Group plc Annual report and accounts 2014
7. NET FINANCE COST
    
  2014 2013
  £’000 £’000
Finance income:   
Bank interest receivable  56 75
Other interest income  12 12
Finance income for the year  68 87
    
 
Finance expenses:    
Bank loan   (962) (288)
Finance leases   (235) (194)
Other interest charges  (40) (21)
Mark to market interest adjustment  (20) (46)
Accelerated write off of arrangement fees on early repayment of facilities  (153) -
Finance expense for the year  (1,410) (549)
 
Net finance cost  (1,342) (462)
Included in other interest income is £12,000 (2013: £12,000) in respect of leasehold deposits.
8. DIVIDENDS ON SHARES CLASSED AS EQUITY
 2014 2014 2013 2013
 Pence per   Pence per
 share £’000 share £’000
    
Paid during the year:    
    
Final dividend    
Equity dividends on ordinary shares 1.40p 1,483 0.90p 904
    
    
The directors have recommended a final dividend for the year ended 31 March 2014 of 1.75p per share (2013: 1.40p per share).  
Subject to shareholder approval this proposed final dividend would be payable on 2 September 2014 to shareholders on the register 
as of 15 August 2014.
Notes to the financial statements. Year ended 31March 2014
51 iomart Group plc Annual report and accounts 2014
9. TAXATION
    
  2014 2013
  £’000 £’000
   
 
Tax charge for the year  (3,002) (1,423)
Adjustment relating to prior years  480 (121)
Total current taxation charge  (2,522) (1,544)
   
 
Origination and reversal of temporary differences  486 (311)
Effect of changes in tax rates  41 106
Total deferred taxation credit/(charge)  527 (205)
   
Total taxation charge  (1,995) (1,749)
The Group has a deferred tax asset which has been recognised in respect of tax losses within one subsidiary company, which has 
generated taxable profits and is expected to continue to do so.
The differences between the total current tax shown above and the amount calculated by applying the standard rate of UK corporation 
tax to the profit before tax are as follows:
    
  2014 2013
  £’000 £’000
 
Profit before tax  9,715 8,698
 
Tax charge @ 23% (2013 – 24%)  2,234 2,088
   
Expenses disallowed for tax purposes  263 146
Non-taxable income  - (18)
Adjustments in respect of prior years  (480) 121
Movement in deferred tax relating to changes in tax rates  (41) (106)
Effect of research and development tax reliefs   (350) (186)
Tax effect of share based remuneration  142 (299)
Movement in unprovided deferred tax related to fixed assets  103 7
Movement in deferred tax relating to prior periods  124 -
Increase in tax losses utilised and recognised  - (4)
   
Taxation charge for the year  1,995 1,749
The weighted average applicable tax rate for the year ended 31 March 2014 was 23% (2013: 24%). The total current tax charge of 
£3,002,000 (2013: £1,423,000) on operations represents 30.9% (2013: 16.3%) of the Group profit before tax of £9,715,000 (2013: 
£8,698,000). A number of changes to the UK Corporation tax system were announced in the March 2013 Budget Statement with the 
main rate of corporation tax reduced from 23% to 21% from 1 April 2014 and further reductions to the main rate have been proposed 
to reduce the rate to 20% by 1 April 2015. These changes were substantively enacted at the balance sheet date and therefore are 
included in these financial statements. 
Notes to the financial statements. Year ended 31March 2014
52 iomart Group plc Annual report and accounts 2014
10. DEFERRED TAX
The Group recognised deferred tax assets and liabilities as follows:
 2014 2013
  Deferred tax  Deferred tax Deferred tax Deferred tax
  Recognised Unrecognised Recognised Unrecognised
  £’000 £’000 £’000 £’000
 
Tax losses carried forward 831 - 1,167 -
Share based remuneration 600 - 681 -
Capital allowances timing differences 414 - 282 -
Deferred tax on acquired assets with no capital allowances (765) - (949) -
Deferred tax on customer relationships (3,523) - (1,649) -
Deferred tax liability (2,443) - (468) -
At the year end, the Group has unused tax losses of £4.0m (2013: £5.1m) available for offset against future profits. A deferred tax asset 
has been recognised in respect of £4.0m (2013: £5.1m) of such losses as these losses are expected to be used up by taxable profits 
by the end of the period covered by future projections.
The movement in the deferred tax account during the year was: 
 
    Deferred tax
   Capital on acquired
 Tax losses  allowances assets with no
 carried Share based timing capital Customer
 forward remuneration differences allowances relationships Total
 £’000 £’000 £’000 £’000 £’000 £’000
  
Balance at 1 April 2013 1,167 681 282 (949) (1,649) (468)
Acquired on acquisition of subsidiary - - 215 - (2,736) (2,521)
Credited to equity - 19 - - - 19
(Charged)/credited to statement of 
comprehensive income (222) (41) (64) 104 709 486
Effect of changes in tax rates (114) (59) (19) 80 153 41
Balance at 31 March 2014 831 600 414 (765) (3,523) (2,443)
The deferred tax asset in relation to tax losses carried forward arises from unutilised tax losses in the Hosting operating segment. 
The deferred tax asset has been recognised in line with future projections over a three year period. The basis of these projections is:
 • The consistent success of the sales teams in generating new business
 • Expectations about the retention of customers
 • Continued success in achieving a particular product mix and maintaining price yield
Based on the current profitability of certain companies within the operating segments, an assessment of projections and the 
expectations of sustainable profits in future years, a deferred tax asset in relation to the utilisation of these losses is recognised in line 
with IAS 12 ‘Income Taxes’.
The deferred tax asset in relation to share based remuneration arises from the anticipated future tax relief on the exercise of share 
options. 
The deferred tax on capital allowances timing differences arises mainly from plant and equipment in the Hosting segment where the 
tax written down value varies from the net book value.
The deferred tax on acquired assets arises from datacentre equipment acquired through the acquisition of iomart Datacentres Limited 
on which depreciation is charged but on which there are no capital allowances available.
The deferred tax on customer relationships arises from timing differences on acquired intangible assets.
Notes to the financial statements. Year ended 31March 2014
53 iomart Group plc Annual report and accounts 2014
11. ACQUISITIONS
Redstation Limited
The Group acquired 100% of the issued share capital of Redstation Limited (“Redstation”) on 4 September 2013.
Redstation is a Portsmouth based provider of dedicated servers to over 3,000 customers. Redstation owns and operates its own 
datacentres in Portsmouth, providing the Group with additional datacentre capacity. As well as the addition of datacentre facilities, this 
acquisition fills a geographical gap in the markets currently addressed by the Group.  The acquisition is in line with the Group’s strategy 
to grow its hosting operations both organically and by acquisition.
During the current period the Group incurred £126,000 of third party acquisition related costs in respect of this acquisition. These 
expenses are included in administrative expenses in the Group’s consolidated statement of comprehensive income for the period 
ended 31 March 2014.  
The following table summarises the consideration to acquire Redstation and the amounts of identified assets acquired and liabilities 
assumed at the acquisition date:
    £’000
Recognised amounts of net assets acquired and liabilities assumed: 
Cash and cash equivalents   456
Trade and other receivables   584
Property, plant and equipment   4,970
Intangible assets   2,896
Trade and other payables   (1,275)
Current income tax liabilities   (283)
Current borrowings   (83)
Non-current borrowings   (3,257)
Deferred tax liability   (292)
Identifiable net assets   3,716
Goodwill   1,184
Total consideration   4,900
 
Satisfied by: 
Cash – paid on acquisition   1,958 
Shares issued   1,500
Contingent consideration -  payable   1,200
Deferred consideration – paid   242 
Total consideration transferred   4,900 
 
The recognised amounts of all the net assets acquired and liabilities assumed are final.
An amount of £242,000 was due to the vendors in respect of the additional debt assumed, cash acquired and normalised working 
capital position of Redstation at completion and this amount was paid in December 2013.
The contingent consideration arrangement requires the Company to pay the former shareholders of Redstation an additional amount 
contingent on the level of profitability delivered by Redstation in the period to 31 March 2014. The potential undiscounted amount of 
the payment that the company could be required to make is between £nil and £1,500,000.  The amount of contingent consideration 
payable which was recognised as of the acquisition date was £1,200,000.  The fair value of the contingent consideration arrangement 
of £1,200,000 was estimated by applying the income approach to different scenarios based on historic performance and forecasts 
which had a range of outcomes of £1,040,000 to £1,297,000. A weighted average based on management estimates of the probability 
of the achievement of various levels of profitability was then calculated to give the fair value.  The level of profitability of Redstation in 
the period ended 31 March 2014 has been determined since the year end and the revised estimation of the amount payable in respect 
of the contingent consideration arrangement is £1,239,000.   The additional payment due of £39,000 is included in administrative 
expenses in the Group’s consolidated statement of comprehensive income for the year ended 31 March 2014. Payment of the 
contingent consideration is expected to be paid during June 2014.
The total consideration transferred to the vendors of £4,900,000 together with the debt repaid at completion of £3,162,000 and the 
additional £39,000 of contingent consideration resulted in an estimated total cost of acquisition of £8,101,000 including an amount of 
£242,000 in respect of the cash, additional debt and normalised working capital position of Redstation at completion.
Notes to the financial statements. Year ended 31March 2014
54 iomart Group plc Annual report and accounts 2014
11. ACQUISITIONS (CONTINUED)
Redstation Limited (continued)
The goodwill arising on the acquisition of Redstation is attributable to the premium payable for a pre-existing, well positioned business 
and the specialised, industry specific knowledge of the management and staff, together with the benefits to the Group in merging 
the business with its existing infrastructure and the anticipated future operating synergies from the combination.  The goodwill is not 
expected to be deductible for tax purposes.
The fair value of the financial assets acquired includes trade receivables with a fair value of £154,000.  The gross amount due under 
contracts is £165,000 of which £11,000 is expected to be uncollectable.
The fair value included in respect of the acquired customer relationships intangible asset is £2,647,000.
To estimate the fair value of the customer relationships intangible asset, a discounted cash flow method, specifically the income 
approach, was used with reference to the directors’ estimates of the level of revenue which will be generated from them. A post-tax 
discount rate of 10.8% was used for the valuation. Customer relationships are being amortised over an estimated useful life of 8 years. 
Redstation earned revenue of £4,202,000 and generated profits before tax of £838,000 in the period since acquisition.
Backup Technology Holdings Limited
The Group acquired 100% of the issued share capital of Backup Technology Holdings Limited (“BTL”) on 30 September 2013.
BTL is a Leeds based provider of cloud backup and disaster recovery services to over 200 customers. BTL provides the Group with 
a proven product, based on Asigra technology, for the cloud backup and recovery market and significantly enhances the Group’s 
existing capability in that area.  The acquisition is in line with the Group’s strategy to grow its hosting operations both organically and 
by acquisition.
During the current period the Group incurred £248,000 of third party acquisition related costs in respect of this acquisition. These 
expenses are included in administrative expenses in the Group’s consolidated statement of comprehensive income for the period 
ended 31 March 2014.  
 
The following table summarises the consideration to acquire BTL and the amounts of identified assets acquired and liabilities assumed 
at the acquisition date:
  £’000
Recognised amounts of net assets acquired and liabilities assumed: 
Cash and cash equivalents 897
Trade and other receivables 1,633
Property, plant and equipment 1,831
Intangible assets 11,736
Trade and other payables (868)
Current income tax liabilities (515)
Current borrowings (705)
Non-current borrowings (2,022)
Deferred tax liability (2,229)
Identifiable net assets 9,758
Goodwill 11,786
Total consideration 21,544
 
Satisfied by: 
Cash – paid on acquisition 16,044
Shares issued 3,500
Deferred consideration – paid 2,000
Total consideration transferred 21,544
The recognised amounts of all the net assets acquired and liabilities assumed are final.
The acquisition of BTL included deferred consideration arrangements that required an additional consideration of £2,000,000 to be 
paid by the Group to the vendors and this amount was paid on 31 January 2014. 
Notes to the financial statements. Year ended 31March 2014
55 iomart Group plc Annual report and accounts 2014
11. ACQUISITIONS (CONTINUED)
Backup Technology Holdings Limited (continued)
The total consideration transferred to the vendors of £21,544,000 together with the debt repaid at completion of £2,569,000 resulted 
in a total cost of acquisition of £24,113,000, including an amount of £1,113,000 in respect of the cash, additional debt and normalised 
working capital position of BTL at completion.
The goodwill arising on the acquisition of BTL is attributable to the premium payable for a pre-existing, well positioned business and the 
specialised, industry specific knowledge of the management and staff, together with the benefits to the Group in merging the business 
with its existing infrastructure and the anticipated future operating synergies from the combination.  The goodwill is not expected to 
be deductible for tax purposes.
The fair value of the financial assets acquired includes trade receivables with a fair value of £1,058,000.  The gross amount due under 
contracts is £1,383,000 of which £325,000 is expected to be uncollectable.
The fair value included in respect of the acquired customer relationships intangible asset is £10,688,000.
To estimate the fair value of the customer relationships intangible asset, a discounted cash flow method, specifically the income 
approach, was used with reference to the directors’ estimates of the level of revenue which will be generated from them. A post-tax 
discount rate of 10.8% was used for the valuation. Customer relationships are being amortised over an estimated useful life of 8 years. 
BTL earned revenue of £2,860,000 and generated profits before tax of £1,242,000 in the period since acquisition.
Open Minded Solutions Limited
The Group acquired 100% of the issued share capital of Open Minded Solutions Limited (“Open Minded”) on 9 September 2013 for a 
total consideration of £128,432.
The acquisition of Open Minded has had no material effect on the results or the financial position of the Group.
Internet Engineering Limited
The fair values of acquired assets and liabilities, including goodwill, previously disclosed as provisional for Internet Engineering Limited 
have been finalised in the current period with no changes to the fair values disclosed in the Annual Report and Accounts 2013.
Pro-forma full year information
The following summary presents the Group as if the businesses acquired during the year had all been acquired on 1 April 2013.  The 
amounts include the results of the acquired businesses, a charge for interest on the additional debt incurred to finance the acquisitions 
and depreciation and amortisation of the acquired fixed assets and intangible assets recognised on acquisition.  The amounts do not 
include any possible synergies from the acquisitions.  The information is provided for illustrative purposes only and does not necessarily 
reflect the actual results that would have occurred, nor is it necessarily indicative of the future results of the combined companies. 
 Pro-forma year ended 31 March 2014
 £’000
Revenue 61,227
 
Profit after tax for the year 7,492
Notes to the financial statements. Year ended 31March 2014
56 iomart Group plc Annual report and accounts 2014
12. EARNINGS PER ORDINARY SHARE
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of 
ordinary shares in issue during the year, after deducting any own shares held by an Employee Benefit Trust in a Joint Share Ownership 
Plan (“JSOP”).  Diluted earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the total of the 
weighted average number of ordinary shares in issue during the year, after deducting any own shares (JSOP), and adjusting for the 
dilutive potential ordinary shares relating to share options, including the dilutive effect of JSOP shares that have vested.  
Total operations  2014 2013
  £’000 £’000
Profit for the financial year and basic earnings attributed to ordinary 
shareholders  7,720 6,949
    
  No No
Weighted average number of ordinary shares:  000 000
    
 
Called up, allotted and fully paid at start of year  105,760 104,817
Own shares held in Treasury  (1,016) (11)
Shares held by Employee Benefit Trust  (141) (4,687)
New shares issued during year   1,101 468
Weighted average number of ordinary shares - basic  105,704 100,587
   
 
Dilutive impact of share options  1,005 1,018
Dilutive impact of JSOP shares  - 3,200
Weighted average number of ordinary shares - diluted  106,709 104,805
   
 
Basic earnings per share  7.30 p 6.91 p
Diluted earnings per share  7.23 p 6.63 p
Adjusted earnings per share  2014 2013
  £’000 £’000
   
Profit for the financial year and basic earnings attributed to ordinary shareholders  7,720 6,949
- Amortisation of acquired intangible assets  3,093 1,302
- Acquisition costs  374 364
- Shared based payments  1,257 258
- Mark to market interest adjustment  20 46
- Accelerated write off of arrangement fees  153 -
- Tax impact of adjusted items  (1,039) (409)
Adjusted profit for the financial year and adjusted earnings attributed
to ordinary shareholders  11,578 8,510
    
 
Adjusted basic earnings per share  10.95 p 8.46 p
Adjusted diluted earnings per share  10.85 p 8.12 p
 
Notes to the financial statements. Year ended 31March 2014
57 iomart Group plc Annual report and accounts 2014
13. INTANGIBLE ASSETS 
 
         Domain      
  Development Customer  Beneficial names & IP
 Goodwill costs relationships Software contracts addresses Total
  £’000  £’000 £’000  £’000  £’000  £’000  £’000
Cost       
At 1 April 2012 27,544 1,585 3,467 580  - 31  33,207
Additions 4,237 - - 20 - - 4,257
Acquired on acquisition of subsidiary - - 6,177 - 86 - 6,263
Development cost capitalised - 526 - - - - 526
At 1 April 2013 31,781 2,111 9,644 600  86  31  44,253
Additions 13,098 - - 24 - - 13,122
Disposals - - - (15) - - (15)
Acquired on acquisition of subsidiary - - 13,335 1,048 - 249 14,632
Development cost capitalised - 557 - - - - 557
At 31 March 2014 44,879 2,668 22,979 1,657  86  280  72,549
       
Accumulated amortisation:       
At 1 April 2012 - (988)  (1,181)  (432)  - (29)  (2,630) 
Charge for the year - (408) (1,297) (102) (5) (2) (1,814)
At 1 April 2013 - (1,396)  (2,478)  (534)  (5) (31)  (4,444) 
Disposal - - - 15 - - 15
Charge for the year - (473) (3,086) (156) (7) (31) (3,753)
At 31 March 2014 - (1,869)  (5,564)  (675)  (12) (62)  (8,182) 
       
Carrying amount:       
       
At 31 March 2014 44,879 799 17,415  982  74 218  64,367
       
At 31 March 2013 31,781 715 7,166  66  81 -  39,809
All amortisation and impairment charges are included in the depreciation, amortisation and impairment of non-financial assets 
classification, which is disclosed as administration expenses in the statement of comprehensive income. 
During the year, goodwill was reviewed for impairment in accordance with IAS 36 “Impairment of Assets”. No impairment charges (2013: 
nil) arose as a result of this review. For this review goodwill was allocated to individual Cash Generating Units (CGU) on the basis of 
the Group’s operations. The goodwill acquired in the Open Minded Solutions acquisition in the current year has been allocated to the 
Easyspace CGU and the goodwill acquired in the Redstation and Backup Technology acquisitions have been allocated to the Hosting 
CGU, as these are the CGUs expected to benefit from the respective business combinations. 
The carrying value of goodwill by each CGU is as follows: 
Cash Generating Units (CGU)   
 2014 2013
 £’000 £’000
Easyspace 17,137 17,009
Hosting 27,742 14,772
 44,879 31,781
The recoverable amount of a CGU is determined based on value-in-use calculations. These calculations use pre-tax cash flow 
projections based on financial budgets approved by the Board covering a two-year period. These projections are the result of detailed 
planning and assume similar levels of organic growth as the Group has experienced in the previous year unless there is a reason to 
alter historic growth rates and also full year contributions from acquisitions. 
Notes to the financial statements. Year ended 31March 2014
58 iomart Group plc Annual report and accounts 2014
13. INTANGIBLE ASSETS (CONTINUED)
The growth rates and margins used to extrapolate estimated future performance in the 3 years after the initial 2 year period continue 
to be based on past growth performance adjusted downwards to take into account the additional risk due to the passage of time. The 
growth rate does not exceed the long-term average growth rate for the business in which the CGU operates. The growth rates used to 
estimate future performance beyond the periods covered by the annual and strategic planning processes do not exceed the long-term 
average growth rates for similar products.
The assumptions used for the CGU included within the impairment reviews are as follows:
    
  Easyspace Hosting
Discount rate   9% 10%
Average growth rate in years 3 to 5  2.25% 3.50%
Future perpetuity rate   2.25% 2.25%
Initial period for which cash flows are estimated (years)  2 2
Based on an analysis of the impairment calculation’s sensitivities to changes in key parameters (growth rate, discount rate and pre-tax 
cash flow projections) there was no reasonably possible scenario where the CGU’s recoverable amount would fall below its carrying 
amount. 
14. LEASE DEPOSITS 
The lease deposits of £2,416,000 (2013: £2,416,000) are made up of a rental deposit of £784,000 (2013: £784,000) and a reinstatement 
deposit of £1,632,000 (2013: £1,632,000). The rental and reinstatement deposits are due to be repaid at the end of the lease which at 
the earliest is July 2020. 
The Group is due to receive interest on the lease deposit at the prevailing market rate and therefore has not been discounted. 
Notes to the financial statements. Year ended 31March 2014
59 iomart Group plc Annual report and accounts 2014
15. PRINCIPAL SUBSIDIARIES
The following subsidiaries have been consolidated in the Group financial statements:
 Ordinary share capital
    Owned by
 Country of   Owned by the subsidiary
 registration  company undertakings
 and operation Activity % %
iomart Limited  Scotland Dormant  100 -
iomart Hosting Limited  Scotland Managed hosting services 100 -
iomart Cloud Services Limited  Scotland Managed hosting services 100 -
EQSN Limited Scotland Non-trading 100 -
iomart Virtual Servers Hosting Limited  Scotland Dormant 100 -
Netintelligence Limited  Scotland Dormant 100 -
iomart Development Limited Scotland Dormant 100 -
iomart Cloud Inc       USA Managed hosting services 100 -
Easyspace Limited England Webservices 100 -
Open Minded Solutions Limited England Webservices 100 -
Backup Technology Holdings Limited England Non-trading 100 -
Backup Technology Limited England Non-trading - 100
Switch Media Limited England Webservices 100 -
Internet Engineering Limited England Webservices 100 -
Redstation Limited England Webservices 100 -
My Documents Limited England Dormant - 100
Switch Media (Ireland) Limited England Webservices - 100
Global Gold Network Limited England Webservices - 100
Global Gold Holdings Limited England Non-trading 100 -
Skymarket Limited England Non-trading 100 -
Rapidswitch Limited England Non-trading 100 -
Titan Internet Limited England Non-trading 100 -
Melbourne Server Hosting Limited England Managed hosting services 100 -
iomart Datacentres Limited  England Non-trading 100 -
Internetters Limited England Dormant - 100
NicNames Limited England Dormant - 100
Web Genie Internet Limited England Non-trading - 100
 
 
Notes to the financial statements. Year ended 31March 2014
60 iomart Group plc Annual report and accounts 2014
16. PROPERTY, PLANT AND EQUIPMENT
  Leasehold
 Freehold improve- Datacentre Computer Office Motor
 property ments equipment equipment equipment vehicles Total
 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Cost:       
At 1 April 2012 837  3,624  9,732  11,447  826  38 26,504 
Additions in the year  - 1,505 1,134 4,991 84 12 7,726
Acquisition of subsidiaries - 51 349 700 341 - 1,441
Disposals in the year - - - - - (7) (7)
At 31 March 2013 837  5,180  11,215  17,138  1,251  43 35,664 
Additions in the year  - 1,195 5,305 6,290 249 - 13,039
Acquisition of subsidiaries 1,225 357 325 4,831 59 5 6,802
Disposals in the year - - - (192) - - (192)
At 31 March 2014 2,062  6,732  16,845  28,067  1,559  48 55,313 
       
Accumulated depreciation:       
At 1 April 2012 (59) (821) (2,831) (6,594) (554) (19) (10,878)
Charge for the year (20) (276) (844) (3,624) (125) (20) (4,909)
Disposals in the year - - - - - 7 7
At 31 March 2013 (79) (1,097) (3,675) (10,218) (679) (32) (15,780)
Charge for the year (37) (321) (1,109) (5,535) (164) (4) (7,170)
Disposals in the year - - - 170 - - 170
At 31 March 2014 (116) (1,418) (4,784) (15,583) (843) (36) (22,780)
       
Carrying amount:       
At 31 March 2014 1,946 5,314  12,061  12,484  716 12 32,533 
            
At 31 March 2013 758 4,083  7,540  6,920  572 11 19,884 
The net book value of computer equipment held under finance lease at 31 March 2014 was £1,839,000 (2013: £1,554,000) and the 
net book value of datacentre equipment held under finance lease at 31 March 2014 was £690,000 (2013: £778,000). Of the total 
additions in the year of £13,039,000 (2013: £7,726,000), £894,000 (2013: £1,621,000) were funded by finance leases, £1,577,000 (2013: 
£1,512,000) was included in trade creditors as unpaid invoices at the year end resulting in a net £65,000 (2013: £1,041,000) movement 
in trade creditors and £429,000 (2013: £971,000) related to non-cash reinstatement provisions. Consequently, the consolidated 
statement of cash flows discloses a figure of £11,651,000 (2013: £4,093,000) as the cash outflow in respect of property, plant and 
equipment additions in the year.
17. TRADE AND OTHER RECEIVABLES
    
  2014 2013
  £’000 £’000
Trade receivables  3,939 2,546
Less: Provision for impairment  (686) (376)
Trade receivables (net)  3,253 2,170
Other receivables  442 421
Prepayments and accrued income   4,001 3,170
Trade and other receivables     7,696 5,761
The carrying amount of trade and other receivables approximates to their fair value, which has been calculated based on expectations 
of debt recovery from historic performances feeding into impairment provision calculations. Some of the higher value trade receivables 
in the Hosting segment are reviewed individually for impairment and judgment made as to any likely impairment based on historic 
trends and the latest communication with specific customers. The balance of trade receivables in the Group are individually small in 
terms of value, so are considered for impairment by business unit specific provision calculations and are not individually impaired.
Notes to the financial statements. Year ended 31March 2014
61 iomart Group plc Annual report and accounts 2014
17. TRADE AND OTHER RECEIVABLES (CONTINUED)
To consider the total exposure to credit risks, the Group uses figures net of VAT. At 31 March 2014, £2,116,000 (2013: £1,720,000) of 
net trade receivables were fully performing. Net trade receivables of £1,137,000 (2013: £450,000) were past due, but not impaired. 
The credit quality of financial assets that are neither past due or impaired can be assessed by reference to the customer type. Trade 
receivables consist of a large number of customers in various industries and geographical areas. The Group is not exposed to any 
significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The aging below 
shows that almost all are less than three months old and historic performance indicates a high probability of payment for debts in this 
aging. Those over three months relate to a small number of larger customers without history of default.
  2014 2013
  £’000 £’000
Up to 3 months  1,037 403
Over 3 months but less than 6 months  89 45
Over 6 months but less than 1 year  11 2
Total unimpaired trade receivables which are past due    1,137 450
The movement in the allowance for impairment in respect of trade receivables during the year was as follows:
   
  2014 2013
  £’000 £’000
Balance at start of the year  376 371
Increase/(decrease) in provision for receivables impairment  192 (5)
Fair value of trade receivable provision acquired during the year  118 10
Balance at end of year    686 376
18. CASH AND CASH EQUIVALENTS
    
  2014 2013
  £’000 £’000
Cash at bank and on hand   13,025 11,392
Cash and cash equivalents  13,025 11,392
The credit risk on cash and cash equivalents is considered to be negligible because the counter parties are UK banking institutions. The 
effective interest rate earned on short term deposits was 0.50% (2013: 0.85%).
 
19. TRADE AND OTHER PAYABLES
    
  2014 2013
  £’000 £’000
    
Trade payables  (3,733) (3,580)
Other taxation and social security  (1,360) (995)
Accruals  (4,334) (3,539)
Deferred income  (5,677) (4,372)
Other creditors  (54) (5)
Trade and other payables  (15,158) (12,491)
The carrying amount of trade and other payables approximates to their fair value. Trade payables and accruals are non-interest bearing 
and generally mature within three months.  
Notes to the financial statements. Year ended 31March 2014
62 iomart Group plc Annual report and accounts 2014
20. CONTINGENT CONSIDERATION
    
  2014 2013
  £’000 £’000
   
 
Contingent consideration due on acquisitions:   
- Skymarket Limited  (32) (232)
- Internet Engineering Limited  - (126)
- Redstation Limited  (1,239) -
 
Total contingent consideration due on acquisitions  (1,271) (358)
21. BORROWINGS
    
  2014 2013
  £’000 £’000
 
Current:   
Obligations under finance leases   (1,038) (1,252)
Bank loans  (18,090) (4,872)
Current borrowings  (19,128) (6,124)
   
 
Non-current:   
Obligations under finance leases   (1,780) (1,720)
Bank loans  (11,936) (3,976)
Total non-current borrowings  (13,716) (5,696)
 
Total borrowings  (32,844) (11,820)
The carrying amount of borrowings approximates to their fair value.
The obligations under finance leases are secured by the related assets and are repayable as follows:
 2014 2013
 Capital Interest Total Capital Interest Total
 £’000 £’000 £’000 £’000 £’000 £’000
Due within one year 1,038 183 1,221 1,252 186 1,438
Due between two and five years 1,277 348 1,625 1,106 391 1,497
Due after more than five years 503 110 613 614 173 787
 2,818 641 3,459 2,972 750 3,722
The Group in its ordinary course of business enters into hire purchase and finance lease agreements to fund or re-finance the purchase 
of computer equipment and software. The lease agreements are typically for periods of 2 to 3 years and do not have contingent rent 
or escalation clauses. The agreements have industry standard terms and do not contain any restrictions on dividends, additional debt 
or further leasing.
The finance lease liability has an effective interest rate of 8.4% (2013: 8.2%). Lease payments are made on a monthly and quarterly 
basis. The future lease obligation of £3,459,000 (2013: £3,722,000) has a present value of £2,710,000 (2013: £2,913,000). 
 
Notes to the financial statements. Year ended 31March 2014
63 iomart Group plc Annual report and accounts 2014
21. BORROWINGS (CONTINUED)
On 4 September 2013, the Group drew down £5m from its existing bank facilities to help fund the purchase of Redstation.
On 27 September 2013 the Group agreed new bank facilities with Lloyds Banking Group totalling £35m with a multi option revolving 
credit facility of £20m and a term loan facility of £15m. This replaced a multi option revolving credit facility of £16m and a term loan of 
£4m which had previously been in place.
On 30 September 2013 the new term loan was drawn down in full and £17.5m was drawn on the new multi option revolving credit 
facility resulting in a total drawn down of £32.5m. From this the amount outstanding on the previous multi option revolving credit facility 
of £10m and the amount outstanding on the previous term loan of £4m were repaid. The remaining £18.5m was used to finance the 
purchase of BTL.
In March 2014, a repayment of £2.5m was made against the new multi option revolving credit facility.
The £20m multi option revolving credit facility may be used by the Group to finance acquisitions and for the issue of guarantees, bonds 
or indemnities. The facility is available until October 2017 at which point any advances made under the revolving credit facility will 
become immediately repayable. In addition, each draw down made under this facility can be for either 3 or 6 months and can either be 
repaid or continued at the end of the period. Interest is charged on this loan at an annual rate determined by the sum of the term loan 
margin, LIBOR and the lender’s mandatory costs. The multi option credit facility margin can fluctuate between 2.50% and 3.50% per 
annum depending on the relationship of net borrowings to reported profits. A one-off arrangement fee of £337,500 was paid when the 
facility was first drawn down and a non-utilisation fee of 45% of the multi option revolving credit facility margin is due on any undrawn 
portion of the facility. The effective interest rate for multi option revolving credit loans in the current year was 4.41% (2013: 6.69%).
The £15m term loan was drawn down in September 2013 for the purpose of acquiring BTL and is repayable in instalments until October 
2017 with two instalments totalling £3m due to be repaid within one year. Interest is charged on this loan at an annual rate determined 
by the sum of the term loan margin, LIBOR and the lender’s mandatory costs. The term loan margin can fluctuate between 2.50% and 
3.50% per annum depending on the relationship of net borrowings to reported profits. There was no arrangement fee associated 
with the term loan when it was drawn down. The effective interest rate for the term loan in the current year was 4.40% (2013: 2.34%).
The future loan obligations of £32,865,000 (2013: £9,657,000) equate to a present value of £23,630,000 (2013: £7,720,000). The capital 
element of the bank loans is £30,026,000 (2013: £8,848,000) and this differs from the net amount drawn down of £30,000,000 (2013: 
£9,000,000) due to an effective interest rate adjustment.
The obligations under the multi option revolving credit facility and term loan facility are repayable as follows:
 2014 2013
 Capital Interest Total Capital Interest Total
 £’000 £’000 £’000 £’000 £’000 £’000
Due within one year 18,090 1,104 19,194 4,872 344 5,216
Due between two and five years 11,936 1,735 13,671 3,976 465 4,441
 30,026 2,839 32,865 8,848 809 9,657
22. PROVISIONS 
The Group has made provision for the reinstatement of certain leasehold properties and after initial measurement, any subsequent 
adjustments to reinstatement provisions will be recorded against the original amount included in leasehold improvements with a 
corresponding adjustment to future depreciation charges.
The directors consider the carrying values of the provisions to approximate to their fair values as they have been discounted.
The movement in the reinstatement provision during the year was as follows:
  2014 2013
  £’000 £’000
Balance at start of the year  (1,097) -
Initial recognition on acquisition of subsidiary  - (105)
Increase in provision  (429) (971)
Unwinding of discount  (40) (21)
Balance at end of year    (1,566) (1,097)
Notes to the financial statements. Year ended 31March 2014
64 iomart Group plc Annual report and accounts 2014
23. OPERATING LEASES
The Group has outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due 
as follows:
 2014 2013
 Land and   Land and
 buildings Other buildings Other
 £’000 £’000 £’000 £’000
Within one year 2,012 288 1,783 210
Between two to five years 6,884 890 6,610 894
After five years 3,233 1,281 5,144 1,504
 12,129 2,459 13,537 2,608
Lease terms for land and buildings
Operating leases do not contain any contingent rent clauses. None of the operating leases contain renewal of purchase options or 
escalation clauses or any restrictions regarding further leasing or additional debt. At 31 March 2014, the total future minimum sub-
lease payments expected to be received under non-cancellable sub-leases were £664,000 (2013: £781,000).
24. SHARE CAPITAL
 Ordinary shares of 1p each
  Number of shares £’000
Authorised   
At 31 March 2012, 2013, and 2014  200,000,000 2,000
Called up, allotted and fully paid   
At 31 March 2012  104,817,404 1,048
Exercise of options  942,472 10
At 31 March 2013   105,759,876 1,058
Exercise of options  321,809 3
Issue of new shares for business acquisition  1,721,321 17
At 31 March 2014  107,803,006 1,078
During the year the Company issued 321,809 (2013: 942,472) ordinary shares of 1p each in respect of the exercise of share options 
by employees for which a net total of £134,583 (2013: £583,587) was received.
On 4 September 2013, 515,464 ordinary shares of 1p each were issued for £2.91 each in order to acquire Redstation and on 30 
September 2013, 1,205,857 ordinary shares of 1p each were issued for £2.90 each in order to acquire BTL, resulting in a merger 
reserve of £4,982,787.
At 31 March 2014 the Company held 983,203 shares (2013: 1,023,453) as own shares in treasury which were accounted for in the Own 
Shares Treasury reserve and had a nominal value of £9,832 (2013: £10,235) and a market value of £2,426,053 (2013: £2,369,294). This 
represents 0.9% (2013: 1.0%) of the issued share capital as at 31 March 2014 excluding own shares.
At 31 March 2014 the Company held 140,773 shares (2013: 140,773) as own shares in the iomart Group plc Employee Benefit Trust 
(“EBT”) which were accounted for in the Own Shares EBT reserve and had a nominal value of £1,408 (2013: £1,408) and a market value 
of £347,357 (2013: £325,889). This represents 0.1% (2013: 0.1%) of the issued share capital as at 31 March 2014 excluding own shares. 
The share capital of iomart Group plc consists of ordinary shares with a par value of 1p. All shares, excluding the shares held by 
the Company in treasury and the shares held by the EBT, are equally eligible to receive dividends and represent one vote at the 
shareholders' meetings of iomart Group plc. All shares issued at 31 March 2014 are fully paid.
 
Notes to the financial statements. Year ended 31March 2014
65 iomart Group plc Annual report and accounts 2014
25. OWN SHARES RESERVES
 Own shares  Own shares Own shares
 EBT  Treasury Total
 £’000 £’000 £’000
    
Opening balance at 1 April 2013 (70)  (506) (576)
Issue of own shares from Treasury for option redemption - 20 20
    
Closing balance at 31 March 2014 (70)  (486) (556)
During the year 40,250 (2013: nil) own shares held in treasury at the carrying value of 46.5p each were issued following the exercise 
of share options by employees for which a net total of £20,869 (2013: £nil) was received. As a consequence, at 31 March 2014 the 
Company held 983,203 shares (2013: 1,023,453) in treasury with a carrying value of £486,685 (2013: £506,609) which were accounted 
for in Own Shares treasury reserve; and 140,773 shares (2013: 140,773) in the EBT with a carrying value of £69,982 (2013: £69,982) 
which were accounted for in the Own Shares EBT reserve.
26. SHARE BASED PAYMENTS
The Group operated the following share based payment employee share option schemes during the year; Enterprise Management 
Incentive scheme, a SAYE sharesave scheme and a number of unapproved schemes. All schemes are settled in equity only and are 
summarised below.
    Required to remain 
 Vesting period Maximum term Performance criteria in employment
Enterprise Management  Up to 3 years 10 years after As set by
Incentive scheme from grant date of grant Remuneration Committee  Yes
Unapproved schemes Up to 3 years  10 years after As set by
 from grant date of grant Remuneration Committee Yes
Sharesave scheme 3 years from  6 months after
 grant  vesting period No Yes
The performance criteria as set by the Remuneration Committee are based on the achievement of annual objectives and continuous 
employment.
During the year, options over 362,059 ordinary shares (2013: 942,472) were exercised and the average market price at the exercise 
dates was 269.3p (2013: 187.5p). Options over 120,000 ordinary shares (2013: 1,570,000) were granted under the unapproved share 
option scheme with an average exercise price of 1.0p (2013: 70.3p) and options over 274,435 ordinary shares (2013: nil) were granted 
under the sharesave scheme with an exercise price of 191.4p.
As disclosed in note 5, a share based payment charge of £1,257,000 (2013: £258,000) has been recognised in the statement of 
comprehensive income during the year in relation to the above schemes. The fair value of the employee services received is valued 
indirectly by valuing the options granted using the Black-Scholes option pricing model, which worked on the following assumptions for 
the options granted in the year:
Grant date 01-Oct-13 01-Oct-13 01-Oct-13 08-Jan-14
Vesting date 31-Mar-15 31-Mar-16 31-Mar-17 08-Jan-17
Variables used    
Share price at grant date 276.0p 276.0p 276.0p 260.0p
Volatility 57% 57% 57% 57%
Dividend yield 0.5% 0.5% 0.5% 0.5%
Number of employees holding options/units  1 1 1 100
Option/award life (years)   10 10 10 3.5
Expected life (years) 3.75 3.75 3.75 3.25
Risk free rate 1.69% 1.69% 1.69% 1.82%
Expectations of meeting performance criteria  50% 50% 50% 100%
Fair value 269.9p 269.9p 269.9p 127.5p
Exercise price per share 1p 1p 1p 191.4p
i) Expected volatility was determined at the date of grant from historic volatility, adjusted for events that were not considered to be reflective of the volatility of the 
share price going forward; and 
ii) Risk free rate was calculated based on the average Bank of England zero coupon yields.
  
Notes to the financial statements. Year ended 31March 2014
66 iomart Group plc Annual report and accounts 2014
26. SHARE BASED PAYMENTS (CONTINUED)
The movement in options during the year in respect of the Company’s ordinary shares of 1p each under the various share option 
schemes are as follows:
 2014 2013
 Weighted  Weighted
 average  average
 exercise price Number of exercise price Number of
 per share (p) share options per share (p) share options
    
Outstanding at start of year 64.60 2,692,679 59.03 2,065,151
Granted 133.47 394,435 70.32 1,570,000
Forfeited 146.10 (50,000) - -
Expired - - - -
Exercised 42.94 (362,059) 61.92 (942,472)
Outstanding at end of year 76.16 2,675,055 64.60 2,692,679
Exercisable at end of year 51.27 1,083,954 52.67 996,013
The movement in options during the year in respect of the Company’s ordinary shares of 1p each, under the JSOP scheme are as 
follows:
 2014 2013
 Weighted  Weighted
 average  average
 exercise price Number of exercise price Number of
 per share (p) share options per share (p) share options
    
Outstanding at start of year - - 55.45 4,750,079
Exercised - - - -
Exercised (swap arrangement) - - 56.74 (4,750,079)
Outstanding at end of year - - - -
Exercisable at end of year - - - -
Summary of share options that were outstanding at the year end:
 Share options – outstanding Share options – exercisable
   Weighted Weighted  Weighted Weighted
 Range of  average average  average average
 exercise  exercise remaining  exercise remaining
 price per Outstanding price per contractual Outstanding price per contractual
 share (p) shares share (p) life (years) shares share (p) life (years)
     
Enterprise management 
incentive scheme 26.5 – 87.5 446,677 66.06 5.0 446,677 66.06 5.0
Unapproved schemes 1.0 – 146.1 1,953,943 62.28 8.2 637,277 40.90 7.0
Sharesave scheme 191.4 274,435 191.4 3.3 - - -
As at end of year  2,675,055 76.16 7.1 1,083,954 51.27 6.2
 
Notes to the financial statements. Year ended 31March 2014
67 iomart Group plc Annual report and accounts 2014
27. RELATED PARTY TRANSACTIONS
Dividends paid to key management (only directors are deemed to fall into this category) were as follows:
   
 2014 2013
 £’000 £’000
Angus MacSween 286 174
Chris Batterham 1 1
Sarah Haran 33 9
Richard Logan 18 1
Ian Ritchie 2 1
Crawford Beveridge - -
Total dividends paid to directors 340 186
The only other related party transactions in the year were the salary payments to key management as disclosed in note 5 and the 
Report of the Board to the Members on Directors’ Remuneration on pages 29 to 31.
28. CONTINGENCIES AND COMMITMENTS
 (a) Contingencies
There were no contingent assets or liabilities as at 31 March 2014 (2013: nil).
(b) Commitments 
Capital expenditure on property, plant and equipment committed by the Group at 31 March 2014 was £482,000 (2013: £5,189,000) 
which relates mainly to network equipment. 
29. RISK MANAGEMENT
The Group finances its operations by raising finance through equity, bank borrowings and finance leases. No speculative treasury 
transactions are undertaken however the Group does from time to time enter into forward foreign exchange contracts to hedge known 
currency exposures. Financial assets and liabilities include those assets and liabilities of a financial nature, namely cash, investments, 
short term receivables/payables and borrowings. 
The carrying amounts of financial assets presented in the statement of financial position relate to the following measurement 
categories as defined in IAS 39:
  
 Loans and receivables
 £’000
2014  
Non-current:  
Lease deposit 2,416
 
Current:  
Trade receivables 3,253
Cash and cash equivalents 13,025
Other receivables 442
Total for category 19,136
2013  
Non-current:  
Lease deposit 2,416
 
Current:  
Trade receivables 2,170
Cash and cash equivalents 11,392
Other receivables 421
Total for category 16,399
Notes to the financial statements. Year ended 31March 2014
68 iomart Group plc Annual report and accounts 2014
29. RISK MANAGEMENT (CONTINUED)
The carrying amounts of financial liabilities presented in the statement of financial position relate to the following measurement 
categories as defined in IAS 39:
  Financial
 At fair value  liabilities
 through profit  measured at Other
 or loss amortised cost  (non-IAS 39) Total
 £’000 £’000 £’000  £’000
2014    
Non-current:    
Finance leasing capital obligations - - (1,780) (1,780)
Bank loan - (11,936) - (11,936)
 
Current:    
Trade payables - (3,733) - (3,733)
Accruals  - (4,268) - (4,268)
Bank loan - (18,090) - (18,090)
Contingent consideration due on acquisitions (1,271) - - (1,271)
Finance leasing capital obligations  - - (1,038) (1,038)
Interest rate swap contract (66) - - (66)
Total for category (1,337) (38,027) (2,818) (42,182)
2013    
Non-current:    
Finance leasing capital obligations - - (1,720) (1,720)
Bank loan - (3,976) - (3,976)
 
Current:    
Trade payables - (3,580) - (3,580)
Accruals  - (3,486) - (3,486)
Bank loan - (4,872) - (4,872)
Contingent consideration due on acquisition (358) - - (358)
Finance leasing capital obligations  - - (1,252) (1,252)
Interest rate swap contract (46) - - (46)
Forward foreign exchange contracts (7) - - (7)
Total for category (411) (15,914) (2,972) (19,297)
Notes to the financial statements. Year ended 31March 2014
69 iomart Group plc Annual report and accounts 2014
29. RISK MANAGEMENT (CONTINUED)
The Group’s financial liabilities per the fair value hierarchy classifications under IFRS 13 ‘Financial Instruments: Disclosures’ are 
described below:
     Total gains
 Fair value    and (losses)
 at 31 March Level Description Inputs used recognised in
Category of  2014 in of valuation for valuation profit or loss
financial liability £’000 hierarchy technique model £’000 
Contingent    Based on probability Management estimate
consideration due on    that vendor will comply on probability and time
acquisition (32) 3 with obligations under scale of vendor
   sale and purchase  complying with
   agreement. obligations. -
Contingent    Using formula specified in Information from the
consideration due on    the purchase agreement draft financial
acquisition (1,239) 3 together with the relevant statements.
   information in the financial 
   statements.  (39)
Interest rate 
swap contracts (66) 2 Interest rate swap contracts  Observable forward exchange
   are not traded in active  rates and interest rates
   markets. Fair valued using  corresponding to the maturity
   observable forward exchange  of the contracts. Effects of
   rates and interest rates  non-observable inputs are not
   corresponding to the maturity  significant for interest
   of the contracts.  rate swaps. (20)
Forward foreign 
exchange contracts - 2 Forward foreign exchange  Observable forward exchange
   contracts are not traded in  rates and interest rates
   active markets. Fair valued  corresponding to the maturity
   using observable forward  of the contracts. Effects of
   exchange rates and interest  non-observable inputs are not
   rates corresponding to the  significant for forward
   maturity of the contracts. foreign exchange contracts. 7
Total fair value (1,337)   Total net losses (52)
There have been no changes to valuation techniques or any amounts recognised through ‘Other Comprehensive Income’. The £20,000 
loss recognised in profit or loss on interest rate swap contracts is included in finance costs and the £7,000 gain recognised in profit or 
loss on forward foreign exchange contracts is included in administrative expenses in the Consolidated Statement of Comprehensive 
Income. As described in Note 11, the contingent consideration in relation to the Redstation acquisition has changed from £1,200,000 
when it was originally estimated to £1,239,000 when the draft financial statements became available. The effects of changing non-
observable inputs on the contingent consideration is described in note 11.
Notes to the financial statements. Year ended 31March 2014
70 iomart Group plc Annual report and accounts 2014
29. RISK MANAGEMENT (CONTINUED)
The reconciliation of the carrying amounts of financial instruments classified within Level 3 is as follows:
Contingent consideration 2014 2013
  £’000 £’000
Balance at start of the year (358) (246)
Acquired through business combination (1,200) (358)
Settled in cash during the year 326 246
Loss recognised in profit of loss under:  
 - Administrative expenses (39) -
Balance at end of year (1,271) (358)
Total amount included in profit or loss on Level 3 instruments under administrative expenses (39) -
Liquidity risk
The Group seeks to manage financial risk to ensure sufficient liquidity is available to meet foreseeable needs and to invest cash safely 
and profitably. The Group reviews its cash flow requirements on a monthly basis.
Interest rates
The interest rate on the Group’s cash at bank is determined by reference to the base rate and the interest rate on the Group’s revolving 
credit and term loan facilities is based on LIBOR plus a margin. An interest rate swap has been put in place in respect of the term 
loan facility. This has the effect of fixing the LIBOR interest rate for the period of the term loan April 2015 to maturity at 2.03%. The 
Group has also entered interest rate swap arrangements in respect of £4m which has been drawn under the multi option credit facility 
which has been fixed at 1.02% until June 2015 and £5m drawn under the multi option credit facility which has been fixed at 1.26% 
from August 2014 for 12 months. The remaining £6m drawn under the multi option credit facility is not covered by interest rate swap 
arrangements. The fair value of the interest rate swap contracts is estimated to be a loss of £20,000 (2013: £46,000) which has been 
recognised in profit or loss for the year.
Currency risk
During the year the Group made payments totalling US$4.1m (2013: US$2.1m) and EUR€0.1m (2013: EUR€0.2m) to acquire domain 
names for its Easyspace division and licences for its Hosting division. During the year, the Group entered into forward exchange 
contracts to hedge its exposure to the US Dollar arising on these purchases but at the year end the Group had no outstanding forward 
contracts in place (2013: $600,000 for a total of £402,000 at an average exchange rate of US$:GBP£ of 1.49:1 over the period to March 
2014). Consequently, the fair value of currency contracts at the year end was £nil (2013: loss £7,000). The Group has no non-monetary 
assets or liabilities denominated in foreign currencies and the level of monetary assets and liabilities denominated in foreign currencies 
is minimal. 
Capital risk
The Group currently has net debt, due to its acquisition activities. The Group’s policy on capital structure is to maintain a level of 
gross cash which the Board considers to be adequate for the size of the Group’s operations which at the moment is no less than 
£10m. Consequently, the Group makes use of both banking facilities and finance lease arrangements to help fund the acquisition of 
companies and capital expenditure in order to maintain that level of gross cash. The Group is committed to paying annual dividends 
depending on the underlying profitability and cash generation of the business. The Group was in compliance with all covenants under 
its banking facility arrangements throughout the reporting period.
Credit risk
The Group provides standard credit terms (normally 30 days) to some of its customers which has resulted in trade receivables of 
£3,363,000 (2013: £2,170,000) which are stated net of applicable provisions and which represent the total amount exposed to credit 
risk. The lease deposits of £2,416,000 (2013: £2,416,000) are held in escrow accounts with the landlord’s main UK bankers and the 
landlord is a major UK plc. The Group’s cash at bank £13,025,000 (2013: £11,392,000) is held within the UK clearing banks.
In respect of trade receivables, lease deposits and cash in bank the directors consider the risk of exposure to credit is minimal due to 
the reasons given above.
 
Notes to the financial statements. Year ended 31March 2014
71 iomart Group plc Annual report and accounts 2014
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF IOMART GROUP PLC
We have audited the parent company financial statements of iomart Group plc for the year ended 31 March 2014 which comprise the 
parent company balance sheet and the related notes. The financial reporting framework that has been applied in their preparation is 
applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 
Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to 
them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility 
to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we 
have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Directors’ Responsibilities Statement, the directors are responsible for the preparation of the parent 
company financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an 
opinion on the parent company financial statements in accordance with applicable law and International Standards on Auditing (UK and 
Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website at www.frc.org.
uk/apb/scope/private.cfm.
Opinion on financial statements
In our opinion the parent company financial statements:
• give a true and fair view of the state of the company's affairs as at 31 March 2014; 
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is 
consistent with the parent company financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our 
opinion:
• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received   
  from branches not visited by us; or
• the parent company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Other matter
We have reported separately on the Group financial statements of iomart Group plc for the year ended 31 March 2014.
Andrew Howie
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Glasgow
27 May 2014
Parent company financial statements. Year ended 31March 2014
72 iomart Group plc Annual report and accounts 2014
BALANCE SHEET
  2014 2013
 Note £’000 £’000
    
 
FIXED ASSETS    
Investments 3 72,797 45,639
  72,797 45,639
CURRENT ASSETS   
Debtors 4 25,036 15,649
Cash at bank and in hand  11,850 10,202
  36,886 25,851
    
CREDITORS: amounts falling due within one year 6 (49,968) (27,175)
 
NET CURRENT LIABILITIES  (13,082) (1,324)
 
TOTAL ASSETS LESS CURRENT LIABILITIES  59,715 44,315
 
CREDITORS: amounts falling after more than one year 7 (12,000) (4,000)
    
NET ASSETS  47,715 40,315
 
CAPITAL AND RESERVES   
Called up share capital 8 1,078 1,058
Own shares 9 (556) (576)
Capital redemption reserve 9 1,200 1,200
Share premium account 9 21,067 20,936
Merger reserve 9 4,983 -
Profit and loss account 9 19,943 17,697
    
TOTAL EQUITY SHAREHOLDERS’ FUNDS  47,715 40,315
    
 
These financial statements were approved by the board of directors on 27 May 2014.
Signed on behalf of the board of directors
Angus MacSween
Director and chief executive officer
iomart Group plc – Company Number: SC204560
The following notes form part of the primary financial statements.
Parent company financial statements. Year ended 31March 2014
73 iomart Group plc Annual report and accounts 2014
“Melbourne have been busy working behind the scenes to help TechHub Manchester 
grow over the past six months as part of working towards my vision of Manchester one 
day becoming a top 5 European start-up destination. Now they’re front of house and 
giving the tech start-up stars of Manchester a great chance to learn from their proven 
expertise and their own business success.”
Doug Ward, Co-Founder & CEO of TechHub Manchester iomart Group plc Annual report and accounts 2014
1. ACCOUNTING POLICIES
The financial statements are prepared in accordance with applicable United Kingdom accounting standards.
Investments
Investments held as fixed assets are stated at cost less provision for any permanent diminution in value. As part of the acquisition 
strategy of the Company, the trade and net assets of subsidiary undertakings at or shortly after acquisition may be transferred at book 
value to fellow subsidiaries. Where a trade is hived across to a fellow subsidiary undertaking, the cost of the investment in the original 
subsidiary, which then becomes a non-trading subsidiary, is added to the cost of the investment in the entity to which the trade has 
been hived. In order to accurately assess any potential impairment of investments, the carrying value of the investment in all companies 
transferred is considered together against the future cash flows and net asset position of those companies which received the trade 
and net assets.
Deferred taxation
Deferred tax is provided in full on timing differences which result in an obligation at the balance sheet date to pay more tax, or a right 
to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law.  Timing differences 
arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are 
included in financial statements. Deferred tax assets are recognised to the extent that it is regarded as more likely than not that they 
will be recovered. Deferred tax assets and liabilities are not discounted.
Leases
Assets obtained under finance leases, which transfer substantially all the risks and rewards of ownership, are capitalised at their fair 
value on acquisition and depreciated over their estimated useful economic lives.  The finance charges are allocated over the period of 
the lease in proportion to the capital element outstanding.
Operating lease rentals are charged to the profit and loss account in equal annual amounts over the lease term.
Financial instruments
Financial assets are recognised in the balance sheet at the lower of cost and net realisable value. Provision is made for diminution in 
value where appropriate.
Income and expenditure on financial instruments is recognised on the accruals basis and credited or charged to the profit and loss 
account in the financial period to which it relates.
Pension scheme arrangements
The Group operates a stakeholder pension scheme and contributes to a number of personal pension schemes on behalf of executive 
directors and some senior employees.  No other post retirement benefits are provided to employees.  Pension costs are charged to 
the profit and loss account in the period to which they relate.
Share-based payment 
All share-based payment arrangements granted after 7 November 2002 that had not vested prior to 1 January 2005 are recognised in 
the financial statements. All share-based payment arrangements in the company are equity settled.  All goods and services received in 
exchange for the grant of any share-based payment are measured at their fair values.  Where employees are rewarded using share-
based payments, the fair values of employees’ services are determined indirectly by reference to the fair value of the instrument 
granted to the employee. This fair value is appraised at the grant date and excludes the impact of non-market vesting conditions (for 
example, profitability and sales growth targets).
All equity-settled share-based payments are ultimately recognised as an expense in the profit and loss account with a corresponding 
credit to “Profit and loss reserve”.  
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best 
available estimate of the number of share options expected to vest.   Estimates are subsequently revised if there is any indication 
that the number of share options expected to vest differs from previous estimates.  Any cumulative adjustment prior to vesting is 
recognised in the current period.  No adjustment is made to any expense recognised in prior periods if share options ultimately 
exercised are different to that estimated on vesting.
Upon exercise of share options the proceeds received net of attributable transaction costs are credited to share capital, and where 
appropriate share premium.
Parent company financial statements. Year ended 31March 2014
75 iomart Group plc Annual report and accounts 2014
2. PROFIT OF PARENT COMPANY
As permitted by Section 408 of the Companies Act 2006, the profit and loss account of the parent company is not presented as part 
of these financial statements.  The parent company’s profit for the financial period after taxation was £2,452,000 (2013: £358,000).
3. INVESTMENTS HELD AS FIXED ASSETS
 Shares in subsidiary undertakings 
 £’000
  
Cost  
At 1 April 2013    47,394
Additions 26,986
Share based payment (note 10) 193
Cost at 31 March 2014 74,573
 
Impairment  
At 1 April 2013 (1,755)
Charge for the year (21)
Impairment at 31 March 2014 (1,776)
 
Net book value of Investments at 31 March 2014 72,797
 
Net book value of Investments at 31 March 2013 45,639
All of the above investments are unlisted.
The following subsidiaries are included in the Company financial statements:
 Ordinary share capital
    Owned by
 Country of   Owned by the subsidiary
 registration   company undertakings
 and operation Activity %  %
 
iomart Limited  Scotland Dormant  100 -
iomart Hosting Limited  Scotland Managed hosting services 100 -
iomart Cloud Services Limited  Scotland Managed hosting services 100 -
EQSN Limited Scotland Non-trading 100 -
iomart Virtual Servers Hosting Limited  Scotland Dormant 100 -
Netintelligence Limited  Scotland Dormant 100 -
iomart Development Limited Scotland Dormant 100 -
iomart Cloud Inc       USA Managed hosting services 100 -
Easyspace Limited England Webservices 100 -
Open Minded Solutions Limited England Webservices 100 -
Backup Technology Holdings Limited England Non-trading 100 -
Backup Technology Limited England Non-trading - 100
Switch Media Limited England Webservices 100 -
Internet Engineering Limited England Webservices 100 -
Redstation Limited England Webservices 100 -
My Documents Limited England Dormant - 100
Switch Media (Ireland) Limited England Webservices - 100
Global Gold Network Limited England Webservices - 100
Global Gold Holdings Limited England Non-trading 100 -
Skymarket Limited England Non-trading 100 -
Rapidswitch Limited England Non-trading 100 -
Titan Internet Limited England Non-trading 100 -
Melbourne Server Hosting Limited England Managed hosting services 100 -
iomart Datacentres Limited  England Non-trading 100 -
Internetters Limited England Dormant - 100
NicNames Limited England Dormant - 100
Web Genie Internet Limited England Non-trading - 100
Parent company financial statements. Year ended 31March 2014
76 iomart Group plc Annual report and accounts 2014
4. DEBTORS
   
 2014 2013
 £’000 £’000
   
Prepayments and accrued income 495 347
Other debtors - 6
Other taxation and social security 344 314
Deferred taxation (note 5) 600 682
Amounts owed by subsidiary undertakings 23,597 14,300
   
 25,036 15,649
 
5. DEFERRED TAXATION
The Company had recognised deferred tax assets and potential unrecognised deferred tax assets as follows:
 2014 2013
 Recognised Unrecognised Recognised Unrecognised 
 £’000 £’000 £’000 £’000
    
Share based remuneration 600 - 682 -
The movement in the deferred tax account during the year was: 
   2014 2013
   £’000 £’000
   
Balance brought forward   682 381
Profit and loss account movement arising during the year   (101) 44
Profit and loss account reserve movement during the year   19 257
Balance carried forward   600 682
The deferred tax asset in relation to share based remuneration arises from the anticipated future tax relief on the exercise of share 
options.
6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 
     
   2014 2013
   £’000 £’000
 
Trade creditors   137 172
Other taxation and social security   55 49
Accruals and deferred income   1,108 654
Contingent consideration   1,271 358
Bank loan   18,000 5,000
Amounts owed to subsidiary undertakings   29,397 20,942
   49,968 27,175
7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 
     
   2014 2013
   £’000 £’000
Bank loan   12,000 4,000
   12,000 4,000
Parent company financial statements. Year ended 31March 2014
77 iomart Group plc Annual report and accounts 2014
8. SHARE CAPITAL
 Ordinary shares of 1p each
 Number of shares £’000
Authorised   
At 31 March 2012, 2013, and 2014 200,000,000 2,000
Called up, allotted and fully paid
At 31 March 2012 104,817,404 1,048
Exercise of options 942,472 10
At 31 March 2013  105,759,876 1,058
Exercise of options 321,809 3
Issue of new shares for business acquisition 1,721,321 17
At 31 March 2014 107,803,006 1,078
During the year the Company issued 321,809 (2013: 942,472) ordinary shares of 1p each in respect of the exercise of share options 
by employees for which a net total of £134,583 (2013: £583,587) was received.
On 4 September 2013, 515,464 ordinary shares of 1p each were issued for £2.91 each in order to acquire Redstation and on 30 
September 2013, 1,205,857 ordinary shares of 1p each were issued for £2.90 each in order to acquire BTL, resulting in a merger 
reserve of £4,982,787.
At 31 March 2014 the Company held 983,203 shares (2013: 1,023,453) as own shares in treasury which were accounted for in the Own 
Shares Treasury reserve and had a nominal value of £9,832 (2013: £10,235) and a market value of £2,426,053 (2013: £2,369,294). This 
represents 0.9% (2013: 1.0%) of the issued share capital as at 31 March 2014 excluding own shares.
At 31 March 2014 the Company held 140,773 shares (2013: 140,773) as own shares in the iomart Group plc Employee Benefit Trust 
(“EBT”) which were accounted for in the Own Shares EBT reserve and had a nominal value of £1,408 (2013: £1,408) and a market value 
of £347,357 (2013: £325,889). This represents 0.1% (2013: 0.1%) of the issued share capital as at 31 March 2014 excluding own shares. 
The share capital of iomart Group plc consists of ordinary shares with a par value of 1p. All shares, excluding the shares held by 
the Company in treasury and the shares held by the EBT, are equally eligible to receive dividends and represent one vote at the 
shareholders' meetings of iomart Group plc. All shares issued at 31 March 2014 are fully paid.
9. STATEMENT OF MOVEMENT IN RESERVES
 Own Own Capital Share  Profit
  shares  shares redemption premium Merger and loss
 EBT  Treasury reserve account reserve account
 £’000 £’000 £’000 £’000 £’000 £’000
      
Profit for the financial period - - - - - 2,452
Dividends - - - - - (1,483)
Share based payments - - - - - 1,257
Deferred tax on share based remuneration - - - - - 19
Issue of own shares from Treasury - 20 - - - 1
Issue of new shares for business acquisition - - - - 4,983 -
Issue of new shares for option redemption - - - 131 - -
 - 20 - 131 4,983 2,246
      
Opening balance (70)  (506) 1,200 20,936 - 17,697
      
Closing balance (70)  (486)   1,200 21,067 4,983 19,943
During the year 40,250 (2013: nil) own shares held in treasury at the carrying value of 46.5p each were issued following the exercise 
of share options by employees for which a net total of £20,869 (2013: £nil) was received. As a consequence, at 31 March 2014 the 
Company held 983,203 shares (2013: 1,023,453) in treasury with a carrying value of £486,685 (2013: £506,609) which were accounted 
for in Own Shares treasury reserve; and 140,773 shares (2013: 140,773) in the EBT with a carrying value of £69,982 (2013: £69,982) 
which were accounted for in the Own Shares EBT reserve.
Parent company financial statements. Year ended 31March 2014
78 iomart Group plc Annual report and accounts 2014
10. SHARE BASED PAYMENTS
For details of share based payment awards and fair values see note 26 to the Group financial statements. The Company accounts 
recognise the charge for share based payments for the year of £1,257,000 (2013: £258,000) by;  
 1) taking the charge in relation to employees of the parent company through the parent company statement of comprehensive 
  income £1,064,000 (2013: £53,000),
 2) recording an increase to its investment in subsidiaries for the amounts attributable to employees of subsidiaries and 
  recording a corresponding entry to the profit and loss account reserve £193,000 (2013: £205,000).
11. RELATED PARTY TRANSACTIONS
The Company has taken advantage of the exemption in Financial Reporting Standard No. 8 “Related Party Transactions” not to disclose 
transactions with wholly owned subsidiaries. Dividends paid to key management (only directors are deemed to fall into this category) 
of the Company have been disclosed in note 27 of the Group financial statements and the only other related party transactions in the 
year were salary payments to directors as disclosed in note 5 of the Group financial statements.
12. CONTINGENCIES AND COMMITMENTS
 (a) Contingencies
  There were no contingent assets or liabilities as at 31 March 2014 (2013: nil).
  (b) Commitments 
  There are no commitments present as at 31 March 2014 (2013: nil).
13. ULITIMATE CONTROLLING PARTY
The Directors’ have assessed that there is no ultimate controlling party.
 
Parent company financial statements. Year ended 31March 2014
79 iomart Group plc Annual report and accounts 2014
NOTICE IS HEREBY GIVEN that the 2014 annual general meeting 
of the Company will be held at Lister Pavilion, Kelvin Campus, West 
of Scotland Science Park, Glasgow G20 0SP on 27 August 2014 at 
2.30 pm for the purpose of considering and, if thought fit, passing 
the following resolutions, of which resolutions 1 to 8 (inclusive) 
will be proposed as ordinary resolutions and resolutions 9 to 10 
(inclusive) will be proposed as special resolutions:-
1 To receive and adopt the financial statements of the Company 
and the directors' and auditors' reports thereon for the year 
ended 31 March 2014.
2 To approve the report of the board to the members on 
directors' remuneration for the year ended 31 March 2014.
3 To reappoint Sarah Haran (who retires by rotation and, 
being eligible, offers herself for re-election) as a director of the 
Company.
4 To reappoint Crawford Beveridge (who retires by rotation and, 
being eligible, offers himself for re-election) as a director of the 
Company.
5 To declare a final dividend for the year ended 31 March 2014 
of 1.75p per share payable on 2 September 2014 to shareholders 
registered at the close of business on 15 August 2014.
6 To reappoint Grant Thornton UK LLP, Chartered Accountants, 
as auditors of the Company and to authorise the directors to fix 
their remuneration. 
7 That, in accordance with section 551 of the Companies Act 
2006 (the "Act"), the directors of the Company (“Directors”) are 
generally and unconditionally authorised to allot shares in the 
Company or grant rights to subscribe for or convert any security 
into shares in the Company (the "Rights") provided that:
(a) the maximum aggregate nominal amount of shares to be 
allotted in pursuance of such authority is an aggregate nominal 
amount equal to £356,066.01; and
(b) this authority shall expire, unless sooner revoked or varied 
by the Company in general meeting, at the conclusion of the 
Company's annual general meeting to be held in 2015 save 
that the Company may, before such expiry, make an offer or 
agreement which would or might require shares to be allotted or 
Rights to be granted after such expiry and the Directors may allot 
shares in pursuance of such offer or agreement notwithstanding 
that the authority conferred by this resolution has expired.
This authority is in substitution for all previous authorities 
conferred on the Directors in accordance with section 551 of the 
Act.
8 That for the purposes of section 551 of the Act, the Directors 
are generally and unconditionally authorised to exercise all 
powers of the Company to allot equity securities (as defined in 
section 560 of the Act) in connection with a rights issue in favour of 
the holders of ordinary shares in the capital of the Company (the 
"Ordinary Shareholders") where the equity securities respectively 
attributable to the Ordinary Shareholders are proportionate 
(as nearly as may be practicable) to the respective numbers of 
Ordinary Shares held by them up to a maximum nominal amount 
of £356,066.01 provided that this authority shall expire, unless 
sooner revoked or varied by the Company in general meeting, 
at the conclusion of the Company's annual general meeting to 
be held in 2015 save that the Company may, before such expiry, 
make an offer or agreement which would or might require equity 
securities to be allotted after such expiry and the Directors may 
allot equity securities in pursuance of any such offer or agreement 
notwithstanding that the power conferred by this resolution has 
expired.
9 That, subject to the passing of resolutions 7 and 8, and in 
accordance with section 570 of the Act, and in place of all existing 
powers, the Directors are generally empowered to allot equity 
securities of the Company (as defined in section 560 of the Act) 
for cash pursuant to the authority conferred by resolutions 7 
and 8 as if section 561 of the Act did not apply to such allotment 
provided that this power shall be limited to:
(a) the allotment of equity securities in connection with an issue 
in favour of holders of ordinary shares of 1 penny each in the 
capital of the Company (the "Ordinary Shares") where the equity 
securities are offered to such holders in proportion (as nearly 
as may be) to the respective number of Ordinary Shares held, 
or deemed to be held, by that shareholder but subject to such 
exclusions or other arrangements as the Directors may deem 
necessary or expedient in relation to fractional entitlements or 
legal or practical problems under the laws of, or the requirements 
of any recognised regulatory body or any stock exchange in, any 
territory;
(b) the allotment of equity securities pursuant to any authority 
conferred upon the Directors in accordance with and pursuant to 
article 41 of the articles of association of the Company; and
(c) the allotment (otherwise than pursuant to (a) and (b) above) 
of equity securities up to an aggregate nominal amount of 
£106,819.80, provided that this authority will expire, unless 
sooner revoked or varied by the Company in general meeting, 
at the conclusion of the Company's annual general meeting to 
be held in 2015, save that the Company may at any time before 
such expiry make an offer or agreement which would or might 
require equity securities to be allotted after such expiry and the 
Directors may allot equity securities in pursuance of such offer 
or agreement notwithstanding that the power conferred by this 
resolution has expired.
10 That the Company be and is hereby generally and 
unconditionally authorised for the purposes of section 701 of the 
Act to make one or more market purchases (within the meaning 
of section 693(4) of the Act) on a recognised investment exchange 
(as defined in section 693(5) of the Act) of Ordinary Shares 
provided that:
Notice of the 2014 Annual General Meeting
80
Annual General Meeting iomart Group plc Annual report and accounts 2014
(a) the maximum number of Ordinary Shares hereby authorised to 
be purchased is 10,681,980, representing 10% of the Company's 
issued ordinary share capital (excluding for these purposes the 
983,203 shares held by the Company in treasury) at the date of 
the notice of this annual general meeting);
(b) the minimum price, exclusive of any expenses, which may be 
paid for any such Ordinary Share is 1p;
(c) the maximum price, exclusive of any expenses, which may 
be paid for any such Ordinary Share shall be not more than 
5% above the average of the middle market quotations for an 
Ordinary Share on the relevant investment exchange on which 
the Ordinary Shares are traded for the five business days 
immediately preceding the date on which such Ordinary Share is 
contracted to be purchased;
(d) unless previously revoked or varied, the authority hereby 
conferred shall expire on the conclusion of the next annual 
general meeting of the Company; and
(e) the Company may make a contract or contracts for the 
purchase of Ordinary Shares under this authority before the 
expiry of this authority which would or might be executed 
wholly or partly after the expiry of such authority, and may make 
purchases of Ordinary Shares in pursuance of such a contract or 
contracts, as if such authority had not expired.
By order of the board  
  
 
Bruce Hall 
Lister Pavilion, Kelvin Campus,
Company Secretary 
West of Scotland Science Park,
25 June 2014  
Glasgow G20 0SP
 
NOTES:
Appointment of Proxy
1 As a member of the Company you are entitled to appoint a 
proxy to exercise all or any of your rights to attend, speak and 
vote at a meeting of the Company.  You should have received a 
proxy form with this notice of meeting.  You can only appoint a 
proxy using the procedures set out in the notes to the proxy form. 
A proxy need not be a member of the Company.
2 To be effective, the proxy form, and any power of attorney or 
other authority under which it is executed (or a duly certified 
copy of any such power or authority), must be deposited at the 
office of the Company’s registrars, Capita Asset Services, PXS, 34 
Beckenham Road, Beckenham, Kent, BR3 4TU, not less than 48 
hours (excluding weekends and bank holidays) before the time 
for holding the meeting (i.e. by 2.30pm on Friday 22 August 2014) 
and if not so deposited shall be invalid.
Entitlement to attend and vote
3 Pursuant to Regulation 41 of the Uncertificated Securities 
Regulations 2001, only those members entered in the Company's 
register of members at:
• 6.00pm on 22 August 2014; or
• if this meeting is adjourned, at 6.00pm on the day two days prior 
to the adjourned meeting, 
shall be entitled to attend and vote at the meeting.
Documents on Display
4 Copies of the service contracts and letters of appointment of 
the directors of the Company will be available:
• for at least 15 minutes prior to the meeting; and
• during the meeting.
Communication
5 Except as provided above, members who wish to communicate 
with the Company in relation to the meeting should do so by post 
to the Company's registered office, details of which are below.  No 
other methods of communication will be accepted.
Address: The Company Secretary, iomart Group plc
Lister Pavilion, Kelvin Campus, West of Scotland Science Park
Glasgow G20 0SP
 
Notice of the 2014 Annual General Meeting
81 iomart Group plc Annual report and accounts 2014
EXPLANATORY NOTES TO THE NOTICE OF ANNUAL GENERAL 
MEETING IOMART GROUP PLC
Ordinary Resolutions
Resolutions 1 to 8 are all to be proposed as ordinary resolutions.  
This means that for each of those resolutions to be passed, more 
than half of the votes cast must be in favour of the resolution.
Resolution 1 – To receive and adopt the financial statements 
for the year ended 31 March 2014 and the directors' and 
auditors' reports thereon
For each financial year the directors of the Company must present 
the audited financial statements, the directors' report and the 
auditors' report on the financial statements to the shareholders 
at an annual general meeting.  
Resolution 2 – To approve the directors' remuneration 
report
Shareholders are asked to approve the directors' remuneration 
report which may be found in the annual report on pages 29 
to 31.  This resolution is an advisory one and no entitlement to 
remuneration is conditional on the resolution being passed.
Resolution 3 and 4 – Re-election of directors
Under article 24 of the Company's articles of association one third 
of the directors are required to retire by rotation at each annual 
general meeting.  Pursuant to those articles, Mrs Sarah Haran 
and Mr Crawford Beveridge are required to retire by rotation at 
this annual general meeting and, being eligible, offer themselves 
for reappointment. The Board is satisfied that the performance 
of Mrs Sarah Haran and Mr Crawford Beveridge continues to be 
effective and demonstrates commitment to their roles with the 
Company including commitment of time for Board meetings and 
other duties required of them.  Accordingly, resolutions 3 and 4 
propose the reappointment of Mrs Sarah Haran and Mr Crawford 
Beveridge.
Brief biographical details of Mrs Sarah Haran and Mr Crawford 
Beveridge are given below.
Sarah Haran 48, appointed 2000; Sarah has spent her career 
implementing and managing operations centres for large 
corporations such as Microsoft Inc, Compaq Inc, Scottish Power 
plc and Prestel Limited. She joined iomart in 1998, from Scottish 
Telecom plc and has been responsible for developing the day-to-
day business processes and technical operations to support the 
Group’s customer base.
Crawford Beveridge, 68, appointed 2011; has over 40 years 
experience in the technology industry, including 16 years at Sun 
Microsystems ("Sun"), most recently as Executive Vice President 
and Chairman, EMEA, APAC and the Americas until retiring in 
January 2010. His business background also includes roles with 
Hewlett-Packard, Digital Equipment Corp., Analog Devices, non-
executive director of Hitachi Global Storage Technologies, a 
subsidiary of Hitachi Ltd and Chief Executive of Scottish Enterprise. 
Current board roles include Chairman of the investment advisory 
board at Scottish Equity Partners and Non Executive Chairman of 
NASDAQ listed Autodesk.
Resolution 5 – To declare a dividend 1.75p per Ordinary 
Share
Subject to the provisions of the Companies Acts, the Company 
may by ordinary resolution declare dividends, but no dividend 
shall exceed the amount recommended by the Board.  The 
Board recommends the payment of a final dividend of 1.75p per 
Ordinary Share, to be payable to shareholders registered at close 
of business on 15 August 2014.
Resolution 6 – Re-appointment and remuneration of 
auditors
The Company is required at each general meeting at which 
financial statements are presented to shareholders to appoint 
auditors who will remain in office until the next such meeting.  
Grant Thornton UK LLP have expressed their willingness to 
continue in office for a further year.  In accordance with company 
law and corporate governance best practice, shareholders are 
also asked to authorise the directors to determine the auditors' 
remuneration.
Resolutions 7 and 8 – Grant of authority to the directors to 
allot shares 
Section 551 of the Companies Act 2006 (the "Act") requires that 
the authority of the directors to allot shares shall be subject to 
the approval of the shareholders in general meeting.  These 
resolutions, if passed, would give the directors general authority 
to allot shares in the capital of the Company.
Resolution 7 would give the directors the authority to allot shares 
up to an aggregate nominal amount of £356,066.01, being 
approximately one-third of the issued ordinary share capital of 
the Company (excluding for these purposes the 983,203 shares 
held by the Company in treasury) as at the date of the notice of 
this meeting.
In line with guidance issued by the Association of British Insurers, 
resolution 8 would give directors the authority to allot shares in 
connection with a rights issue in favour of ordinary shareholders 
up to an aggregate nominal amount equal to £356,066.01 
(representing 35,606,601 Ordinary Shares).  This amount 
represents approximately a further one third of the issued 
ordinary share capital of the Company (excluding for these 
purposes the 983,203 shares held by the Company in treasury) 
as at the date of the notice of this meeting.
There is no present intention to exercise either of the authorities 
sought under these resolutions, which will expire at the conclusion 
of the Company's annual general meeting to be held in 2015.
Notice of the 2014 Annual General Meeting
82 iomart Group plc Annual report and accounts 2014
Special Resolutions
Resolutions 9 and 10 will be proposed as special resolutions.  
This means that for each of those resolutions to be passed, at 
least three-quarters of the votes cast must be in favour of the 
resolution.
Resolution 9 - Disapplication of statutory pre-emption 
rights
Resolution 9 gives authority to the directors of the Company to 
disapply the provisions of section 561 of the Act.  Under that 
section, if the directors wish to allot any of the unissued shares 
for cash the directors must in the first instance offer those 
shares to existing shareholders in proportion to the number of 
shares held by such shareholders.  An offer of this type is called 
a "rights issue" and the entitlement to be offered a new share is 
known as a "pre-emption right".
There may be circumstances, however, where it is in the interests 
of the Company for the directors to allot some of the new shares 
for cash other than by way of a rights issue.  This cannot be 
done under the Act unless the shareholders first waive their pre-
emption rights. There are legal, regulatory and practical reasons 
why it may not always be possible to issue new shares under a 
rights issue to some shareholders, particularly those resident 
overseas.  To cater for this, resolution 9 (at paragraph (a)), in 
authorising the directors to allot new shares by way of a rights 
issue, also permits the directors to make appropriate exclusions 
or arrangements to deal with such difficulties.
Under the Company's articles of association the Board may, 
with the sanction of an ordinary resolution, offer the holders of 
shares the right to receive shares, credited as fully paid, instead 
of cash in respect of the whole (or some part, to be determined 
by the Board) of such dividend or dividends as are specified by 
such resolution.  Paragraph (b) of resolution 9 asks shareholders 
to waive their pre-emption rights in respect of any such issue of 
shares.
Resolution 9 (at paragraph (c)) asks shareholders to waive their 
pre-emption rights, but only for new shares equal to 10 per 
cent. of the Company's issued ordinary share capital (excluding 
for these purposes the 983,203 shares held by the Company 
in treasury) as at the date of the notice of this meeting.  The 
directors will be able to use this power without obtaining further 
authority from shareholders before they allot new shares 
covered by it. However, by setting the limit of 10 per cent., 
the interests of existing shareholders are protected, as their 
proportionate interest in the Company cannot, without their 
agreement, be reduced by more than 10 per cent. by the issue 
of new shares for cash to new shareholders.  If the directors 
wish, other than by rights issue, to allot for cash new shares 
which would exceed this limit, they would first have to ask the 
Company's shareholders to waive their pre-emption rights in 
respect of that proportion of new shares which exceeds the 10 
per cent. ceiling.  
The power given by resolution 9 will, unless sooner revoked 
or renewed by the Company in general meeting, last until the 
conclusion of the next annual general meeting of the Company 
to be held in 2015.
 
Resolution 10 – Authority to purchase the Company's own 
shares
This resolution grants authority to the Company to make 
purchases of up to a maximum of 10% of the issued ordinary 
share capital of the Company (excluding for these purposes the 
983,203 shares held by the Company in treasury) as at the date 
of the notice of this meeting.
In certain circumstances it may be advantageous for the 
Company to purchase its Ordinary Shares.  The directors would 
use the share purchase authority with discretion and purchases 
would only made from funds not required for other purposes 
and in light of market conditions prevailing at the time.  In 
reaching a decision to purchase Ordinary Shares, your directors 
would take account of the Company's cash resources and 
capital, the effect of such purchases on the Company's business 
and on earning per Ordinary Share.
The directors have no present intention of using the authority.  
However, the directors consider that it is in the best interests of 
the Company and its shareholders as a whole that the Company 
should have flexibility to buy back its own shares should the 
directors in the future consider that it is appropriate to do so.
In relation to any buy back, the maximum price per Ordinary 
Share at which the Company is authorised in terms of resolution 
10 to effect that buy back is 5% above the average middle 
market price of an Ordinary Share for the five business days 
immediately preceding the date on which the buy back is 
effected.
The statutory provisions governing buy backs of own shares are 
currently contained in, inter alios, sections 693 and 701 of the 
Companies Act 2006. 
Notice of the 2014 Annual General Meeting
83 iomart Group plc Annual report and accounts 2014 84
Officers and Professional Advisers iomart Group plc Annual report and accounts 2014
Directors
Ian Ritchie CBE, FREng, FRSE, FBCS, CEng, BSc Non executive chairman
Angus MacSween Chief executive officer
Chris Batterham MA, FCA Non executive director 
Crawford Beveridge CBE Non executive director
Sarah Haran Director
Richard Logan BA, CA Director
Secretary 
Bruce Hall BAcc(Hons), CA
Registered office
Lister Pavilion, Kelvin Campus, West of Scotland Science Park, Glasgow G20 0SP
Nominated adviser and broker
Peel Hunt LLP, Moor House, 120 London Wall, London EC2Y 5ET
Principal bankers
Lloyds Banking Group, Bank of Scotland plc, 235 Sauchiehall Street, Glasgow G2 3EY
Solicitors
Shepherd & Wedderburn, 5th Floor, 1 Exchange Crescent, Conference Square, Edinburgh EH3 8UL
Pinsent Masons LLP, 141 Bothwell Street, Glasgow G2 7EQ 
Independent auditors
Grant Thornton UK LLP, 95 Bothwell Street, Glasgow G2 7JZ
Registrars
Capita Asset Services, 34 Beckenham Road, Beckenham, Kent BR3 4TU
Company registration number
SC204560
85 iomart Group plc Annual report and accounts 2014 86
Group Contact Information iomart Group plc Annual report and accounts 2014
iomart Group
0141 931 6400 • info@iomart.com • www.iomart.com
Easyspace
sales@easyspace.com • www.easyspace.com
Rapidswitch
sales@rapidswitch.com • www.rapidswitch.com
iomartcloud
info@iomartcloud.com • www.iomartcloud.com
Melbourne
inbox@melbourne.co.uk • www.melbourne.co.uk
Backup Technology
sales@backup-technology.co.uk • www.backup-technology.com
Redstation
sales@redstation.com • www.redstation.com
Printed by CCB, FSC certified colour printers.This report is printed on Elimental Chlorine Free (ECF) paper, from sustainable 
managed forests. Design by iomart Group plc. All rights reserved. © iomart Group plc 2014. All other trademarks and 
registered trademarks are the property of their respective owners. iomart Group plc Annual report and accounts 2014
“Customers trust us to store thousands of important documents 
such as contracts, invoices and purchase orders. Having our new 
software securely hosted on a private cloud in an iomart UK data 
centre means those customers can relax, knowing that we control 
and support the software for them twenty four hours a day.” 
Graham Light, Director of Documents Online iomart Group plc Annual report and accounts 2014
“Our target is to grow our customer base in the UK, particularly among 
makers of independent games, so we need a reliable and flexible hosting 
partner who can set up new and powerful infrastructure on demand. 
That’s why we chose RapidSwitch because it has the technical and 
management expertise to provision the hardware needed to support 
maximum online gaming experience in the most cost efficient way.” 
Will Lowther, Head of Online at Multiplay iomart Group plc Annual report and accounts 2014
www.iomart.com
iomart Group plc, Lister Pavilion, Kelvin Campus, West of Scotland Science Park, Glasgow G20 0SP