How pandemic is boosting sales for this AIM-listed MSP duo

Redcentric and iomart release buoyant trading updates

Two AIM-listed cloud and managed services specialists said there has been no let-up in demand for their services as they released buoyant trading updates.

MSP Redcentric said there had been "material increase in sales opportunities as a result of the COVID-19 pandemic" in the second half of March as it announced that its annual performance had been in line with expectations.

Cloud and hosting provider iomart, meanwhile, said that the crisis "reinforces the journey to the cloud" as it too confirmed its 2020 results are on a par with predictions.

Redcentric flagged up particularly strong demand for increased bandwidth over the last two weeks, including for its secure remote access product.

"As a result, the volume of new recurring revenue contracts signed in March was materially above that seen in previous years," it said, adding that it expects April new sales volumes to be "as anticipated for this time of the year".

"Looking further forward, we anticipate a reduction in sales to new customers and a slowdown in major change projects from existing customers until such time as the COVID-19 crisis is averted," the firm said, however.

Iomart, which expects to report an EBITDA of around £43m on revenues of £112m in its year to 31 March 2020, said it had seen "minimal change to our business levels".

"While uncertainty exists over how calendar 2020 will unfold, with some IT investment decisions likely to be delayed in the short-term, it is clear that technology and the cloud will not lose relevance and indeed the situation we are all facing perhaps reinforces the journey to the cloud," it said.