Iomart’s interims show another solid period of profitable, cash generative growth, in line with expectations. Of particular note were the acquisition two companies both specialising in the provision of eCommerce applications (Magento, in particular) which the group plans to use to firmly establish itself as a service provider of choice in this area. We’ve upgraded 2018/19/20 EPS forecasts by 1%/3%/1% and have also raised our target price to 427p, equivalent to 11.0x cal’18 EV/EBITDA. Iomart continues to offer attractive exposure to the structural growth in cloud services in the shape of a highly recurring, profitable and cash generative model that is well placed to grow organically and through acquisition. We remain positive with a Buy rating.