Resurgent content management software developer/web services business Iomart has agreed to shell out £250,000 in cash for domain name registrar Internetters. The soon-to-be-acquired business is one of only 12 accredited registrars in the UK and offers a range of hosting services from which it generated a £2,000 profit from £770,000 of revenue during the year to June. Even more significantly, according to Iomart chairman Nick Kuesnnberg, the deal - when coupled with the purchase of rival NicNames in July 2003 - affords the group a roster of some 35,000 clients. The purchase of Internetters marks the latest phase of Iomart's corporate rehabilitation - its shares having tripled inside six months on the back of a significant upturn in trading. Interim results to 30 September delivered details of a 253% surge in revenue to £2.9m and losses practically halved to £779,000. With management also revealing that the company achieved cash breakeven in September and forecasting annualised revenue of £8m from here on in, the portents appear promising, especially when placed into the context of a £3.5m cash pile. With no analyst forecasts currently available, however, and the group's profitability as yet unproven, the current market cap of £34.3m seems somewhat overcooked in the short term. Reduce/hold.

Iomart	AIM	£37.09m	37.00p	0.00p
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