Iomart, the Glasgow-based cloud computing firm, has forecast that its profits for 2012 are on course to come in ahead of market expectations.
In a statement to the London Stock Exchange, it said the year to the end of this month is likely to see pre-tax adjusted profit of around £10.6m.
That would be a rise from £6.9m in the previous year.
It said the firm's growth was coming from expansion of its existing base as well as from acquisitions.
It bought Manchester-based Melbourne Server Hosting in August 2012.
Directors say that pattern is expected to continue as consolidation in the cloud computing sector takes place.
Angus MacSween, the firm's chief executive, said: "Iomart continues to benefit from a compelling mix of a growing market, recurring revenues, sticky customers, good forward visibility and a leading competitive position.
"As a result we remain very confident of further growth in the next financial year and beyond."