Investors could get in on the ground floor of a new managed data centres story as Daily Internet (DAIP:AIM) attempts to copy the success of Shares favourite Iomart (IOM:AIM). The company’s finals, due in the next few weeks, should remind the market of the microcap’s growth potential.

The Nottingham-based company currently offers private individuals and small businesses a range of domain name and website hosting services, but it is expanding into higher value cloud IT hosting with dedicated customer servers. The new direction takes the company closer to its ultimate goal of running entire complex IT systems for clients.

Daily Internet only joined Aim in January, ditching a listing on the ISDX, as was PLUS Markets. Between 2010 and 2012 the £5 million cap delivered 22% compound annual revenue growth, with about two-thirds of its sales recurring annually. It has remained loss-making largely due to investment in IT systems and branding, but sales looks set to enjoy a run of even faster growth as its cloud hosting services come on stream.

Daily currently outsources its physical data centre space requirements to Node4, but it has scope to turn its own Stockport base into 60 to 80 rack data centres. It is also likely to expand via acquisitions. It is run by Abby Hardoon, the man behind Host Europe, a business he sold in 2004 for £31.5 million after executing a buy-and-build strategy.

Analysts at Merchant Securities estimate maiden positive earnings before interest, tax, depreciation and amortisation of £14,000 this year to March 2014, but expect the equivalent figure to hit over £400,000 next. However, investors should be aware that this is a high-risk investment that’s likely to involve significant future cash calls. The bid/offer spread is also a risk factor at around 30%.

Shares says: Daily offers plenty of potential upside and we agree with an upbeat consensus that this company is a speculative buy at 4.25p.