Just pm me i did this job for couple of years now left it 6 months ago i could advice special places . Would like to give referencess.. =)) Just p.m me ..
As far as performance goes, if your customers are all in Europe, then there would be some delay, although I'm not sure if it would be highly noticeable. The one thing that is important, is that search engines give weight to website's that are hosted in the country that the business is targeting. This is especially true with google. Canadian sites rank better on google.ca, uk sites rank better n google.co.uk, etc. You could host it in the US no problem, but if your customers are in the UK, you would benefit from having your server there as well.