REG - Iomart Group PLC - Half Yearly Results
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RNS Number : 9948I Iomart Group PLC 26 November 2025
26 November 2025
Iomart Group plc
("iomart" or the "Group" or the "Company")
Half Yearly Results
iomart (AIM: IOM), the secure cloud services company, reports its half year
results for the six months ended 30 September 2025 (H1 FY26)
Financial Highlights H1 FY26 H1 FY25 FY 25
Total Revenue (£m) 77.7 62.0 143.5
% of recurring revenue(1) 86% 91% 89%
Adjusted EBITDA (£m)(2) 12.9 17.0 34.3
Adjusted EBIT (£m)(3) 2.1 6.6 12.8
Adjusted (loss) /profit before tax (£m)(4) (2.5) 4.3 6.5
Statutory IFRS (loss) /profit before tax (£m) (6.5) 1.0 (53.2)
Basic earnings per share(p) (4.5p) 0.3p (49.0p)
Adjusted diluted EPS(p)(5) (1.9p) 2.6p 3.4p
Cash flow from operations (£m) 8.4 11.1 27.2
Net debt (£m)(6) 109.6 48.1 101.9
Bank revolver loan less cash (£m) 92.4 29.8 83.9
Financial highlights
· Results are in line with the trading update issued on 30 October 2025.
· Group revenue increased 25% to £77.7 million (H1 FY25: £62.0 million),
including £21.7 million from the Atech acquisition.
· Organic revenue declined as anticipated by approximately £6.0 million,
impacted by previously disclosed customer churn in the prior year.
· Adjusted EBITDA of £12.9 million (H1 FY25: £17.0 million), in line with
expectations, reflecting the shift in revenue mix and lower recurring revenues
in legacy services.
· Adjusted loss before tax of £2.5 million (H1 FY25: £4.3 million profit),
impacted by lower EBITDA and higher interest costs related to the Atech
acquisition.
· Net debt of £109.6 million at 30 September 2025 (31 March 2025: £101.9
million), including £97.5 million drawn on the Group's £115 million
Revolving Credit Facility.
Strategic highlights
· Improved customer renewal rates in H1 and consistently positive net order
bookings support future revenue growth.
· Microsoft-connected services now represent approximately 30% of Group revenue
(H1 FY2024: 7%), reflecting successful strategic repositioning, accelerated
with the Atech acquisition, into a high growth segment of the cloud market.
· Atech contributing significantly to revenue and expanding the Group's
Microsoft and managed cyber security capabilities.
· £4 million in annualised cost efficiencies achieved which benefit H2 onwards,
with further savings initiatives underway.
Outlook
· The Board anticipates an improved performance in the second half of the
financial year, and the full year to be within the range of current market
expectations.
For further information:
iomart Group plc Tel: 0141 931 6400
Richard Last, Executive Chair
Scott Cunningham, Chief Financial Officer
Investec Bank PLC (Nominated Adviser and Broker) Tel: 020 7597 4000
Patrick Robb, Virginia Bull
Alma Strategic Communications Tel: 020 3405 0205
Caroline Forde, Hilary Buchanan, Louisa El-Ahwal
Note: Company compiled range is based on known sell-side analyst estimates.
The latest known sell-side analyst estimates for the full year ended 31 March
2026 are:
· Revenue in the range of £159m to £160m;
· Adjusted EBITDA((1)) in the range of £27.7m to £29.2m;
· Adjusted PBT ((2) in the range of £(1.7)m loss to £0.4m
profit; and
· Net Debt (including IFRS 16 finance lease liabilities) in the
range of £97.5m to £107.8m
Notes to editors
(1) Recurring revenue is the revenue that repeats either under long-term
contractual arrangement or on a rolling basis by predictable customer habit. %
of recurring revenue is defined as Recurring Revenue/ Revenue.
(2) Throughout this statement adjusted EBITDA, is earnings before interest,
tax, depreciation and amortisation (EBITDA) before share- based payment
charges, acquisition costs and exceptional non-recurring costs. Throughout
this statement acquisition costs are defined as acquisition related costs and
non-recurring acquisition integration costs.
(3)Throughout this statement adjusted EBIT is earnings before interest and tax
(EBIT) before amortisation charges on acquired intangible assets, share-based
payment charges, acquisition costs and exceptional non-recurring costs.
Throughout these financial statements acquisition costs are defined as
acquisition related costs and non-recurring acquisition integration costs.
(4) Throughout this statement adjusted (loss)/profit before tax is
(loss)/profit before tax, amortisation charges on acquired intangible assets,
share based payment charges, acquisition costs, accelerated write-off of
arrangement fees on bank facilities and exceptional non-recurring costs.
(5) Throughout this statement adjusted diluted earnings per share is earnings
per share before amortisation charges on acquired intangible assets, share
based payment charges, acquisition costs and the taxation effect of these.
(6)Net debt is the total of bank revolver loan, lease liabilities and cash and
cash equivalents. Bank revolver loan less cash is Net Debt excluding lease
liabilities.
(7 ) Net order bookings, represents the gross order value of Annual Recurring
Revenue (ARR) contracted during the period, which will be billed in future
periods adjusted for ARR revenue churn. Churn reflecting lost or reduced
renewal values in the period.
Forward looking statements
This interim announcement contains forward-looking statements, which have been
made by the Directors in good faith based on the information available to them
up to the time of the approval of this report and such information should be
treated with caution due to the inherent uncertainties, including both
economic and business risk factors, underlying such forward-looking
information.
About Iomart Group plc
Iomart Group plc (AIM: IOM) is one of the UK's leading providers of secure
cloud managed services, simplifying the complexities of modern technology for
businesses, with the majority of Group revenue derived from the UK. Our team
of 600+ deliver cutting-edge solutions in cloud infrastructure, modern
workplace management, and managed security services that enable our customers
to innovate, protect, and scale their businesses.
We hold one of the UK's most extensive sets of Microsoft credentials,
including Azure Expert MSP, Eight Solution Designations, 15 Advanced
Specialisations including the new Copilot award and membership in Microsoft's
Intelligent Security Association (MISA). As well as being a top-tier Broadcom
Pinnacle Partner for VMware Cloud and Elite MSP Partner for Commvault. Which
means we can bring the latest technologies in hybrid cloud, data protection,
and cyber resiliency to meet the evolving needs of our customers.
For further information about the Group, please visit www.iomart.com
(http://www.iomart.com/)
Half Year Statement
Introduction
This half year has been one of significant transition and strategic
realignment for the Group, as we refreshed our leadership structure and
sharpened our focus on the distinct strengths of our core business units.
These changes have been implemented with a clear objective: to ensure
accountability, foster specialist expertise and to better serve the diverse
needs of our customers across the portfolio.
Our financial performance for the first half of the year, while a reduction
from the prior year, is in line with the Board's expectations and consistent
with the pre-close trading update issued on 30 October 2025. We have made
tangible progress in strengthening our operational foundations, simplifying
our business model and positioning Iomart for sustainable growth.
We have made important strides in operational efficiency, delivering the
initial phase of our cost optimisation programme and achieving annualised
savings to date of £4m, that will benefit the Group's financial results in
the second half and beyond. Our investment in technology, people and process
improvements is yielding results, as evidenced by strong order bookings,
improved customer retention and the expansion of our capabilities in
high-growth areas such as managed security.
Our Business Model
Our vision remains clear and consistent; to establish Iomart as the UK's
leading provider of secure cloud services for the SME and enterprise
mid-market.
Over recent months, we have strengthened our focus on three core business
units, each now led by dedicated leadership teams. This structure is supported
by a group-wide sales and marketing function serving both new and existing
customers, alongside centralised support functions in finance, procurement,
compliance and HR, to ensure strong governance and efficiency. In addition,
our captive offshore operations in India now provide scalable expertise across
all three business units and central functions, delivering ability to scale
the business but also as a means of delivering substantial improvement in
business efficiency and thereby driving down our costs.
During the past six months, we have implemented several changes within our
Business Units, as outlined below:
· Domain & Mass Hosting (Easyspace)
The Sonassi brand, specialising in eCommerce hosting, has been integrated with
Easyspace and Hosting UK to form a unified domain and hosting business. This
consolidation creates a comprehensive portfolio of end-to-end web hosting
solutions for UK consumers and SMEs. The three brands, Easyspace, Hosting UK
and Sonassi, remain distinct, to reflect differing customer needs and
technical requirements. Some additional customer cohorts from legacy Iomart
self-managed infrastructure brands have also migrated to Hosting UK.
· Iomart Cloud Services
Our largest business unit continues to provide private cloud, backup and data
protection solutions, and data centre services to a diverse customer base
across multiple sectors. These services are underpinned by strong technology
partnerships, including Broadcom Pinnacle Partner for VMware Cloud and Elite
MSP partner for Commvault. Integration efforts have consolidated previous
acquisitions and brands under Iomart, Oriium (data protection centre of
excellence and channel partner) and Rapidswitch (dedicated servers). Earlier
this year, we transitioned Extrinsica operations to Atech, consolidating
Microsoft solution delivery. The remaining approximately £7m (annualised) of
Microsoft-related revenue within Iomart Cloud Services will start to migrate
to Atech in the coming months.
· Atech
Atech is now firmly established as our Microsoft (Azure, Modern Work and AI)
and Security practice, operating under a single management structure and
centre of excellence. It is one of the UK's most accredited Microsoft managed
service partners, enhancing our ability to win new business and serve the
entire Group customer base. Approximately 30% of Group revenue now comes from
Microsoft-connected activities (H1 FY25: 9%).
These changes have delivered greater clarity, focus, and alignment with the
unique characteristics, maturity cycle and technical requirements of each
business unit. The impact of the above revenue reclassification on prior
period segmental reporting is covered in note 12.
Strategy and operational highlights
First half highlights
Beyond the success of creating greater clarity, focus, and alignment across
our business units, notable highlights in the first half of the year include:
· Strong Order Bookings and Sales Transformation
We secured an additional £10m in annual recurring revenue (ARR) bookings in
the first six months, supported by a growing pipeline (H1 FY25: £9.6m). Our
revised sales strategy and operating model are designed to drive
consultancy-led engagements into targeted verticals, and we are now seeing
larger ARR opportunities emerging. To enable this, we have upskilled our sales
team, improving certifications and accreditations across our three strategic
vendor technologies. We have also deployed a new Configure, Price, Quote (CPQ)
system, simplifying quoting and billing processes.
· Expansion of Microsoft & Security Capabilities through Atech
Since acquisition, Atech has secured a further four advanced specialisations,
including in Copilot, making us one of the first UK partners to achieve this.
We have also been awarded two new Solution Partner designations in Private
Cloud and Hybrid Cloud, cementing Atech's position as one of the most
accredited Microsoft partners in the UK.
· Customer Alignment and Operational Simplification
We have improved alignment of legacy brand customer bases to our simplified
business model, ensuring all Iomart Cloud Services customers with managed
services are now centralised into a single Iomart ERP system and service
teams. This integration provides clarity and efficiency, while Rapidswitch
retains a clear focus on the dedicated servers market.
· Technology Advancement
We completed the deployment of the new Broadcom vCloud Director platform,
delivering best-in-class private cloud functionality and strengthening our
technology offering.
· Cost Optimisation Programme
We delivered the initial phase of our cost optimisation programme, achieving
£4m in annualised savings through headcount reductions, infrastructure
decommissioning, procurement efficiencies, and expansion of our captive
offshore operations in India (headcount now at 73 employees), which will
benefit H2 and onwards.
Second half priorities
Our priorities for the second half of the year are centred on accelerating
profitable revenue growth, improving operational efficiency and strengthening
our financial position. The key areas of focus are:
· Revenue Growth Initiatives
We aim to position the Group strongly for an improved starting point, in terms
of monthly recurring revenue, as we enter FY27. Key actions include:
o Onboarding managed security customers: Accelerate the acquisition and
integration of managed security clients, leveraging Atech's Microsoft and
security expertise to capture high-margin recurring revenue streams.
o Productisation of AI Services: Formalise and launch our AI-driven service
offerings, creating packaged solutions that address customer needs for
automation, optimisation and intelligent security.
o Maximising Indirect Channel sales via Oriium: Optimising potential of our
channel partner network through the Oriium brand and partnerships with the IT
channel.
o Leveraging Broadcom Pinnacle Partner status: Differentiate our private cloud
hosting capabilities by capitalising on our Elite Partner status, positioning
Iomart as a trusted provider for VMware Cloud solutions.
o Incremental customer growth in data centre services: Target new customers for
colocation and dedicated hosting services, particularly within Rapidswitch, to
enhance utilisation and margin contribution.
· Cost Optimisation and Operational Efficiency
We will continue our rolling programme of cost optimisation, with a focus on:
o Reducing structural data centre costs: over the medium-term address fixed cost
structures through consolidation of facilities and improved energy efficiency
factors and utilisation rates.
o Driving efficiency across operations: Implement process & system
improvements (including AI and automation), alongside investing in our Indian
team to allow the business to scale efficiently, while maintaining service
quality.
· Financial Position
Our focus is to manage effectively our financial position through:
o Positive cash generation and the delivery of strong cash flow in H2.
o Continued cost optimisation and disciplined working capital management.
o Maintaining financial flexibility to ensure the Group is well-positioned to
invest in growth initiatives while reducing net debt leverage levels.
Together, these actions will enable Iomart to enter FY27 with a stronger
revenue base and a more robust financial position, setting the foundation for
sustainable growth.
Market Update
The UK cloud computing market has continued to demonstrate growth over the
past six months, underpinned by accelerating digital transformation,
heightened security requirements and the integration of AI-driven
capabilities. Public cloud adoption remains dominant, with Microsoft Azure
maintaining a leading position in the UK enterprise segment. However, hybrid
and multi-cloud strategies remain a prevailing model, as organisations seek
flexibility, resilience and compliance with data sovereignty regulations.
Key market dynamics and how we are responding:
· Hybrid cloud adoption: UK businesses increasingly operate across both public
and private cloud environments, driven by regulatory compliance, cost
optimisation and the need for operational resilience. Persistent cost
challenges, including energy and infrastructure expenses, are accelerating
migration away from on-premise systems toward cloud-native and hybrid
solutions. This is our heritage. We have proven capabilities in managing this
complex landscape for a range of UK businesses.
· AI and Automation: Demand for AI-enabled services is reshaping cloud
strategies, with enterprises prioritising platforms that deliver automation,
predictive analytics and enhanced security. Through our recent innovation in
this space, we are launching a range of offerings in H2 to make our products
in this space more easily accessible.
· Security and Compliance: Rising cyber threats and sector-specific regulations
are reinforcing the need for cyber consultancy, incident response managed
cyber security services and zero-trust architectures. We have further expanded
our 24/7 Security Operations Centre (SOC) and cyber advisory offerings,
strengthening our capabilities in cyber security.
We have seen customers adopt a more conservative approach to technology
investment, prioritising essential services such as security, compliance and
cost optimisation over discretionary projects. Outsourcing to managed service
providers delivers capability to reduce capital expenditure and improve cost
control. Iomart is offsetting margin pressure in commoditising areas such as
licence consumption by accelerating our drive to ensure differentiation
through high-value offerings such as security and managed services, optimising
customer costs and compliance.
We are now able to offer hybrid solutions, combining Microsoft public cloud
services (Azure infrastructure, Modern Work, and Security) expertise, along
with our strong heritage in private cloud infrastructure, making us well
positioned in the market.
Financial Review
Revenue
For the six months ended 30 September For the year ended 31 March
2025 2024(1) 2025(1)
£'000 £'000 £'000
Iomart Cloud Services 44,504 49,445 97,059
Atech 25,565 4,350 30,188
Domain and Mass Hosting (Easyspace) 7,676 8,155 16,213
Total revenue 77,745 61,950 143,460
(1)see note 12 for reclassification of historic periods.
Overall revenue from our operations was £77.7m (H1 2025: £62.0m) with a high
level of recurring revenue at 86% (H1 2025: 91%). We remain focused on
retaining our recurring revenue business model with the combination of
multi-year contracts and payments in advance providing us with good revenue
visibility. The Atech acquisition reduced the percentage of recurring revenue
due to a higher proportion of consultancy activity as we support customers in
their digital migrations and security positioning.
Group revenue includes a full six months of revenue from Atech, being £21.7m,
growth of 16% on the comparable period. Excluding the impact of acquisitions,
the remaining pre-existing Group experienced a revenue decline of around
£6.0m, reflecting the accelerated churn of customers from legacy self-managed
infrastructure, plus some private managed cloud customers, in the prior year
which impacted the monthly run rate entering into this current financial
year. A key success in the current period has been the consistent delivery
of positive net order bookings driven by a combination of a good level of new
orders bookings of £10m annual recurring revenue (H1 2025: £10m) and an
improvement in customer renewal rates allowing achievement of net order
bookings(7) of £4.5m ARR (H1 2025: £0.3m).
Adjusted EBITDA
For the year ended 31 March
For the six months ended 30 September
2025 2024(1) 2025(1)
£'000 £'000 £'000
Iomart Cloud Services 9,091 15,054 27,460
Atech 2,581 (173) 3,067
Domain and Mass Hosting (Easyspace) 3,886 4,513 8,562
Group overheads (2,648) (2,442) (4,777)
Total Adjusted EBITDA 12,910 16,952 34,312
(1)see note 12 for reclassification of historic periods.
Adjusted EBITDA((2)) was £12.9m, compared to £17.0m in the first half of the
previous year, reflecting lower recurring revenues within the traditional
private cloud and data centre services which also heavily impacts utilisation
of our fixed cost infrastructure, alongside a shift in the Group's mix towards
higher-growth, but lower-margin, Microsoft services. Cost efficiency
improvements of £4m on an annualised basis have been achieved, which will
benefit the second half and beyond.
Trading review by segment
Iomart Cloud Services
Revenue for Iomart Cloud Services in the first half of the year was £44.5m,
compared to £49.4m in the same period last year (as reclassified),
representing a decrease of £4.9m. This reduction reflects lower contributions
from both managed services, which declined by 8%, and self-managed
infrastructure, which fell by 24%. The largest element of this decline stems
from the lower recurring revenue run-rate at the start of the year, following
the higher customer churn experienced in the prior period. Non-recurring
revenue remained stable at £5.2m (H1 FY25: £5.3m)
Segmental EBITDA (before share-based payments, acquisition costs and central
overheads) of £9.1m represents a drop of £6.0m from the first half of FY25
or £3.3m from the second half of FY25. The trend in margin performance over
the last several years has had many moving parts, including changes in revenue
mix, timing of inflationary price adjustments and the well documented energy
crisis. Revenue mix remains a feature in the period, with lower margin revenue
associated with complex managed cloud services (including greater use of Azure
public cloud) increasing, while higher margin self-managed infrastructure
revenue decreases alongside lower utilisation of our fixed cost
infrastructure. This mix shift towards public cloud creates proportionately
lower capex requirements. The cost efficiencies already undertaken and our
rolling efficiency programme is focussed on this area of the business.
The following is the disaggregation of Iomart Cloud Services revenues of
£44.5m (H1 2025 reclassified: £49.5m). Iomart Cloud Services shares the data
centre estate and fibre network infrastructure and associated support teams as
an important part of the delivery of our recurring revenue services.
For the six months ended 30 September For the year ended 31 March
2025 2024(1) 2025(1)
Revenue by operating segment £'000 £'000 £'000
Cloud managed services 33,043 35,901 71,869
Self-managed infrastructure 6,230 8,232 15,241
Non-recurring 5,231 5,312 9,949
Total revenue 44,504 49,445 97,059
(1)see note 12 for reclassification of historic periods.
Cloud managed services (recurring revenue)
Cloud managed services includes the provision of fully managed, complex,
bespoke and resilient solutions involving private, public and hybrid cloud
infrastructure.
Revenues in this area reduced by 8% to £33.0m (H1 2025 reclassified:
£35.9m). The underlying reduction from the prior period is a feature of a
lower starting monthly recurring value as we started the financial year and
also some delayed billing timing on the orders secured. Within this area, we
have seen encouraging growth in Microsoft solutions, including Azure and
Modern Work, which generated approximately £3.8m revenue in the H1 period.
These activities are expected to transition to Atech during H2, depending on
specific customer arrangements.
Self-managed infrastructure (recurring revenue)
Self-managed infrastructure serves customers who prefer to source compute
power and connectivity through dedicated servers, managing these directly.
This segment represents a lower-growth area of the market and is most exposed
to migration towards public cloud, given its transactional nature and reliance
on customers' own technical capabilities. Revenue in the first half declined
to £6.2m, a reduction of £2.0m compared to the prior year period, but only
£0.8m lower than H2 FY25, indicating a slowing rate of decline. Retention
rates have improved within the long tail of the customer base, and the
Rapidswitch brand continues to demonstrate resilience and stability, supported
by our Maidenhead data centre. We have also realigned smaller legacy brands,
including Sonassi, into our Domain and Mass Hosting segment to enhance
customer experience and retention.
Non-recurring revenue
Non-recurring revenue has been stable at £5.2m (H1 2025: £5.3m) which
relates primarily to hardware and software reselling plus professional
services. These activities often serve as an entry point for new customers,
creating opportunities to expand into higher-value recurring services.
Atech
Atech delivered revenue of £25.6m for the six months ended 30 September 2025.
As previously noted, we completed the transition of Extrinsica operations into
Atech during the period, consolidating our Microsoft-focused solutions under a
single business unit. Extrinsica contributed £4.3m of revenue in the prior
period and has maintained a stable profile since, supported by strong renewal
levels as contracts are novated between legal entities.
On a pro forma basis, assuming Atech had been part of the Group from 1 April
2024, revenue for the comparable six-month period last year would have been
£23.0m. The moderation in growth reflects a weaker contribution from
non-recurring revenue and the timing of some larger order bookings, with
initial billing expected to commence in the second half.
Atech's EBITDA (before share-based payments, acquisition costs and central
overheads) was £2.6m, representing 10% of revenue, compared to £3.2m (13%)
in the second half of FY25 (as reclassified). The inclusion of Extrinsica,
which was close to break-even on its £4.3m revenue, has diluted margins but
provides a strong platform for improvement as part of the enlarged Microsoft
Centre of Excellence. During the period, we navigated a more challenging
market pricing environment for M365 licensing. While we retained and grew
revenue in this area, margins were lower overall. Nevertheless, our
participation in this market is important, as it establishes customer
relationships that enable us to upsell more value-added services. We have
also invested in maturing Atech's product function to support scalable growth
and expanded our Security Operations Centre (SOC), strengthening our
capabilities in cyber security.
The table below shows Atech's revenue split between recurring and
non-recurring activities:
For the six months ended 30 September For the year ended 31 March
2025 2024(1) 2025(1)
Revenue by operating segment £'000 £'000 £'000
Recurring 20,221 4,081 23,739
Non-recurring 5,344 269 6,449
Total revenue 25,565 4,350 30,188
(1)see note 12 for reclassification of historic periods.
Atech (recurring revenue)
Recurring revenue within Atech continues to grow, reaching £20.2m for the
six-month period. While growth has been slower in recent months, this is
primarily due to the timing of larger order bookings and associated billing
schedules, which will benefit the second half.
Atech (non-recurring revenue)
Atech non-recurring revenue was £5.3m, representing 21% of total Atech
revenue. The largest component remains consultancy projects in cyber security,
including a significant engagement with a long-standing financial services
client, which contributed £3.0m revenue during the period. This customer has
provided repeat business over several years, and we expect the current scope
of work to renew in the coming months. Hardware and software reselling
activity from existing customers was subdued between May and July,
contributing to the overall decline in non-recurring revenue compared to the
prior period.
Domain and Mass Hosting (Easyspace)
The Domain and Mass Hosting segment, which now incorporates the Sonassi brand
alongside Easyspace and Hosting UK, recorded revenue of £7.7m for the six
months ended 30 September 2025, compared to £8.2m in the prior period (as
reclassified), representing a modest decline of 6%. This reduction was
primarily driven by higher churn within the Sonassi brand, while the Easyspace
and Hosting UK brands maintained more stable performance.
Segment EBITDA (before share-based payments, acquisition costs and central
overheads) was £3.9m, equating to 51% of revenue, compared to £4.5m (55% of
revenue) in the prior period. The transfer of Sonassi and certain other
customer cohorts into this segment introduces higher-margin activities.
The global domain name and mass-market hosting sector continues to expand,
underpinned by the growing importance of online presence and e-commerce across
all areas of the economy, including the small and micro-business community
served by this division. While the market is dominated by a small number of
large global operators, we remain committed to reinvigorating this segment.
Our ambition is to reverse the historic trend of small, consistent revenue
declines and return to modest growth, supported by strong renewal rates across
all three brands. We recognise that Sonassi requires targeted investment to
improve retention and enhance customer experience, and this work is already
underway.
Group overheads
Group overheads, which are not allocated to segments, include the cost of the
Board, certain professional fees, all the running costs of the headquarters in
Glasgow, and Group led functions such as human resources, marketing, finance
and design. Group overheads saw an increase of £0.2m to £2.6m (H1 2025:
£2.4m) with no material individual variances on the prior period.
Adjusted EBIT
For the year ended 31 March
For the six months ended 30 September
2025 2024 2025
£'000 £'000 £'000
Adjusted EBITDA 12,910 16,952 34,312
Depreciation (7,109) (7,432) (14,730)
Amortisation (non M&A) (3,657) (2,968) (6,757)
Adjusted EBIT 2,144 6,552 12,825
The Group depreciation charge of £7.1m (H1 2025: £7.4m) fell by £0.3m in
the period which as a percentage of recurring revenue is 10.5% (H1 2025:
13.1%). This is the fourth year in a row in which we have seen this percentage
value drop and was accelerated in the current period given the very limited
CAPEX needs of the Atech business.
The Group charge for amortisation of intangibles, excluding amortisation of
intangible assets resulting from acquisitions ("amortisation of acquired
intangible assets"), of £3.7m (H1 2025: £3.0m) includes £1.8m in relation
to the Broadcom VMware software license arrangements which increased in the
period following an extension of the licence pool.
The Group's adjusted EBIT decreased by £4.4m to £2.1m (H1 2025: £6.6m)
which in adjusted EBIT margin terms translates to 2.7% (H1 2025: 10.6%). We
are focused on delivering an improvement in margin in H2 via our rolling cost
efficiency programmes and growing higher margin value added services such as
managed cyber security.
Adjusted (loss)/ profit before tax
For the year ended 31 March
For the six months ended 30 September
2025 2024 2025
£'000 £'000 £'000
Adjusted EBIT 2,144 6,552 12,825
Net bank & other interest (3,734) (1,821) (5,442)
Accelerated write off of arrangement fees on bank facility (319) - -
Finance lease interest (594) (466) (928)
Adjusted (loss)/profit before tax (2,503) 4,265 6,455
Finance costs have increased by £2.3m to £4.3m (H1 2025: £2.3m) reflecting
the funding of the Atech acquisition on 1 October 2024. After deducting the
charges for depreciation, amortisation (excluding the amortisation of acquired
intangible assets) and finance costs from the adjusted EBITDA, the adjusted
profit before tax for the period reduced by £6.8m to £2.5m loss (H1 2025:
£4.3m profit).
Statutory IFRS (loss)/profit before tax
The measure of adjusted profit before tax is a non-statutory measure, which is
commonly used to analyse the performance of companies where M&A activity
forms a significant part of their activities.
A reconciliation of adjusted profit before tax to Statutory IFRS profit after
is shown below:
For the six months ended 30 September For the year ended 31 March
2025 2024 2025
£'000 £'000 £'000
Total adjusted (loss)/ profit before tax (2,503) 4,265 6,455
Amortisation of acquired intangible assets (2,330) (1,613) (4,902)
Acquisition costs - (1,151) (1,674)
Share based payments (77) (514) (198)
Administrative expenses - exceptional non-recurring costs (1,561) - -
Goodwill impairment - - (52,900)
Statutory IFRS (loss)/profit before tax (6,471) 987 (53,219)
The larger adjusting items in the current period are:
· non-cash charges for the amortisation of acquired intangible assets
of £2.3m (H1 2025: £1.6m), increasing by £0.7m due to intangible assets
established for customer relationships and brand on the acquisition of Atech
on 1 October 2024; and
· during the period the Group incurred £0.6m of exceptional
administrative expenses relating to the change of Chief Executive Officer.
Remaining exceptional costs related to the cost efficiency, integration and
corporate programmes.
After deducting the charges for share based payments, the amortisation of
acquired intangible assets, acquisition costs and exceptional non-recurring
costs, the reported loss before tax is £6.5m (H1 2025: £1.0m profit).
Taxation and profit for the period
There is a tax credit in the period of £1.4m (H1 2025: £0.6m charge),
represented by a combination of a movement for deferred taxation in the
period of £0.8m (H1 2025: credit of £0.1m) and a corporation tax credit on
the loss in the period. There is no current tax charge in the period (H1 2024:
£0.7m). The adjusted effective tax rate, after adjusting for share based
payments and acquisition costs, is 22% (H1 2025: 28%). After deducting the
tax credit/(charge) from the loss before tax, the Group has recorded a loss
for the period from total operations of £5.1m (H1 2025: £0.4m profit).
Earnings per share
Adjusted diluted earnings per share, which is based on (loss)/profit for the
period attributed to ordinary shareholders before share based payment charges,
amortisation of acquired intangible assets and acquisition costs.
Non-recurring exceptional administrative expenses and the tax effect of these
items, was 1.9p loss per share (H1 2025: 2.6p profit per share).
The measure of adjusted diluted earnings per share as described above is a
non-statutory measure that is commonly used to analyse the performance of
companies where M&A activity forms a significant part of their activities.
Basic earnings per share from continuing operations was 4.5p loss per share
(H1 2025: 0.3p profit per share). The calculation of both adjusted diluted
earnings per share and basic earnings per share is included at note 5.
Cash flow
The Group generated cash from operations (before exceptional costs) in the
period of £9.7m (H1 2025: £11.6m) with an adjusted EBITDA conversion to cash
ratio(7) in the period of 75% (H1 2025: 68%). The first half year typically
has a lower conversion ratio. Cash payments for corporation tax in the period
were £0.3m (H1 2025: £1.0m) and cash payments associated with exceptional
items were £1.4m (H1 2025: £0.5m), resulting in positive net cash flow from
operating activities in the period of £8.0m (H1 2025: £10.0m).
Expenditure on investing activities of £5.1m (H1 2025: £8.5m) was incurred
in the period. £3.6m (H1 2025: £4.0m) was incurred on the acquisition of
property, plant and equipment, principally to provide specific services to our
customers, £1.5m (H1 2025: £1.2m) incurred in respect of development costs.
During the first half of the year, net cash used in financing activities was
£10.9m (H1 2024: £7.1m (excluding any Atech timing funding only related
items)). All shares issued in the current period under share options were
issued at nominal value. In the current period we repaid £2.0m of lease
liabilities (H1 2025: £2.2m) and paid £3.4m (H1 2025: £1.5m) of finance
charges. A total of £5.2m (H1 2025: £2.6m) was paid in relation to software
license arrangements, principally annual instalments on the Broadcom VMware
partnership commitments during the period. In the current period, M&A
related payments were limited to £0.4m final contingent consideration
payments on the Accesspoint acquisitions (H1 2025: £0.7m between the
Extrinsica and Accesspoint acquisitions). No dividend payment was made in the
period (H1 2025: £3.4m). A £0.5m drawdown was made in the period from the
revolving credit facility of which £0.4m was used to fund fees associated
with the June 25 bank refinancing. As a result, cash and cash equivalent
balances at the end of the period was £5.1m (30 September 2024: £10.2m
(excluding any Atech timing funding only related items)).
Net Debt
The analysis of the net debt is shown below:
For the six months ended 30 September For the year ended 31 March
2025 2024 2025
£'000 £'000 £'000
Bank revolver loan 97,500 97,000 97,000
Less: cash and cash equivalents (5,088) (67,212) (13,088)
Bank revolver loan less cash and cash equivalents 92,412 29,788 83,912
Lease liabilities 17,233 18,282 18,006
Net Debt 109,645 48,070 101,918
At 30 September 2024 we had the unusual situation of holding £67.2m of cash
and cash equivalents which included the £57m of drawn funds for the Atech
acquisition which completed on the following day. Excluding this transaction,
cash and cash equivalents were £10.2m, reflecting normal operating liquidity
parameters.
In June 2025, we secured a new £115m Revolving Credit Facility (RCF) from a
syndicate comprising The Royal Bank of Scotland plc, HSBC UK Bank plc, and
Clydesdale Bank plc (trading as Virgin Money). This facility, which extends to
30 June 2027, provides long-term funding certainty and includes covenants
limited to debt cover and interest cover, aligned with the Group's current
leverage position and strategic objectives. At current leverage levels, the
bank margin under the new RCF is 3.0% above SONIA, with a margin ratchet
mechanism that reduces interest costs as the Group deleverages.
Following the Atech acquisition, the net debt position represents 3.65x our
adjusted last 12 months EBITDA, or 3.1x excluding IFRS 16 lease liabilities of
£17.2m. While this is a higher leverage level than historically, it reflects
a deliberate investment in strategic growth and fundamentally repositioning
the Group. Importantly, we have a clear and actionable plan to reduce
leverage:
· Positive H2 cash generation expected, supported by improved trading,
absence of annual Broadcom payments which are paid in the first month of each
financial year, and lower exceptional items.
· Cost optimisation programme, already delivering annualised savings of
£4m.
· Continued focus on operational efficiency and exploring opportunities
to generate surplus cash as we refine strategic plans and business models.
The Board and management team remain fully committed to deleveraging the
business and maintaining a robust financial position. Our liquidity, covenant
headroom and proactive approach to delivering cost efficiency provide
confidence that the Group is well positioned to manage its capital structure
effectively.
Recruitment of new CEO
Securing the right leadership is critical to driving the next phase of growth.
This process will prioritise candidates with proven experience in scaling
technology businesses, delivering sustainable profitability and navigating
complex market transitions.
Outlook
The Board anticipates an improved performance in the second half of the
financial year, and the full year to be within the range of current market
expectations, supported by ongoing positive order bookings, reduced churn
within the self-managed infrastructure segment and the achievement of £4
million in annualised cost reductions. Further efficiency savings are being
progressed as well as new focussed sales initiatives.
Condensed Consolidated Statement of Comprehensive Income (unaudited)
Notes 30 September 2025 30 September 2024 31 March 2025
£'000 £'000 £'000
Revenue 77,745 61,950 143,460
Cost of sales (42,336) (28,553) (72,997)
Gross profit 35,409 33,397 70,463
Administrative expenses (37,233) (30,123) (117,312)
Operating (loss)/profit (1,824) 3,274 (46,849)
Analysed as:
Adjusted EBITDA 12,910 16,952 34,312
Share-based payments (77) (514) (198)
Acquisition costs - (1,151) (1,674)
Non-recurring administrative expenses 3 (1,561) - -
Depreciation 8 (7,109) (7,432) (14,730)
Amortisation acquired intangible assets 7 (2,330) (1,613) (4,902)
Amortisation other intangible assets 7 (3,657) (2,968) (6,757)
Goodwill impairment charge . - (52,900)
Net Finance costs 4 (4,647) (2,287) (6,370)
(Loss)/profit before taxation (6,471) 987 (53,219)
Taxation 6 1,404 (603) (1,898)
(Loss)/profit for the period from continuing operations (5,067) 384 (55,117)
Other comprehensive income
Exchange differences on translating foreign operations (49) (65) (31)
Fair value (gains)/losses on cashflow hedges (92) - (84)
Other comprehensive expense for the period/year (141) (65) (115)
Total comprehensive (loss)/income for the period attributable to equity (5,208) 319 (55,232)
holders of the parent
Condensed Consolidated Statement of Financial Position (unaudited)
30 September 2025 31 March 2025
Note £'000 £'000
ASSETS
Non-current assets
Goodwill and intangible assets 7 139,823 144,305
Trade and other receivables 111 111
Property, plant and equipment 8 57,037 59,515
196,971 203,931
Current assets
Cash and cash equivalents 9 5,088 13,088
Trade and other receivables 38,178 36,833
Current tax asset 1,462 842
44,728 50,763
Total assets 241,699 254,694
LIABILITIES
Non-current liabilities
Trade and other payables (8,573) (15,210)
Non-current borrowings 10 (112,051) (112,132)
Provisions (2,502) (2,486)
Deferred tax liability (8,641) (10,084)
(131,767) (139,912)
Current liabilities
Contingent consideration - (364)
Trade and other payables (48,847) (48,012)
Current borrowings 10 (2,682) (2,874)
(51,529) (51,250)
Total liabilities (183,296) (191,162)
Net assets 58,403 63,532
EQUITY
Share capital 1,130 1,128
Own shares (70) (70)
Capital redemption reserve 1,200 1,200
Share premium 22,500 22,500
Other reserves 19,874 19,938
Retained earnings 13,769 18,836
Total equity 58,403 63,532
The following notes form part of these consolidated financial statements.
Condensed Consolidated Statement of Cash Flows (unaudited)
Period Ended 30 September 2025 Period Ended 30 September 2024 Year Ended 31 March 2025
£000 £000 £000
Cashflows from operating activities:
Loss before tax (6,471) 987 (53,219)
Non-cash and other movements in operating assets and liabilities included in
profit before tax:
Net finance costs 4,647 2,287 6,370
Depreciation 7,109 7,432 14,792
Amortisation 5,988 4,581 11,659
Impairment(1) - - 52,900
Share based payments 77 514 198
Research and development tax credit (267) (224) (532)
Unrealised Foreign exchange (gain)/loss (12) (340) (76)
Other non-cash items 94 - -
Non-cash Exceptional costs - - (39)
Exceptional items - operating cash flow impact 145 643 (361)
Movement in trade receivables (1,346) 47 419
Movement in trade payables (1,606) (4,877) (4,899)
Cash flow from operating activities 8,358 11,050 27,212
Taxation paid (342) (1,036) (1,866)
Net cash flow from operating activities 8,016 10,014 25,346
Cash flow from investing activities
Purchase of property, plant and equipment (3,635) (4,049) (8,252)
Capitalisation of development costs (1,505) (1,217) (2,907)
Purchase of intangible assets - - (87)
Payment for subsidiary acquisitions, net of cash acquired - - (48,465)
Payment of contingent consideration - (680) (2,500)
Net cash used in investing activities (5,140) (8,505) (62,211)
Cash flow from financing activities
Issue of shares 2 2 4
Drawdown of bank loans 500 57,000 57,000
Refinancing costs (405) - -
Lease capital repayments (2,037) (2,189) (4,352)
Payments for long-term licence agreements (5,171) (2,559)(1) (2,559)
Repayment of debt acquired on acquisition (364) - (6,244)
Finance costs paid (3,401) (1,493) (4,816)
Dividends paid - (3,372) (4,835)
Net cash generated used in financing activities (10,876) 49,948 34,198
Net decrease in cash and cash equivalents (8,000) 51,457 (2,667)
Cash and cash equivalents at the beginning of the period 13,088 15,755 15,755
Cash and cash equivalents at the end of the period 5,088 67,212 13,088
(1 Prior year cash flow presentation has been reclassified to align with the
FY 25 presentation for consistency.)
Condensed consolidated statement of Changes in Equity (unaudited)
Share capital Own shares EBT Capital redemption reserve Share premium account Other Reserves(1) Retained earnings Total
£000 £000 £000 £000 £000 £000 £000
Balance at 31 March 2025 1,128 (70) 1,200 22,500 19,938 18,836 63,532
Loss for the period - - - - - (5,067) (5,067)
Exchange differences - - - - (49) - (49)
Fair value (gains)/losses on cashflow hedges - - - - (92) - (92)
Total comprehensive income - - - - (141) (5,067) (5,208)
Share based payments - - - - 77 - 77
Issue of share capital 2 - - - - - 2
Total transactions with owners 2 - - - 77 - 79
Balance at 30 September 2025 1,130 (70) 1,200 22,500 19,874 13,769 58,403
(1) Other reserves comprises the merger reserve £6,967k, hedge reserve
£(176)k, share based payment reserve £13,141k and the foreign currency
translation reserve £(60)k.
Share capital Own shares EBT Capital redemption reserve Share premium account Other Reserves1 Retained earnings Total
£000 £000 £000 £000 £000 £000 £000
Balance at 31 March 2024 1,124 (70) 1,200 22,500 19,855 78,788 123,397
Loss for the period - - - - - 384 384
Exchange differences - - - - (65) - (65)
Total comprehensive income - - - - (65) 384 319
Dividends - - - - - (3,372) (3,372)
Share based payments - - - - - 514 514
Issue of share capital 2 - - - - - 2
Total transactions with owners 2 - - - - (2,858) (2,856)
Balance at 30 September 2024 1,126 (70) 1,200 22,500 19,790 76,314 120,860
(1 Other reserves comprises the merger reserve £6,967k, share based payment
reserve £13,450k and the foreign currency translation reserve £(44)k.)
Share capital Own shares EBT Capital redemption reserve Share premium account Other(1) Reserves Retained earnings Total
£000 £000 £000 £000 £000 £000 £000
Balance at 1 April 2024 1,124 (70) 1,200 22,500 19,855 78,788 123,397
Loss for the period - - - - - (55,117) (55,117)
Exchange differences - - - - (31) - (31)
Fair value (gains)/losses on cashflow hedges - - - - (84) - (84)
Total comprehensive income - - - - (115) (55,117) (55,232)
Dividends paid - - - - - (4,835) (4,835)
Share based payments - - - - 198 - 198
Issue of share capital 4 - - - - - 4
Total transactions with owners 4 - - - 198 (4,835) (4,633)
Balance at 31 March 2025 1,128 (70) 1,200 22,500 19,938 18,836 63,532
(1 Other reserves comprises the merger reserve £6,967k, hedge reserve
£(84)k, share based payment reserve £13,064k and the foreign currency
translation reserve £(10)k)(.)
Notes to the condensed financial statements
1. Basis of preparation
The condensed consolidated financial statements for the six months ended 30
September 2025 comprise the consolidated financial statements of impart Group
plc ('the Company') and its subsidiaries (collectively 'the Group').
The condensed consolidated financial statements do not include all the
information and disclosures required in the Group's annual consolidated
financial statements and do not constitute statutory financial statements as
defined in section 434 of the Companies Act 2006. Statutory accounts for the
year ended 31 March 2025 have been filed with the Registrar of Companies.
These accounts included an independent auditor's report, which was unqualified
and did not contain any statement under section 493 of the Companies Act 2006.
The accounting policies and estimation techniques applied in the condensed
consolidated financial statements are consistent with those applied in Group
financial statements for the year ended 31 March 2025. The provisions of IAS
34 'Interim Financial Reporting' have not been applied in full.
The condensed consolidated financial statements are stated in thousands of
pounds sterling, which is the Group's presentation currency.
Going concern
The Directors have assessed the Group's ability to continue as a going concern
and have not identified any material uncertainties that may cast significant
doubt on its ability to continue in operational existence for at least 12
months from the date of approval of these condensed consolidated financial
statements.
At the period end, the Group had access to a £115 million revolving credit
facility maturing on 30 June 2027, providing funding certainty and liquidity
headroom, with all covenants met comfortably. Net debt at the period end was
£109.6 million (H1 2025: £48.1 million). Whilst leverage is temporarily
elevated, the Board has a clear plan to reduce through cost efficiencies and
cash generation.
The Group's financial performance since year-end has remained broadly in line
with the Board-approved FY26 budget and the base case used for the bank
refinancing which was successfully concluded on 27 June 2025. Stress testing
performed at year-end demonstrated adequate covenant headroom, and actual
trading since then has not altered this conclusion.
2. Operating segments
The Group's operating segments are defined and presented in accordance with
IFRS 8: Operating Segments, based on the internal management reporting
structure and financial information reviewed by the Chief Operating Decision
Maker (CODM), identified as the Chief Executive Officer. The Group's primary
reporting format is by business unit.
During the period, the Group revised its operating segments to align with the
updated business unit structure. Comparative information has been restated
accordingly. The prior period reclassifications are detailed in note 12.
The Group's revised operating segments are:
Iomart Cloud Services
Provider of managed cloud hosting, colocation, and connectivity services
through owned UK data centres. Delivers private and hybrid cloud solutions,
backup and disaster recovery, and managed IT services primarily to the larger
SME and corporate market.
Atech
Leading and rapidly growing Microsoft Solution Partner, delivering complex,
public cloud deployments, modern workplace solutions, digital transformation
and specialised managed services to mid-sized enterprises.
Domain and Mass Hosting (Easyspace)
Our domain and mass hosting division delivering domain name registration and
mass hosting services primarily to small and micro businesses.
Revenue by operating segment
For the six months ended 30 September For the year ended 31 March
2025 2024* 2025*
Revenue by operating segment £'000 £'000 £'000
Iomart Cloud Services 44,504 49,445 97,059
Atech 25,565 4,350 30,188
Domain and Mass Hosting (Easyspace) 7,676 8,155 16,213
Total revenue 77,745 61,950 143,460
(1Reclassification of historic periods is detailed in note 12.)
Iomart revenue can be further disaggregated as follows:
For the six months ended 30 September For the year ended 31 March
2025 2024(1) 2025(1)
Iomart disaggregated revenue £'000 £'000 £'000
Cloud managed services 33,043 35,901 71,869
Self-managed infrastructure 6,230 8,232 15,241
Non-recurring 5,231 5,312 9,949
Total revenue 44,504 49,445 97,059
(1Reclassification of historic periods is detailed in note 12.)
Recurring and Non-Recurring Revenue
The amount of recurring and non-recurring revenue recognised during the year
can be summarised as follows:
For the six months ended 30 September For the year ended 31 March
2025 2024* 2025*
£'000 £'000 £'000
Recurring 67,189 56,638 126,272
Non-recurring 10,556 5,312 17,188
Total revenue 77,745 61,950 143,460
(1see note 12 for reclassification of historic periods.)
Geographical Information
In presenting the consolidated information on a geographical basis, revenue is
based on the geographical location of customers. The United Kingdom is the
place of domicile of the parent company, iomart Group plc. No individual
country other than the United Kingdom contributes a material amount of
revenue; therefore revenue from outside the United Kingdom has been shown as
from Rest of the World.
For the six months ended 30 September For the year ended 31 March
2025 2024 2025
£'000 £'000 £'000
United Kingdom 71,662 54,765 126,272
Rest of world 6,083 7,185 17,188
77,745 61,950 143,460
Profit by operating segment
For the six months ended 30 September 2025
£'000 Iomart Atech Easyspace Corporate centre Total
Adjusted EBITDA 9,091 2,581 3,886 (2,648) 12,910
Depreciation (6,901) (146) (62) - (7,109)
Amortisation other intangibles (3,182) (146) (172) (157) (3,657)
Total adjusted EBIT (992) 2,289 3,652 (2,805) 2,144
Finance costs (4,647) (4,647)
Share based payments (77) (77)
Exceptionals (1,561) (1,561)
Amortisation acquired intangibles (2,330) (2,330)
Statutory IFRS profit/(loss) before tax (6,471)
For the six months ended 30 September 2024
£'000 Iomart Atech Easyspace Corporate centre Total
Adjusted EBITDA 15,054 (173) 4,514 (2,442) 16,952
Depreciation (7,385) (9) (39) - (7,432)
Amortisation other intangibles (2,561) (138) (175) (95) (2,968)
Total adjusted EBIT 5,108 (320) 4,300 (2,537) 6,552
Finance costs (2,287) (2,287)
Share based payments (514) (514)
Acquisition costs (1,151) (1,151)
Amortisation Acquired intangibles (1,613) (1,613)
Statutory IFRS profit/(loss) before tax 987
For the year ended 31 March 2025
£'000 Iomart Atech Easyspace Corporate centre Total
Adjusted EBITDA 27,460 3,067 8,562 (4,777) 34,312
Depreciation (14,522) (132) (76) (14,730)
Amortisation other intangibles (5,945) (288) (350) (174) (6,757)
Total adjusted EBIT 6,993 2,647 8,136 (4,951) 12,825
Finance costs (6,370) (6,370)
Share based payments (198) (198)
Acquisition costs (1,674) (1,674)
Exceptionals (52,900) (52,900)
Amortisation acquired intangibles (4,902) (4,902)
IFRS profit/(loss) before tax (53,219)
3. Acquisition costs and exceptional administrative expenses
For the six months ended 30 September For the year ended 31 March
2025 2024 2025
£'000 £'000 £'000
Professional fees - (643) (866)
Non-recurring acquisition integration costs - (508) (808)
Total Acquisition costs - (1,151) (1,674)
Exceptional administrative expenses (1,561) - -
During the period the Group incurred £0.5m of exceptional administrative
expenses relating to the change of Chief Executive Officer. Remaining
exceptional costs related to the cost efficiency, integration and corporate
programmes plus £0.3m accelerated write-off of bank arrangement fees on bank
facilities.
4. Net Finance costs
For the six months ended 30 September For the year ended 31 March
2025 2024 2025
£'000 £'000 £'000
Finance income:
Bank Interest Receivable 8 105 155
Finance costs:
Bank loan (3,497) (1,761) (5,168)
Interest on lease liabilities (594) (466) (928)
Accelerated write off of arrangement fee on bank facility (319) - -
Other interest charges (245) (165) (429)
(4,655) (2,392) (6,525)
Net finance costs (4,647) (2,287) (6,370)
5. Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of ordinary shares in
issue during the year, after deducting shares held by the Employee Benefit
Trust. Diluted earnings per share is calculated by dividing the earnings
attributable to ordinary shareholders by the total of the weighted average
number of ordinary shares in issue during the year after adjusting for the
dilutive potential ordinary shares relating to share options. The
calculations of earnings per share are based on the following results:
For the six months ended 30 September For the year ended 31 March
2025 2024 2025
£'000 £'000 £'000
(Loss)/Profit for the period/year and basic earnings attributed to ordinary (5,067) 384 (55,117)
shareholders
Weighted average number of ordinary shares:
Called up, allotted and fully paid at start of period 112,764 110,422 112,342
Shares held by Employee Benefit Trust (141) (141) (141)
Issued share capital in the period 62 1,016 244
Weighted average number of ordinary shares - basic 112,685 111,297 112,445
Dilutive impact of share options 1,190 2,496 1,128
Weighted average number of ordinary shares - diluted 113,875 113,793 113,573
Basic earnings per share (p) (4.5) 0.30 (49.0)
Diluted earnings per share (p) (4.5) 0.30 (49.0)
Iomart Group plc assess the performance of the Group by adjusting earnings per
share, calculated in accordance with IAS 33, to exclude certain non-trading
items. The calculation of the earnings per ordinary share on a basis which
excludes such items is based on the following adjusted earnings:
For the six months ended 30 September For the year ended 31 March
2025 2024 2025
£'000 £'000 £'000
(Loss)/profit for the financial period and basic earnings attributed to (5,067) 384 (55,117)
ordinary shareholders
Amortisation of acquired intangible assets 2,330 1,613 4,902
Acquisition costs - 1,151 1,674
Non-recurring exceptional administrative expenses 1,561 - -
Share based payments 77 514 198
Exceptional goodwill impairment charge - - 52,900
Tax impact of adjusting items (992) (659) (734)
Adjusted loss for the financial year and adjusted basic earnings attributed to (2,091) 3,003 3,823
ordinary shareholders
Adjusted basic earnings per share (p) (1.9) 2.7 3.4
Adjusted diluted earnings per share (p) (1.9) 2.6 3.4
6. Taxation
For the six months ended 30 September For the year ended 31 March
2025 2024 2025
£'000 £'000 £'000
Corporation Tax:
Tax credit/(charge) for the period/year 572 (715) (1,024)
Adjustment relating to prior years - - 414
Total current taxation credit/(charge) 572 (715) (610)
Deferred Tax:
Origination and reversal of temporary differences 832 112 24
Adjustment relating to prior periods - - (1,312)
Total deferred taxation credit/(charge) 832 112 (1,288)
Total taxation credit/(charge) for the period/year 1,404 (603) (1,898)
7. Intangible assets
Goodwill Development Acquired customer Acquired Brand Software Acquired beneficial contract Domain names & IP addresses Total
costs
relationships
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Cost:
At 1 April 2024 109,821 18,423 67,596 - 11,226 86 336 207,488
Additions - 1,217 - - 16,465 - - 17,682
Foreign exchange differences - - (46) - (35) - - (81)
At 30 September 2024 109,821 19,640 67,550 - 27,656 86 336 225,089
Arising on acquisitions 46,615 - 13,770 1,794 24 - - 62,203
Additions - 1,690 - - 2,246 - - 3,936
Foreign exchange differences - - 26 - 20 - 2 48
At 31 March 2025 156,436 21,330 81,346 1,794 29,946 86 338 291,276
Arising on acquisitions - -
Additions - 1,505 - - - - - 1,505
Foreign exchange differences - - (28) - (21) - - (49)
At 30 September 2025 156,436 22,836 81,318 1,794 29,925 86 338 292,732
Accumulated amortisation:
At 1 April 2024 - (14,380) (57,537) - (10,124) (83) (312) (82,436)
Amortisation - (1,043) (1,613) - (1,919) (2) (4) (4,581)
Foreign exchange differences - - 46 - 35 - - 81
Disposals - - - - - - - -
At 30 September 2024 - (15,423) (59,104) - (12,008) (85) (316) (86,936)
Amortisation - (1,176) (3,215) - (2,608) (1) (4) (7,004)
Impairment (52,900) - - (74) - - - (52,974)
Foreign exchange differences - - (25) - (32) - - (57)
At 31 March 2025 (52,900) (16,599) (62,344) (74) (14,648) (86) (320) (146,971)
Amortisation - (1,368) (2,294) (148) (2,173) - (4) (5,987)
Foreign exchange differences - - 28 - 21 - - 49
At 30 September 2025 (52,900) (17,968) (64,610) (222) (16,800) (86) (324) (152,909)
Carrying amount:
At 30 September 2025 103,536 4,868 16,708 1,572 13,125 - 14 139,823
At 31 March 2025 103,536 4,731 19,002 1,720 15,298 - 18 144,305
At 30 September 2024 109,821 4,217 8,446 - 15,648 1 20 138,153
8. Property, plant and equipment
Freehold property Right of use assets Property improvements Datacentre equipment Computer equipment Office equipment Motor vehicles Total
£000 £000 £000 £000 £000 £000 £000 £000
Cost:
At 1 April 2024 8,236 27,530 18,140 34,467 127,292 3,094 89 218,848
Additions in the period - 1,933 24 814 2,480 39 - 5,290
Disposals in the period - - - - - (3) (4) (7)
Currency translation differences - (163) - - (333) - - (496)
At 30 September 2024 8,236 29,300 18,164 35,281 129,439 3,130 85 223,635
Acquisition of subsidiary - 258 99 - 12 78 - 447
Additions in the period - 898 316 1,512 2,334 39 - 5,099
Disposals in the period - (312) - (1,630) (72) (214) - (2,228)
Currency translation differences - 91 - - 152 - - 243
At 31 March 2025 8,236 30,235 18,579 35,163 131,865 3,033 85 227,196
Additions in the period - 1,164 206 1,623 1,786 20 - 4,798
Disposals in the period - (958) - - - - - (958)
Currency translation differences - 31 - - (33) - - (2)
At 30 September 2025 8,236 30,472 18,785 36,786 133,618 3,053 85 231,034
Accumulated depreciation:
At 1 April 2024 (1,533) (14,646) (10,131) (20,302) (106,006) (2,704) (34) (155,356)
Disposals in the period - - - - - 1 4 5
Currency translation differences - 132 - - 318 - - 450
Charge for the period (119) (1,852) (498) (820) (4,056) (80) (7) (7,432)
At 30 September 2024 (1,652) (16,366) (10,629) (21,122) (109,744) (2,783) (37) (162,333)
Disposals in the period - 312 - 1630 72 214 - 2,228
Currency translation differences - (74) - - (142) - - (216)
Charge for the period (118) (1,953) (577) (845) (3,752) (107) (8) (7,360)
At 31 March 2025 (1,770) (18,081) (11,206) (20,337) (113,566) (2,676) (45) (167,681)
Disposals in the period - 672 - - - - - 672
Currency translation differences - 94 - - 26 - - 120
Charge for the period (115) (1,888) (713) (942) (3,369) (75) (7) (7,109)
At 30 September 2025 (1,885) (19,202) (11,919) (21,279) (116,909) (2,751) (52) (173,997)
Carrying amount:
At 30 September 2025 6,351 11,270 6,866 15,507 16,709 302 33 57,037
At 31 March 2025 6,466 12,154 7,373 14,826 18,299 357 40 59,515
At 30 September 2024 6,584 12,934 7,535 14,159 19,695 347 48 61,301
9. Analysis of change in net debt
Analysis of change in net debt Cash and Bank IFRS 16 Total Net Cash/(Debt)
cash equivalents
Loans
Leases
£000 £000 £000 £000
At 1 April 2024 15,755 (40,000) (18,091) (42,336)
Additions to lease liabilities - - (1,933) (1,933)
New bank loans - (57,000) - (57,000)
Currency translation - - 19 19
Cash and cash equivalents cash outflow 51,457 - - 51,457
Lease liabilities cash outflow - - 1,723 1,723
At 30 September 2024 67,212 (97,000) (18,282) (48,070)
Acquired on acquisition of subsidiary 3,403 (6,244) - (2,841)
Repayment of debt acquired on acquisition - 6,244 - 6,244
Additions to lease liabilities - - (1,403) (1,403)
Bank loan interest charged - 4,968 - 4,968
Bank loan interest paid - (4,968) - (4,968)
Currency translation - - (22) (22)
Cash and cash equivalents cash outflow (57,527) - - (57,527)
Lease liabilities cash outflow - - 1,701 1,701
At 1st April 2025 13,088 (97,000) (18,006) (101,918)
Drawdown of bank loan - (500) - (500)
Cash and cash equivalents cash outflow (8,000) - - (8,000)
Additions to lease liabilities - - (1,124) (1,124)
Disposal to lease liabilities - - 452 452
Currency translation - - 2 2
Lease liabilities cash outflow - - 1,443 1,443
At 30 September 2025 5,088 (97,500) (17,233) (109,645)
10. Borrowings
30 September 2025 30 September 2024 31 March 2025
£'000 £'000 £'000
Current:
Lease liabilities (2,682) (2,560) (2,874)
Bank loans - - -
Current borrowings (2,682) (2,560) (2,874)
Non-current:
Lease liabilities (14,551) (15,722) (15,132)
Bank loans (97,500) (97,000) (97,000)
Total non-current borrowings (112,051) (112,722) (112,132)
Total borrowings (114,733) (115,282) (115,006)
At 30 September 2025, the Group had a £115m Revolving Credit Facility ('RCF')
which has a maturity date of 30 June 2027. The RCF provide the Group with
additional liquidity which will be used for general business purposes and to
fund investments, in accordance with the Group's strategic plan. During the
year, the Group made a drawdown of £0.5m.
Details of the Group's lease liabilities are included in note 11.
11. Lease Liabilities
The Group leases assets including buildings, fibre contracts, colocation and
software contracts. Information about leases for which the Group is a lessee
is presented below:
Right-of-use assets
The right-of-use assets in relation to leasehold property and datacentre
equipment are disclosed as non-current assets and are disclosed within
property, plant and equipment at 30 September 2025 (note 8). The right-of-use
assets in relation to software are disclosed as non-current assets and are
disclosed within intangibles at 30 September 2025 (note 7).
Lease liabilities
The maturity analysis of undiscounted lease liabilities is shown in the table
below:
30 September 2025 30 September 2024 31 March 2025
£'000 £'000 £'000
Lease liabilities (current) (2,682) (2,560) (2,874)
Lease liabilities (non-current) (14,551) (15,722) (15,132)
Total lease liabilities (17,233) (18,282) (18,006)
The maturity analysis of undiscounted lease liabilities is shown in the table
below:
30 September 2025 30 September 2024 31 March 2025
£000 £000 £000
Amounts payable under leases: £'000 £'000 £'000
Within one year (3,462) (3,539) (3,699)
Between two to five years (9,873) (10,139) (10,416)
After more than five years (7,341) (8,433) (7,389)
(20,676) (22,111) (21,504)
Add: unearned interest 3,443 3,829 3,498
Total lease liabilities (17,233) (18,282) (18,006)
12. Reclassification of segmental reporting- Prior periods
Following the changes to business units as outlined in the business model
update in the half year statement, the tables below show the reclassifications
applied to each business unit to arrive at the revised segmentation
disclosures for the historic periods.
Revenue - historic periods reclassification
For the six months ended September 2024 Original presentation Reclassification Revised presentation
Iomart Cloud Services 55,959 (6,514) 49,445
Atech - 4,350 4,350
Domain and Mass Hosting (Easyspace) 5,991 2,164 8,155
Total Revenue 61,950 - 61,950
Iomart disaggregated Revenue:
Cloud managed services 38,253 (2,352) 35,901
Self-managed infrastructure 12,394 (4,162) 8,232
Non-recurring 5,312 - 5,312
Total Iomart revenue 55,959 (6,514) 49,445
For the year ended 31 March 2025 Original presentation Reclassification Revised presentation
Iomart Cloud Services 109,998 (12,938) 97,059
Atech 21,463 8,725 30,188
Domain and Mass Hosting (Easyspace) 11,999 4,213 16,213
Total Revenue 143,460 - 143,460
Iomart disaggregated Revenue:
Cloud managed services 76,363 (4,493) 71,870
Self-managed infrastructure 23,686 (8,445) 15,241
Non-recurring 9,949 - 9,949
Total Iomart revenue 109,998 (12,938) 97,060
Adjusted EBITDA- historic periods reclassification
For the six months ended September 2024 Original presentation Reclassification Revised presentation
Iomart Cloud Services 16,340 (1,286) 15,054
Atech - (173) (173)
Domain and Mass Hosting (Easyspace) 3,054 1,459 4,513
Adjusted EBITDA 19,394 - 19,394
For the year ended 31 March 2025 Original presentation Reclassification Revised presentation
Iomart Cloud Services 30,207 (2,747) 27,460
Atech 3,211 (144) 3,067
Domain and Mass Hosting (Easyspace) 5,671 2,891 8,562
Adjusted EBITDA 39,089 - 39,089
13. Post balance sheet events
Issue of share options
On 24 October 2025, the Company granted 7,200,000 share options under its
Unapproved Share Option Scheme to the Executive Chair, Chief Financial
Officer, and senior management. The options have an exercise price of £0.01
per share and are subject to performance and service conditions, with full
vesting occurring on 24 October 2028.
These interim financial statements have not been adjusted as the grant
occurred after the reporting date and relates to conditions arising after that
date. The Company will account for these options as equity settled share-based
payments in accordance with IFRS 2 'Share-based Payment' in future periods.
14. Availability of Interim
The Company's Interim Report for the six months ended 30 September 2025 will
shortly be available to view on the Company's website (www.iomart.com).
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. END IR FELLLEFLEFBV
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