UK's iomart group FY revenue rises, driven by Atech acquisition
UK's iomart group FY revenue rises, driven by Atech acquisition
Overview
UK secure cloud services provider's FY26 revenue rose 8% yr/yr, driven by Atech acquisition
Adjusted EBITDA declined yr/yr due to lower recurring revenue and shift to lower-margin services
Adjusted diluted EPS turned negative, and company reported adjusted pretax loss for the year
Outlook
Company expects a modest decline in full-year revenue for FY27
Board expects improved profit profile in second half of FY27 due to cost actions
Result Drivers
CUSTOMER CHURN - Co said elevated customer churn, especially in private cloud managed services and Microsoft Modern Work offerings, drove organic revenue decline
REVENUE MIX SHIFT - Shift toward lower-margin Microsoft-related services and away from legacy technologies reduced profitability
COST SAVINGS - Annualised cost savings of £4m achieved, partially offsetting lower profitability
Company press release: ID:nRSW2905Ja
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue |
| GBP 154.90 mln |
|
FY Adjusted EBITDA |
| GBP 25.60 mln |
|
FY Pretax Profit |
| -GBP 13.60 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for iomart group PLC is GBp20.00, about 11.1% above its June 22 closing price of GBp18.00
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)