REG - Iomart Group PLC - H1 Trading Update

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RNS Number : 4078F  Iomart Group PLC  30 October 2025

30 October 2025

iomart Group plc

("iomart" or the "Group" or the "Company")

 

H1 Trading Update

 

iomart Group plc (AIM: IOM), the secure cloud services company, provides a
trading update for the six months ended 30 September 2025 ("H1 FY26") ahead of
the announcement of its half year results, expected to be released on 26
November 2025.

 

Group trading performance

 

In line with the Board's expectations, for the six months ended 30 September
2025, Group revenue grew 25%, reaching approximately £77.7 million (H1 FY25:
£62.0 million). This includes £21.7 million in revenue from the Atech
acquisition, which completed on 1 October 2024. Excluding the impact of
acquisitions, the traditional iomart business experienced a revenue decline of
around £6 million, reflecting the churn of customers in the prior year which
impacted the monthly run rate entering into this current financial year. Order
bookings have remained robust, consistent with the higher levels achieved last
year and customer renewal rates have improved resulting in consistently
positive net order bookings, supporting the Board's expectation for a stronger
performance in the second half. Approximately 30% of Group revenue now
originates from Microsoft-connected activities, up from around 7% two years
ago, demonstrating the increasing relevance of our skills and capabilities to
customers in this high demand space and the positive evolution of the Group.

 

Adjusted EBITDA((1)) is expected to be approximately £12.7 million, compared
to £17.0 million in the first half of the previous year. This result, which
is in line with the Board's expectations, reflects lower recurring revenues
within the traditional private cloud and data centre services, alongside a
shift in the Group's mix towards higher-growth, but lower-margin, Microsoft
product services. Cost efficiency improvements of £4 million on an annualised
basis have been achieved, which will benefit the second half and beyond.

 

Adjusted loss before tax((2)) is expected to be approximately £2.3 million,
compared to a £4.3 million adjusted profit before tax in the first half of
the previous year. This reflects the lower adjusted EBITDA((1)), a broadly
consistent adjusted depreciation and amortisation charge((3)), and an
approximately £2.0m higher interest expense, due to the funding of the Atech
acquisition.

 

The Group's operating cash generation remained positive, and net debt at 30
September 2025 was £109.5 million (31 March 2025: £101.9 million). The
increase reflects higher annual payments of £2.8m, in the first half, under
the Broadcom arrangements, increased interest payments and around £1.5
million of exceptional "one-off" costs incurred during the period. The net
debt includes a drawn amount of £97.5 million in our revolving credit
facility. As previously reported in June 2025, this facility was renewed with
a limit of £115 million and runs to 30 June 2027.

 

Outlook

 

The Board anticipates an improved performance in the second half of the
financial year, in line with 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.

 

 

 

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

 

((1))adjusted EBITDA is earnings before interest, tax, depreciation and
amortisation (EBITDA), before share based payment charges, forex gains or
losses on long term cash flow hedges, acquisition costs and exceptional
non-recurring items. Throughout this statement acquisition costs are defined
as acquisition related costs and non-recurring acquisition integration costs.

((2))adjusted (loss)/profit before tax is (loss)/profits before, tax, share
based payment charges, amortisation charges on  acquired intangibles, forex
gains or losses on long term cash flow hedges, accelerated write off of
arrangement fees on bank facilities, acquisition costs and exceptional
non-recurring items.

((3))adjusted depreciation & amortisation is  depreciation and
amortisation excluding amortisation of acquired intangibles.

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                                          Tel: 020 7597 4000
 Broker)
 Patrick Robb, Virginia Bull

 Alma Strategic Communications                                                     Tel: 020 3405 0205
 Caroline Forde, Hilary Buchanan, Louisa El-Ahwal

 

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+ experts 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. 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/)

 

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