Glasgow-based secure cloud services firm Iomart Group plc said its first-half profit before tax fell 77% to £1 million in the six months to September 30 as revenue held steady at £62 million.

Interim dividend per share fell 33% to 1.3p.

Iomart said: “The financial results announced today are in line with the pre-close trading update published on 1 October 2024, reflecting a challenging H1.

” The transformational acquisition of Atech post period end has materially strengthened iomart’s offerings, credentials and capabilities and the Board reiterates confidence in the Group’s FY25 outlook and future prospects …

“New Broadcom license arrangement has resulted in a short-term negative impact of £0.7m on Adjusted EBIT (being £1.4m new intangible amortisation charge, net of the £0.7m previous opex cost). This, combined with changes in the revenue mix, also influenced by prior period acquisitions, and the relatively fixed infrastructure costs, had a notable impact on H1 profitability …”

Iomart CEO Lucy Dimes said: “The Atech acquisition is a key step in delivering our Bigger, Better, Bolder strategy. The strength of the combined business, our order bookings momentum and the transformation and efficiency programmes we have put in place, mean we have entered the second half of the year in a considerably strengthened position.

“Our enlarged Group and combined skills will allow us to compete more robustly with enhanced services, greater scale and references across the growth areas of our industry. Through the combined power of Atech and iomart, we now have the accreditations, credentials and capabilities to convert a greater proportion of our sales pipeline, as well as unlock increased cross-sale opportunities.

“The growing demand for cloud computing and cyber security solutions, increasing complexity of the technical landscape, and accompanying need for a trusted and highly accredited partner with a strong delivery track record, give the Board confidence in the outlook for the Group and our ability to become the UK’s leading secure hybrid cloud provider.”