Iomart Group plc, the Glasgow-based secure cloud services firm, said on Thursday its search for a new CEO “will commence later in the year” following a full review of its “business growth plans and options.”
The update came as Iomart published delayed results for the year ended March 31, 2025, showing a loss before tax of £53.2 million compared to a profit of £8.7 million a year earlier “impacted by exceptional non-cash goodwill impairment charge of £52.9m.”
Revenue rose 13% to £143.5 million.
Iomart shares fell more than 10%.
On May 30, Iomart said Lucy Dimes would step down as chief executive officer and leave the company. Iomart chair Richard Last became executive chair while the firm looks for a new CEO.
Iomart shares have fallen about 80% in the past year to about 25p to slash the firm’s stock market value to around £28 million.
On May 2, Iomart had said it would unite its cloud services activities under a single brand — Atech.
On June 30, Iomart announced a £115 million refinancing of its banking facilities and a delay in the publishing of its full year results.
Iomart said on Thursday: “The directors are proposing not to declare a final dividend (2024: 3.00p) reflecting the higher level of indebtedness in the group following the Atech acquisition and reduced profitability in the current year.
“As a result, for the current year the total dividend will consist of the interim dividend of 1.3p paid in January 2025 (2024: 4.94p total of interim and final combined).”
The firm added: “The board believes it is in the best interest of shareholders to forego the payment of a final dividend, with future dividends restored based on improved operating profitability and a reduced overall level of indebtedness.”
Adjusted profit before tax fell 57% to £6.5 million “reflecting reduction in adjusted EBIT and the higher interest charges on bank debt post the Atech acquisition.”
Iomart net debt increased to £101.9 million (March 31, 2024: £42.3m) following the cash outflow of £57 million associated with the acquisition of Atech.
Executive chair Last said: “The year has been one of both challenge and transformation for iomart. The group’s trading performance was mixed, with customer churn impacting revenue and profits.
“On the positive side we have seen good order bookings growth in the year, which gives the Board confidence in achieving our medium-term growth strategy.
“The acquisition of Atech during the year was a significant milestone, substantially enhancing the group’s scale, credibility, and capabilities in public cloud and security. Since acquisition, Atech has delivered revenue growth and profitability in line with our expectations, reinforcing the value of this strategic move.
“Our focus for FY26 will be to improve the operating efficiency of the group, address churn in our self-managed and private cloud customer base, increase sales momentum in high-growth service areas, including providing Atech with the support to flourish, and to reduce our level of debt.”