Iomart Group plc, the Glasgow-based secure cloud services firm, said in a trading update on Thursday that its group revenue grew 25% to £77.7 million in the six months ended September 30, 2025.
This included £21.7 million in revenue from the acquisition of Atech, which completed on October 1, 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,” said the Glasgow firm.
“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.”
Iomart shares fell about 3% on Thursday. Iomart’s stock has fallen about 75% in the past year to about 21p to slash the firm’s stock market value to around £24 million.
First-half adjusted EBITDA is expected to be £12.7 million, down from £17 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,” said iomart.
“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 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, a broadly consistent adjusted depreciation and amortisation charge, and an approximately £2.0m higher interest expense, due to the funding of the Atech acquisition,” said iomart.
“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.”
In its outlook, iomart said: “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.”