Shares of Iomart Group plc, the Glasgow-based secure cloud services firm, fell another 10% on Wednesday after it said chief financial officer Scott Cunningham will step down to take up a new opportunity in a private company outside of the IT sector.
Iomart also published a trading update saying it experienced “a softening in trading during December and January.”
Iomart shares are down about 61% for the past year, slashing the firm’s stock market value to around £20 million.
“To ensure a smooth transition, Scott will continue in his role and work closely with Richard Last, Executive Chair, and the wider leadership team through the completion of the March year‑end reporting cycle,” said the Glasgow firm.
“It is expected that Scott will leave the Board and the Company in June 2026.
“Scott has served iomart with dedication for over seven years, playing a significant leadership role across the Group’s financial, operational and strategic development.
“The Board would like to express its thanks to Scott for his contribution during a period of considerable organisational evolution and transformation. The process to appoint Scott’s successor will commence immediately.”
Last said: “On behalf of the Board and the wider iomart team, I wish to thank Scott for his significant commitment and contribution to iomart over the last seven years and wish him every success in his new role.”
In its trading update, Iomart said: “The Group experienced a softening in trading during December and January, including an increase in customer churn compared to the earlier part of the financial year, particularly in certain high margin areas.
“Growth, albeit lower than expected, has been achieved in Azure, security and Microsoft 365 where margins are traditionally lower.
“Net order bookings are expected to be positive for the financial year, and the sales pipeline is encouraging.
“The Group continues its cost optimisation and efficiency program, with annualised savings of over £5.0m now having been achieved. We continue to pursue further efficiency opportunities which will generate further profit benefits, operational efficiencies and service quality improvements.
“Overall, for the year to 31 March 2026, the Board now expects Group revenue to be broadly in line with, and EBITDA to be just below, the lower end of current market expectations.
“Cash performance and capital expenditure discipline remain strong, and the Group continues to operate within its current bank facilities.”
Iomart said the latest known sell-side analyst estimates for the full year ended March 31, 2026, are:
· Revenue in the range of £157.6m to £159.1m;
· Adjusted EBITDA in the range of £27.7m to £28.5m; and
· Adjusted loss before tax in the range of £(2.1)m to £(1.0)m
· Net Debt in the range of £98m to £107m