Shares of Iomart Group plc, the Glasgow-based secure cloud services firm, fell another 20% on Tuesday to around 14p after it published results for the year ended March 31, 2026, showing a statutory IFRS loss before tax of £13.6 million, an improvement on the prior year’s £53.2 million loss.
The firm said its net debt rose to £108.6 million from £101.9 million.
Revenue for Iomart grew 8% to £154.9 million.
However, the firm said: “Excluding recent acquisitions, the existing businesses experienced a revenue decline of 8% year-on-year primarily driven by customer churn in Iomart private cloud managed services alongside the impact of lower opening run-rate.”
Iomart shares have fallen about 95% in the past five years, slashing the firm’s stock market value to around £16 million.
On February 11, Iomart said chief financial officer Scott Cunningham would step down to take up a new opportunity in a private company outside of the IT sector. On Tuesday, the firm said the process to appoint a successor CFO “is progressing positively.”
Last December, Iomart said its auditors Deloitte LLP had resigned “at the board’s request” and that Grant Thornton UK LLP had been appointed as its new auditors.
In its outlook, Iomart said: “While a modest decline in full year revenue is expected, the board expects the benefits of cost base actions and an increased focus on higher-value, strategically aligned services to support an improved profit profile during the second half of FY27.
“Broadcom VMware licensing transition to April 2027 is expected to generate significant pipeline opportunity; iomart is well positioned as an accredited Pinnacle Partner with a fully deployed, enterprise-grade VCF private cloud platform.
“The board is committed to delivering disciplined execution, operational efficiency and improved value for shareholders.”
Iomart executive chair Richard Last said: “FY26 has been a year of transition and repositioning for Iomart. The group has taken decisive steps to redefine its operating model, enhance business unit accountability and position the business for sustainable long-term growth.
“I am pleased to report that we delivered on our £4m annualised cost savings target, resulting in a structurally leaner and more focused organisation.
“The financial results reflect the ongoing transition away from legacy technologies, with churn, particularly elevated in the final quarter, weighing on near-term performance.
“However, we have maintained strong cash generation, refreshed our banking facilities, and entered FY27 with a clearer strategic framework and more defined business unit structure to drive better performance and focus on distinct growth areas.
“Our focus for FY27 is clear, to rebuild growth momentum in higher-value cloud, security and data protection services, continue our cost optimisation programme, and leverage our strong VMware and Microsoft credentials as both markets undergo significant transition.”