Iomart Group plc
Iomart Group plc is a UK-based provider of secure hybrid cloud services, managed services and infrastructure, operating through three segments: Iomart Cloud Services (managed cloud hosting, colocation and connectivity from owned UK data centres, including the RapidSwitch and Oriium brands), Atech (a Microsoft Solutions Partner delivering public cloud, modern workplace, Microsoft 365, cyber security and managed security services), and Domain & Mass Hosting (Easyspace, Hosting UK and Sonassi brands, serving small/micro business domain registration and mass hosting customers). It serves Enterprise mid-market and SME customers predominantly in the UK, with 86% of FY26 revenue recurring.
11 annual reports read, FY2016 to FY2026
Open a year to see what its report said. Every line in it carries the page it was read from.
Sources: Companies House (11)
FY2027Next report expected 21 Jun 2027
- Open the reportJSONComing soonSixty seconds on the FY2026 report
Iomart Group plc, a UK provider of cloud computing and managed IT services, grew revenue by +8.0% to £154.9m in the year to 31 March 2026. It still made a loss after tax of £9.2m, though this was far smaller than the £55.1m loss the year before. The previous year's loss was dominated by a one-off £52.9m write-down of goodwill (the value placed on past acquisitions), which was not repeated. Underlying trading was weaker: operating profit before one-off costs and other adjustments, on the company's own measure, fell sharply to £5.2m. The report points to customers leaving its core cloud services, where costs are largely fixed, and a shift towards lower-margin Microsoft-related work. Cash at the year end was £8.9m against borrowings of £97.5m. Almost nothing was raised from shareholders and no dividend was paid or proposed. After the year end the bank facility was extended to 30 June 2028. Management expects a modest fall in revenue next year, with a softer first half and better profit in the second. The audit opinion was clean and no going-concern doubt was raised, although financing and liquidity was added as a new principal risk.
From the reportevery line sits on the page it namesWhat drove revenueRecurring contracted cloud managed services (private/hybrid/public cloud) delivered via owned UK data centres
Cloud managed services revenue £66.0m, reduced 8% on lower opening recurring run-rate and churn
page 21AndMicrosoft solution areas (Azure, Modern Work, Security) delivered via Atech
Atech revenue £50.1m; recurring Microsoft revenue £39.0m; over half of Group order bookings generated from Microsoft solution areas
page 22What moved the marginheadwindShift towards lower-margin Microsoft-related (Azure/M365) revenue
Increasing weighting towards Microsoft-related services carries a lower margin profile in the short term
page 20AndheadwindReduced utilisation of largely fixed-cost private cloud/data centre infrastructure
Lower recurring revenue against a largely fixed infrastructure cost base reduced Iomart Cloud Services EBITDA by £10.4m
page 20One-offs in the year£2.2m charge: Non-recurring administrative expenses - cost efficiency, integration and change of CEO (incl. £0.5m payment in lieu of notice/ex-gratia to departing CEO)
page 29What management saidGroup enters FY27 with a lower level of recurring revenue reflecting elevated churn in final months of FY26; trading expected weighted to H2 with a softer H1 followed by recovery; modest decline in full-year revenue expected but improved profit profile expected in H2, notwithstanding ongoing macroeconomic backdrop
page 9After the year endOn 5 June 2026, the Group's £115m Revolving Credit Facility was amended and extended to 30 June 2028 with existing lending syndicate (RBS, HSBC UK, Nationwide/Virgin Money); covenants amended to reflect current leverage; margin ratchet mechanism added
page 172The dividendNo final dividend recommended for FY26 (2025: nil); current policy is to pay interim and final dividends depending on the level of adjusted diluted earnings per share, but no dividend was paid in the year given trading performance and leverage
page 83Going concern and the auditAuditor's opinion unmodified (Grant Thornton UK LLP). No material uncertainties regarding going concern identified; Directors concluded appropriate to adopt going concern basis, covering 12 months from 22 June 2026, supported by the amended/extended £115m RCF (to 30 June 2028, £97.5m drawn, £17.5m headroom at year end) and stress testing (revenue would need to fall >25% or EBITDA margin deteriorate ~5ppts for a covenant breach, considered remote). Key audit matters: valuation of goodwill/investment in subsidiaries, revenue recognition (new), and going concern
page 90The risks it names first- Data and cyber security - MSPs are high-value targets; reputational and financial risk from cyber/data-related crimep.32
- Competition and product portfolio - larger competitors able to offer similar services at lower prices or bring new offerings faster, pressuring revenue and profitabilityp.32
- Staff - dependence on a relatively small number of senior/skilled personnel; risk of failure to retain key talentp.33
- Financing and liquidity - new principal risk in FY26 reflecting required refinancing activity and covenant compliancep.33
Read from C000686-AR-2026-ch.
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