Iomart Navigates FY25 Churn Headwinds with Strategic Reset for FY26

Unknown Apr 02, 2026 900 Views

FY25 Performance Recap: Iomart Group PLC reported FY25 revenue of £143.5 million, up 13 percent year-on-year, driven by acquisitions including Atech. Adjusted EBITDA declined 9 percent to £34.3 million, while adjusted profit before tax fell 57 percent to £6.5 milli...

FY25 Performance Recap:

Iomart Group PLC reported FY25 revenue of £143.5 million, up 13 percent year-on-year, driven by acquisitions including Atech.
Adjusted EBITDA declined 9 percent to £34.3 million, while adjusted profit before tax fell 57 percent to £6.5 million.
A £52.9 million non-cash goodwill impairment led to a statutory loss before tax of £53.2 million.
Net debt surged to £101.9 million, reflecting the £57 million Atech acquisition.

Operational Challenges and Churn Impact:

Cloud services revenue dropped 7 percent due to elevated churn in self-managed and private cloud segments.
The full-year effect of this churn is expected to weigh on revenue run-rate into FY26, despite improved Q1 order bookings.
VMware license amortisation and interest expenses further compressed margins.

Strategic Response and Outlook:

Iomart initiated cost-saving measures targeting £4 million in annualised reductions, with 40 percent already actioned in Q1 FY26.
The Atech acquisition is expected to offset churn impact, contributing strong recurring revenue and enhancing public cloud and security offerings.
A new £115 million revolving credit facility was secured to support operational flexibility and debt restructuring.

Forward-Looking Insight:

The board remains confident in medium-term growth, citing strong demand for hybrid cloud, managed security, and Microsoft-aligned services.
FY26 will focus on operational efficiency, offshore expansion, and data centre footprint review to restore profitability.

Closing Thought: Iomart’s FY25 turbulence sets the stage for a leaner, more cloud-centric FY26, with strategic pivots aimed at stabilizing revenue and rebuilding investor confidence

Source: Investegate, Iomart Investor Portal, Daily Business Group — July 24, 2025

Source: Investegate, Iomart Investor Portal, Daily Business Group — July 24, 2025

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