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Iomart strikes positive tone after mixed H1
Managed services player shares the progress made in its first half as it continues to look for a replacement CEO
This time last year, managed service provider (MSP) Iomart was hitting the headlines for making a game-changing acquisition, a move that has made a positive impact on the bottom line in the 12 months since.
In October 2024, the firm picked up Atech Cloud to add more depth to its Microsoft services and Azure capabilities.
The contribution of Atech was highlighted in Iomart’s 2025 first-half numbers, covering the six months to 30 September.
The numbers showed a 25% increase in group revenue to £77.7m, which included £21.7m from the Atech acquisition.
The firm had previously warned investors that organic revenues would be down due to expected customer churn, and as a result, there was a decline of £6m.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at £12.9m, down from £17m in the same period last year, which was in line with expectations and a consequence of a change in revenue mix and a reduction in recurring revenues from legacy services. The business also slipped into an adjusted loss before tax of £2.5m, compared with £4.3m in profits at the same point a year earlier.
Further evidence of the impact of last year’s acquisition could be seen in the increase in Microsoft business. Services connected to the vendor accounted for 30% of group revenues, compared with just 7% in the first half last year. Atech has contributed to that, along with some strategic repositioning and being able to tap into demand for cloud.
The addition of Atech went beyond just Microsoft, however, bolstering the group’s managed cyber security capabilities too.
The channel player is continuing its search for a CEO, after Lucy Dimes stepped down at the end of May. The comments accompanying the first-half results indicated that the board was looking for an experienced candidate who would help grow the business.
The first-half numbers revealed that there had been a focus on costs, with £4m in annualised efficiencies achieved, which will start to positively benefit numbers in the second half of the year, with further initiatives planned to benefit the state of the finances.
“We have made important strides in operational efficiency, delivering the initial phase of our cost optimisation programme and achieving annualised savings to date of £4m, which will benefit the group’s financial results in the second half and beyond. Our investment in technology, people and process improvements is yielding results, as evidenced by strong order bookings, improved customer retention and the expansion of our capabilities in high-growth areas such as managed security,” the firm stated.
The board is expecting an improved second half, leading to final numbers that meet expectations. Although some of the arrows were pointing down, the statement accompanying the results emphasised the progress that was being made.
“Our financial performance for the first half of the year, while a reduction from the prior year, is in line with the board’s expectations and consistent with the pre-close trading update issued on 30 October 2025. We have made tangible progress in strengthening our operational foundations, simplifying our business model and positioning Iomart for sustainable growth,” it stated.
“Our vision remains clear and consistent; to establish Iomart as the UK’s leading provider of secure cloud services for the SME and enterprise mid-market,” the statement added.
