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Iomart wraps up year of transition
Channel player shares full-year results as the business moves to concentrate on hybrid cloud and security
After a year of transition, Iomart has emerged as a business more tightly focused on high-growth areas of cloud, security and data protection.
The firm has featured regularly on the pages of MicroScope, charting its transition through its results and acquisition moves as it journeyed towards becoming a more sustainable operation.
For the year ended 31 March, the firm delivered stable results that were in line with market expectations, with revenue growth of 8% to £154.9m (2025: £143.5m). That included a full-year contribution from Adtech, which it picked up in 2024. Organic activity revenue dropped, with customer churn in provate cloud managed services responsible.
Gross order bookings of £20.6m ARR was offset by customer churn of £21.2m (2025: £19.5m), with those users primarily in Microsoft Modern Work offerings and the last legacy backup platform customers.
Profitability improved during the second half, with adjusted EBIT margin increasing to 3.9% compared with 2.8% in the first half. Adjusted pre-tax losses came in at £4m, compared with a £6.5m profit a year earlier. That was a result of a reduction in adjusted EBITDA, increased finance costs and a full year of Adtech acquisition debt.
FY ’26 saw the integration of Extrinsica into Atech acquisitions and a move to consolidate its Microsoft activities to a single practice under a clearly defined management structure. In April, Craig MacKay was appointed group chief operating officer to lead sales and operations at Iomart Cloud Services and Atech.
The firm was also able to deliver on its £4m cost-saving programme during the fiscal year.
Progress report
Despite those numbers, Richard Last, executive chair of Iomart, shared an upbeat commentary about the progress made by the business during the year.
“FY26 has been a year of transition and repositioning for Iomart,” he said. “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,” added Last. “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.”
He said the plan for the next fiscal year was to double down on the strategy and maintain its focus on higher-value technologies and services.
“Our focus for FY ’27 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,” said Last.
Looking ahead, the firm indicated it expected a “modest” decline in full-year revenue, but anticipated its focus on costs and higher-value sales would improve profitability.
The firm is also anticipating that the Broadcom VMware licensing transition coming in April next year will continue to drive pipeline opportunities, given Iomart is an accredited Pinnacle Partner.
