Iomart Group PLC - H1 Trading Update

30 October 2025

iomart Group plc

("iomart" or the "Group" or the "Company")

H1 Trading Update

iomart Group plc (AIM: IOM), the secure cloud services company, provides a trading update for the six months ended 30 September 2025 ("H1 FY26") ahead of the announcement of its half year results, expected to be released on 26 November 2025.

Group trading performance

In line with the Board's expectations, for the six months ended 30 September 2025, Group revenue grew 25%, reaching approximately £77.7 million (H1 FY25: £62.0 million). This includes £21.7 million in revenue from the Atech acquisition, which completed on 1 October 2024. Excluding the impact of acquisitions, the traditional iomart business experienced a revenue decline of around £6 million, reflecting the churn of customers in the prior year which impacted the monthly run rate entering into this current financial year. Order bookings have remained robust, consistent with the higher levels achieved last year and customer renewal rates have improved resulting in consistently positive net order bookings, supporting the Board's expectation for a stronger performance in the second half. Approximately 30% of Group revenue now originates from Microsoft-connected activities, up from around 7% two years ago, demonstrating the increasing relevance of our skills and capabilities to customers in this high demand space and the positive evolution of the Group.

Adjusted EBITDA⁽¹⁾ is expected to be approximately £12.7 million, compared to £17.0 million in the first half of the previous year. This result, which is in line with the Board's expectations, reflects lower recurring revenues within the traditional private cloud and data centre services, alongside a shift in the Group's mix towards higher-growth, but lower-margin, Microsoft product services. Cost efficiency improvements of £4 million on an annualised basis have been achieved, which will benefit the second half and beyond.

Adjusted loss before tax⁽²⁾ is expected to be approximately £2.3 million, compared to a £4.3 million adjusted profit before tax in the first half of the previous year. This reflects the lower adjusted EBITDA⁽¹⁾, a broadly consistent adjusted depreciation and amortisation charge⁽³⁾, and an approximately £2.0m higher interest expense, due to the funding of the Atech acquisition.

The Group's operating cash generation remained positive, and net debt at 30 September 2025 was £109.5 million (31 March 2025: £101.9 million). The increase reflects higher annual payments of £2.8m, in the first half, under the Broadcom arrangements, increased interest payments and around £1.5 million of exceptional "one-off" costs incurred during the period. The net debt includes a drawn amount of £97.5 million in our revolving credit facility. As previously reported in June 2025, this facility was renewed with a limit of £115 million and runs to 30 June 2027.

Outlook

The Board anticipates an improved performance in the second half of the financial year, in line with current market expectations, supported by ongoing positive order bookings, reduced churn within the self-managed infrastructure segment and the achievement of £4 million in annualised cost reductions. Further efficiency savings are being progressed as well as new focussed sales initiatives.

Note: Company compiled range is based on known sell-side analyst estimates. The latest known sell-side analyst estimates for the full year ended 31 March 2026 are:

·        Revenue in the range of £159m to £160m;

·        Adjusted EBITDA⁽¹⁾ in the range of £27.7m to £29.2m;

·        Adjusted PBT ⁽² in the range of £(1.7)m loss to £0.4m profit; and

·        Net Debt (including IFRS 16 finance lease liabilities) in the range of £97.5m to £107.8m

⁽¹⁾adjusted EBITDA is earnings before interest, tax, depreciation and amortisation (EBITDA), before share based payment charges, forex gains or losses on long term cash flow hedges, acquisition costs and exceptional non-recurring items. Throughout this statement acquisition costs are defined as acquisition related costs and non-recurring acquisition integration costs.

⁽²⁾adjusted (loss)/profit before tax is (loss)/profits before, tax, share based payment charges, amortisation charges on  acquired intangibles, forex gains or losses on long term cash flow hedges, accelerated write off of arrangement fees on bank facilities, acquisition costs and exceptional non-recurring items.

⁽³⁾adjusted depreciation & amortisation is  depreciation and amortisation excluding amortisation of acquired intangibles.

For further information:

About iomart Group plc

iomart Group plc (AIM: IOM) is one of the UK's leading providers of secure cloud managed services, simplifying the complexities of modern technology for businesses, with the majority of Group revenue derived from the UK. Our team of 600+ experts deliver cutting-edge solutions in cloud infrastructure, modern workplace management, and managed security services that enable our customers to innovate, protect, and scale their businesses.

We hold one of the UK's most extensive sets of Microsoft credentials, including Azure Expert MSP, Eight Solution Designations, 15 Advanced Specialisations including the new Copilot award and membership in Microsoft's Intelligent Security Association (MISA). As well as being a top-tier Broadcom Pinnacle Partner for VMware Cloud. Which means we can bring the latest technologies in hybrid cloud, data protection, and cyber resiliency to meet the evolving needs of our customers.

For further information about the Group, please visit www.iomart.com