Iomart Group’s Strategic Shift and Revenue Growth in FY25

The latest update is out from Iomart Group plc ( (GB:IOM) ).

Iomart Group plc announced its pre-close trading update for the year ending March 31, 2025, highlighting a strategic shift towards higher-growth cloud segments, marked by the acquisition of Atech. The company expects a 13% revenue growth to approximately £143 million, driven by acquisitions, despite a decline in its core business revenue. The acquisition of Atech has bolstered Iomart’s capabilities in Microsoft and managed security services, aligning with its long-term strategy to become a leading secure cloud services provider in the UK. However, the company faces challenges with declining margins in its traditional service lines and increased net debt due to M&A activities.

Spark’s Take on GB:IOM Stock

According to Spark, TipRanks’ AI Analyst, GB:IOM is a Neutral.

The overall score of 64 reflects a balanced view of Iomart Group plc’s strengths and weaknesses. The company’s robust financial performance and attractive valuation are significant strengths. However, the technical analysis indicates current bearish momentum, which poses a risk to stock appreciation in the short term. The absence of recent earnings call data and corporate events limits additional insights into future performance.

To see Spark’s full report on GB:IOM stock, click here.

More about Iomart Group plc

Iomart Group plc is a leading UK provider of secure cloud managed services, focusing on simplifying modern technology complexities for businesses. The company offers solutions in cloud infrastructure, modern workplace management, and managed security services, with a strong emphasis on Microsoft and VMware technologies.

YTD Price Performance: -64.03%

Average Trading Volume: 367,352

Technical Sentiment Signal: Buy

Current Market Cap: £29.85M

For an in-depth examination of IOM stock, go to TipRanks’ Stock Analysis page.