Iomart Group plc (IOM) AI Stock Analysis

• Market Cap: £20.13M
• Dividend Yield: 24.09%
• Average Volume (3M): 259.04K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.31
• Revenue Growth: 12.92%
• EPS Growth: -949.57%
• Country: UK
• Employees: 650
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): <0.01
• Shares Outstanding: 112,772,600
• 10 Day Avg. Volume: 512,989
• 30 Day Avg. Volume: 259,040
• PEG Ratio: <0.01
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 2.47
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £21.50
• Price Target Upside: 20.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: 21.50p ▲(20.45% Upside)

Iomart Group plc's overall stock score is primarily impacted by its poor financial performance, characterized by declining profitability and increased financial leverage. Technical analysis further indicates bearish trends, while valuation concerns are somewhat mitigated by a high dividend yield.

Iomart Group plc Business Overview & Revenue Model

Company Description

iomart Group plc provides managed cloud services in the United Kingdom and internationally. It operates in two segments, Cloud Services and Easyspace. The company offers a range of shared hosting and domain registration services to micro and SME companies, as well as managed cloud computing facilities and services. It also provides hybrid cloud solutions, such as private and public cloud, on-premises, and colocation; data management solutions, including data protection and disaster recovery; and connectivity solutions comprising managed wide area network (WAN), managed SD WAN, managed cloud firewall, and managed software defined perimeter. In addition, the company offers security solutions that consist of security monitoring, threat hunting, endpoint detection and response, external vulnerability scanning, threat intelligence, and cyber security incident response solutions. iomart Group Plc was founded in 1998 and is headquartered in Glasgow, the United Kingdom.

How the Company Makes Money

Iomart generates revenue primarily through its subscription-based model for cloud services and managed hosting solutions. The company's key revenue streams include monthly and annual contracts for cloud infrastructure services, colocation services in data centers, and managed IT services, which provide customers with ongoing support and maintenance. Iomart also earns revenue from professional services such as consulting, migration, and integration. Significant partnerships with technology providers and strategic alliances enhance its service offerings, enabling the company to attract a diverse clientele and drive recurring revenue. Additionally, the growth of digital transformation initiatives among businesses has contributed positively to Iomart's earnings.

Iomart Group plc Financial Statement Overview

Summary

Iomart Group plc is facing significant financial challenges. Despite a revenue growth of 12.99% in 2025, profitability has sharply declined with net profit margin turning negative. Increased financial leverage and declining cash flow metrics suggest heightened financial risk and liquidity issues.

Income Statement

The income statement shows a concerning decline in profitability. The company experienced a significant drop in net profit margin from 5.07% in 2024 to -38.42% in 2025, indicating a shift from profit to loss. The EBIT and EBITDA margins also turned negative, reflecting operational challenges. Despite a revenue growth rate of 12.99% in 2025, the negative margins overshadow this growth, suggesting inefficiencies or increased costs.

Balance Sheet

The balance sheet reveals increased financial leverage, with the debt-to-equity ratio rising from 0.47 in 2024 to 1.81 in 2025. This indicates higher reliance on debt financing, which could pose risks if not managed properly. The return on equity turned negative, reflecting the net losses. The equity ratio decreased, suggesting a reduced buffer for absorbing financial shocks.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by -35.10% in 2025, indicating potential liquidity issues. The operating cash flow to net income ratio decreased, reflecting reduced cash generation efficiency. However, the free cash flow to net income ratio remains positive, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	143.46M	143.46M	127.05M	115.64M	103.02M	111.88M
Gross Profit	56.09M	70.46M	69.58M	63.56M	61.31M	67.64M
EBITDA	-23.43M	-20.24M	35.80M	33.72M	37.21M	39.72M
Net Income	-55.12M	-55.12M	6.44M	7.00M	9.40M	10.20M
Balance Sheet
Total Assets	254.69M	254.69M	230.87M	218.68M	208.34M	228.48M
Cash, Cash Equivalents and Short-Term Investments	13.09M	13.09M	15.76M	13.82M	15.33M	23.04M
Total Debt	115.01M	115.01M	58.09M	53.58M	56.62M	77.66M
Total Liabilities	191.16M	191.16M	107.47M	98.12M	89.45M	111.91M
Stockholders Equity	63.53M	63.53M	123.40M	120.56M	118.89M	116.57M
Cash Flow
Free Cash Flow	13.77M	14.10M	24.13M	23.04M	24.52M	23.00M
Operating Cash Flow	22.02M	25.35M	35.94M	33.89M	35.46M	40.06M
Investing Cash Flow	-62.21M	-62.21M	-21.69M	-21.16M	-10.23M	-19.15M
Financing Cash Flow	39.01M	34.20M	-12.31M	-14.24M	-32.93M	-13.36M

Iomart Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IOM, the sentiment is Negative. The current price of 17.85 is below the 20-day moving average (MA) of 20.43, below the 50-day MA of 22.47, and below the 200-day MA of 37.63, indicating a bearish trend. The MACD of -1.32 indicates Positive momentum. The RSI at 37.22 is Neutral, neither overbought nor oversold. The STOCH value of 24.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:IOM.

Iomart Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BGO	76 Outperform	92.20M	-45.28	-13.94%	―	6.40%	70.78%
BKS	74 Outperform	141.27M	59.69	―	―	25.72%	290.00%
PCIP	60 Neutral	37.31M	858.33	―	―	25.15%	―
CNS	59 Neutral	49.94M	-39.00	2.67%	―	-5.43%	-292.31%
SYS	45 Neutral	14.11M	-6.82	-7.73%	―	-9.74%	79.93%
IOM	44 Neutral	£20.13M	9.41	-58.97%	24.09%	12.92%	-949.57%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Iomart Group plc Corporate Events

Iomart Group Releases 2025 Annual Report and Sets AGM Date

Iomart Group plc has released its Annual Report and Financial Statements for the year ending 31 March 2025 and announced the date for its Annual General Meeting (AGM) on 25 September 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, reinforcing its position in the secure cloud services industry.

The most recent analyst rating on (GB:IOM) stock is a Hold with a £24.00 price target. To see the full list of analyst forecasts on Iomart Group plc stock, see the GB:IOM Stock Forecast page.

Iomart Group Reports Mixed FY2025 Results Amid Strategic Expansion

Iomart Group plc reported a mixed financial performance for the year ended 31 March 2025, with a 13% increase in revenue to £143.5 million, driven by acquisitions and growth in certain service areas. However, the company faced challenges with a statutory loss before tax of £53.2 million due to a significant non-cash goodwill impairment charge. Despite these challenges, the acquisition of Atech has been a positive strategic move, contributing to revenue growth and enhancing the company’s service offerings. The company is focused on improving operational efficiency, reducing debt, and addressing customer churn to support future growth.

The most recent analyst rating on (GB:IOM) stock is a Hold with a £0.85 price target. To see the full list of analyst forecasts on Iomart Group plc stock, see the GB:IOM Stock Forecast page.

Iomart Group to Announce Year-End Financial Results

Iomart Group plc has announced that it will release its financial results for the year ended 31 March 2025 on 24 July 2025. The announcement will be accompanied by an in-person analyst presentation hosted by the Executive Chair and Chief Financial Officer. This event is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (GB:IOM) stock is a Hold with a £0.85 price target. To see the full list of analyst forecasts on Iomart Group plc stock, see the GB:IOM Stock Forecast page.

Iomart Group Secures £115 Million Refinancing and Announces Impairment Charge

Iomart Group plc has successfully refinanced its banking facilities with a new £115 million Revolving Credit Facility from existing lenders, extending to June 2027. This refinancing aligns with the company’s strategic objectives and includes a margin ratchet mechanism to reduce interest costs as leverage decreases. The company also announced an expected non-cash goodwill impairment charge in its upcoming full-year results, reflecting a strategic shift away from low-growth areas and accelerated customer churn. This charge will not affect operational performance or cash flows, and the company remains confident in its growth strategy supported by its lending partners.

The most recent analyst rating on (GB:IOM) stock is a Hold with a £24.00 price target. To see the full list of analyst forecasts on Iomart Group plc stock, see the GB:IOM Stock Forecast page.

Iomart Group PLC Announces Change in Voting Rights

Iomart Group PLC has announced a change in its voting rights structure due to an acquisition or disposal by Octopus Investments Limited. As of June 16, 2025, Octopus Investments holds 7.99% of the voting rights in Iomart, down from a previous position of 8.87%. This change in voting rights could impact the company’s governance and decision-making processes, potentially influencing its strategic direction and stakeholder interests.

The most recent analyst rating on (GB:IOM) stock is a Hold with a £0.85 price target. To see the full list of analyst forecasts on Iomart Group plc stock, see the GB:IOM Stock Forecast page.