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Iomart Group PLC (GB:IOM)
LSE:IOM

Iomart Group plc (IOM) AI Stock Analysis

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Iomart Group plc

(LSE:IOM)

Rating:66Neutral
Price Target:
Iomart Group plc's stock shows strong financial performance and attractive valuation, indicating potential for growth and income. However, the bearish technical indicators suggest caution in the short term, as the stock may face downward pressure. The recent strategic brand unification under 'Atech' is a positive step towards strengthening market presence.

Iomart Group plc (IOM) vs. iShares MSCI United Kingdom ETF (EWC)

Iomart Group plc Business Overview & Revenue Model

Company DescriptionIomart Group plc (IOM) is a United Kingdom-based company that provides managed cloud computing and IT hosting services. Operating primarily in the technology sector, Iomart offers a comprehensive range of services including cloud hosting, data center management, and IT infrastructure solutions. The company caters to a diverse client base, supporting businesses in their digital transformation journeys by providing secure, scalable, and reliable cloud-based solutions.
How the Company Makes MoneyIomart Group plc generates revenue through a variety of streams, primarily centered around its cloud computing and IT hosting services. The company earns income by providing managed cloud services, which include the hosting and management of applications, servers, and data centers for businesses. Additionally, Iomart offers colocation services where clients can rent space for their servers and other computing hardware within Iomart's state-of-the-art data centers. Revenue is also derived from providing IT consultancy and support services, which help businesses optimize their IT infrastructure. Significant partnerships with leading cloud technology providers enhance Iomart's offerings and contribute to its revenue, enabling the company to deliver comprehensive solutions tailored to specific business needs.

Iomart Group plc Financial Statement Overview

Summary
Iomart Group plc presents a stable financial performance with consistent revenue growth and strong cash flow generation. While the company maintains solid margins and a healthy capital structure, the declining net profit margin and moderate leverage suggest areas for strategic improvement to enhance profitability and shareholder returns. Overall, the company is well-positioned in the software industry, with opportunities for optimizing financial efficiency.
Income Statement
75
Positive
Iomart Group plc has demonstrated steady revenue growth over the years, with a notable increase of 9.9% from 2023 to 2024. The company maintains a strong gross profit margin at approximately 54.7% and an EBIT margin of 10.3%, which reflects efficient cost management. However, the decline in net profit margin from 6% in 2023 to 5.1% in 2024 indicates room for improvement in managing expenses or other costs impacting net income.
Balance Sheet
70
Positive
The company's balance sheet shows a healthy equity ratio of 53.4%, indicating a solid capital structure with good asset management. However, the debt-to-equity ratio of 0.47 suggests moderate leverage, which could be a concern if not managed well. The return on equity (ROE) of 5.2% is relatively low, suggesting potential inefficiencies in generating profits from shareholder equity.
Cash Flow
80
Positive
Iomart Group plc exhibits strong cash flow management, with a free cash flow growth of 4.7% from 2023 to 2024. The operating cash flow to net income ratio of 5.58 indicates robust cash generation relative to net income. Additionally, the free cash flow to net income ratio of 3.75 suggests efficient conversion of revenue into free cash flow, supporting future investments and debt servicing.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue126.96M127.05M115.64M103.02M111.88M112.58M
Gross Profit56.75M69.58M63.56M61.31M67.64M68.49M
EBITDA30.73M35.80M33.72M37.21M39.72M43.72M
Net Income3.40M6.44M7.00M9.40M10.20M13.65M
Balance Sheet
Total Assets294.39M230.87M218.68M208.34M228.48M224.95M
Cash, Cash Equivalents and Short-Term Investments67.21M15.76M13.82M15.33M23.04M15.50M
Total Debt115.28M58.09M53.58M56.62M77.66M73.14M
Total Liabilities173.53M107.47M98.12M89.45M111.91M112.95M
Stockholders Equity120.86M123.40M120.56M118.89M116.57M111.99M
Cash Flow
Free Cash Flow21.72M24.13M23.04M24.52M23.00M19.46M
Operating Cash Flow29.94M35.94M33.89M35.46M40.06M36.62M
Investing Cash Flow-17.41M-21.69M-21.16M-10.23M-19.15M-21.27M
Financing Cash Flow44.01M-12.31M-14.24M-32.93M-13.36M-9.92M

Iomart Group plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price28.90
Price Trends
50DMA
28.06
Positive
100DMA
32.58
Negative
200DMA
59.83
Negative
Market Momentum
MACD
0.11
Positive
RSI
47.81
Neutral
STOCH
40.23
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 28.9 is below the 20-day moving average (MA) of 29.64, above the 50-day MA of 28.06, and below the 200-day MA of 59.83, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 47.81 is Neutral, neither overbought nor oversold. The STOCH value of 40.23 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBSCT
76
Outperform
£3.44B27.4347.63%0.52%10.75%10.61%
GBPAY
75
Outperform
£597.26M31.9918.01%1.70%43.88%28.50%
73
Outperform
£7.17B25.9350.39%1.21%11.68%21.35%
GBRMV
72
Outperform
£6.07B32.27256.58%1.14%7.02%-0.37%
GBIOM
66
Neutral
£32.59M9.542.80%9.00%1.47%-49.08%
63
Neutral
£571.22M24.42-6.00%2.36%3.52%-29.29%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:IOM
Iomart Group plc
28.90
-92.95
-76.28%
GB:PAY
Paypoint
851.00
242.65
39.89%
GB:RMV
Rightmove
787.00
262.28
49.98%
GB:SCT
Softcat
1,725.00
7.46
0.43%
GB:AUTO
Auto Trader
821.20
33.92
4.31%

Iomart Group plc Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Iomart Group Unifies Cloud Services Under ‘Atech’ Brand
Positive
May 2, 2025

Iomart Group plc has announced a strategic move to consolidate its cloud services under the single brand ‘Atech,’ marking a significant milestone in its service evolution. This brand unification aims to enhance the company’s market approach, simplify its brand architecture, and better communicate its value proposition, aligning with its growth strategy to become the UK’s leading secure cloud services provider.

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.

Regulatory Filings and Compliance
Iomart Group Updates Share Capital and Voting Rights
Neutral
May 1, 2025

Iomart Group plc announced that as of April 30, 2025, the total number of ordinary shares stands at 112,820,662, with 112,679,889 voting rights available. This update is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules, impacting how they manage their investments and interests in the company.

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.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Iomart Group’s Strategic Shift and Revenue Growth in FY25
Neutral
Apr 23, 2025

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.

Other
Iomart Group PLC Announces Change in Major Holdings
Neutral
Mar 13, 2025

Iomart Group PLC, a UK-based company, has announced a change in its major holdings. Octopus Investments Limited, based in London, has reduced its voting rights in Iomart from 9.99% to 8.87%. This change was triggered by an acquisition or disposal of voting rights, impacting the company’s shareholder structure.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Iomart Group Announces Strategic Shift Amid Revenue Mix Change
Neutral
Feb 7, 2025

Iomart Group plc announced a trading update for the year ending March 31, 2025, highlighting the successful acquisition of Atech, which has strengthened its position as a secure cloud services provider in the UK. While new order bookings remain strong, the company faces challenges with increased customer churn and lower renewal levels in legacy services. This shift in revenue mix is expected to result in adjusted EBITDA falling approximately 10% below market expectations, though revenue is anticipated to meet forecasts. The company remains committed to its ‘bigger, better, bolder’ strategy, aiming for long-term growth by focusing on higher growth segments and optimizing its infrastructure costs.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 02, 2025