Iomart Group plc (IOM) AI Stock Analysis

• Market Cap: £28.13M
• Dividend Yield: 21.5%
• Average Volume (3M): 474.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: 25.44%
• EPS Growth: -1877.56%
• Country: UK
• Employees: 650
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.02
• Shares Outstanding: 113,419,300
• 10 Day Avg. Volume: 510,043
• 30 Day Avg. Volume: 474,623
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: 18.00p ▼(-6.74% Downside)

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 supports a bearish outlook with indicators suggesting oversold conditions. While the high dividend yield is a positive aspect, it is overshadowed by the negative P/E ratio and financial instability.

Positive Factors

Revenue Growth

The company has shown a revenue growth rate of 12.99% in 2025, indicating a strong demand for its cloud services, which is a positive sign for long-term market position and business model resilience.

Subscription-Based Model

The subscription-based revenue model ensures a steady and predictable cash flow, enhancing financial stability and allowing for strategic planning and investment in growth opportunities.

Digital Transformation Trend

The increasing trend of digital transformation across industries supports long-term demand for Iomart's services, positioning the company well to capitalize on ongoing shifts towards cloud solutions.

Negative Factors

Declining Profitability

A significant drop in net profit margin from 5.07% in 2024 to -38.42% in 2025 indicates operational challenges and inefficiencies, which could hinder long-term financial health if not addressed.

Increased Financial Leverage

Higher reliance on debt financing increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth or weather economic downturns.

Cash Flow Decline

Declining free cash flow growth suggests potential liquidity issues, which could constrain the company's ability to fund operations and strategic initiatives, impacting long-term competitiveness.

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 faces significant financial challenges. Despite revenue growth, profitability has sharply declined, with net profit margins turning negative. Increased financial leverage raises financial risk, and negative trends in cash flow metrics suggest potential 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: 19.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 19.3 is below the 20-day moving average (MA) of 24.82, below the 50-day MA of 22.06, and below the 200-day MA of 26.59, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 28.99 is Positive, neither overbought nor oversold. The STOCH value of 1.20 is Positive, 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
BKS	74 Outperform	£173.54M	58.16	7.35%	―	26.09%	32.43%
BGO	69 Neutral	£76.98M	-37.74	-10.50%	―	6.40%	70.78%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CNS	56 Neutral	£44.81M	-35.00	-9.83%	―	-5.43%	-292.31%
SYS	51 Neutral	£14.64M	-7.23	-9.53%	―	-7.45%	78.23%
PCIP	50 Neutral	£33.69M	775.00	―	―	25.15%	―
IOM	39 Underperform	£28.13M	-0.51	-67.57%	21.50%	25.44%	-1877.56%

Iomart Group plc Corporate Events

Iomart Group Reports Revenue Growth and Strategic Shift in H1 FY26

Iomart Group plc reported a 25% increase in revenue for the first half of the financial year, driven by the acquisition of Atech and growth in Microsoft-connected activities. Despite a decline in traditional business revenue and a shift towards lower-margin services, the company achieved cost efficiency improvements and anticipates stronger performance in the second half, supported by positive order bookings and reduced customer churn.

The most recent analyst rating on (GB:IOM) stock is a Hold with a £20.50 price target. To see the full list of analyst forecasts on Iomart Group plc stock, see the GB:IOM Stock Forecast page.

Iomart Group Grants Share Options to Key Directors

Iomart Group plc announced the granting of options over ordinary shares to key directors, Richard Last and Scott Cunningham, under their respective share option agreements and performance share plans. The options, which have an exercise price of 1p each, will vest in 2028 based on performance conditions, resulting in a 5.23% shareholder dilution. This move is part of a broader incentive plan aimed at aligning the interests of management with those of shareholders, potentially impacting the company’s operational focus and market positioning.

The most recent analyst rating on (GB:IOM) stock is a Hold with a £20.50 price target. To see the full list of analyst forecasts on Iomart Group plc stock, see the GB:IOM Stock Forecast page.

Iomart Director Increases Shareholding with New Purchase

Iomart Group plc announced that Kathryn Lamont, a Non-Executive Director, has purchased 53,000 ordinary shares, increasing her total shareholding to 60,000 shares, representing 0.053% of the company’s total voting rights. This transaction, conducted on the London Stock Exchange’s AIM Market, reflects a personal investment by a board member, potentially signaling confidence in the company’s future prospects.

The most recent analyst rating on (GB:IOM) stock is a Hold with a £21.50 price target. To see the full list of analyst forecasts on Iomart Group plc stock, see the GB:IOM Stock Forecast page.

Iomart Director Increases Stake with Option Exercise

Iomart Group plc announced that Angus MacSween, a Non-Executive Director, has exercised 610,451 unapproved options and retained them as shares, increasing his beneficial interest to 18,198,834 Ordinary Shares, which represents 16.01% of the total voting rights in the company. This transaction, conducted off-market, highlights a significant increase in MacSween’s stake in the company, potentially signaling confidence in the company’s future prospects and stability, which could influence investor sentiment and market perceptions.

The most recent analyst rating on (GB:IOM) stock is a Hold with a £21.50 price target. To see the full list of analyst forecasts on Iomart Group plc stock, see the GB:IOM Stock Forecast page.

Iomart Group Announces Total Voting Rights and Share Capital

Iomart Group plc announced its total voting rights and share capital as of September 30, 2025. The company reported a total of 112,926,111 Ordinary Shares, with 140,773 held in the Employee Benefit Trust, resulting in 112,785,338 voting rights. This figure is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:IOM) stock is a Hold with a £21.50 price target. To see the full list of analyst forecasts on Iomart Group plc stock, see the GB:IOM Stock Forecast page.

Iomart Director Increases Stake with Share Purchase

Angus MacSween, Non-Executive Director of Iomart Group plc, has increased his stake in the company by purchasing 114,474 ordinary shares at a price of 18.8 pence per share. This transaction raises his beneficial interest to 15.59% of the total voting rights, potentially strengthening his influence within the company and signaling confidence in its future performance.

The most recent analyst rating on (GB:IOM) stock is a Hold with a £21.50 price target. To see the full list of analyst forecasts on Iomart Group plc stock, see the GB:IOM Stock Forecast page.

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.