Iomart Group plc (IOM) AI Stock Analysis

• Market Cap: £24.58M
• Dividend Yield: 19.68%
• Average Volume (3M): 628.30K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.31
• Revenue Growth: 12.92%
• EPS Growth: -948.18%
• Country: UK
• Employees: 650
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Infrastructure
• EPS (TTM): <0.01
• Shares Outstanding: 112,772,600
• 10 Day Avg. Volume: 100,575
• 30 Day Avg. Volume: 628,303
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £24.00
• Price Target Upside: 9.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• 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 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 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

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

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

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.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	126.96M	127.05M	115.64M	103.02M	111.88M	112.58M
Gross Profit	56.75M	69.58M	63.56M	61.31M	67.64M	68.49M
EBITDA	30.73M	35.80M	33.72M	37.21M	39.72M	43.72M
Net Income	3.40M	6.44M	7.00M	9.40M	10.20M	13.65M
Balance Sheet
Total Assets	294.39M	230.87M	218.68M	208.34M	228.48M	224.95M
Cash, Cash Equivalents and Short-Term Investments	67.21M	15.76M	13.82M	15.33M	23.04M	15.50M
Total Debt	115.28M	58.09M	53.58M	56.62M	77.66M	73.14M
Total Liabilities	173.53M	107.47M	98.12M	89.45M	111.91M	112.95M
Stockholders Equity	120.86M	123.40M	120.56M	118.89M	116.57M	111.99M
Cash Flow
Free Cash Flow	21.72M	24.13M	23.04M	24.52M	23.00M	19.46M
Operating Cash Flow	29.94M	35.94M	33.89M	35.46M	40.06M	36.62M
Investing Cash Flow	-17.41M	-21.69M	-21.16M	-10.23M	-19.15M	-21.27M
Financing Cash Flow	44.01M	-12.31M	-14.24M	-32.93M	-13.36M	-9.92M

Iomart Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 21.85 is below the 20-day moving average (MA) of 22.47, below the 50-day MA of 25.84, and below the 200-day MA of 44.15, indicating a bearish trend. The MACD of -1.13 indicates Negative momentum. The RSI at 36.89 is Neutral, neither overbought nor oversold. The STOCH value of 34.78 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
BKS	74 Outperform	£146.50M	61.97	6.33%	―	25.72%	290.00%
IOM	66 Neutral	£24.58M	9.41	-58.97%	19.68%	12.92%	-948.18%
BGO	62 Neutral	£67.99M	―	-13.63%	―	12.63%	59.24%
Sector *	61 Neutral	$35.45B	7.89	-10.11%	1.88%	8.47%	-9.45%
CNS	60 Neutral	£49.94M	139.29	2.72%	―	6.95%	―
PCIP	60 Neutral	£34.56M	―		―	20.56%	83.30%
SYS	45 Neutral	£13.94M	―	-9.53%	―	-9.74%	80.02%

Iomart Group plc Corporate Events

Iomart Group Unifies Cloud Services Under ‘Atech’ Brand

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.

Iomart Group Updates Share Capital and Voting Rights

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.

Iomart Group’s Strategic Shift and Revenue Growth in FY25

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.

Iomart Group PLC Announces Change in Major Holdings

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.

Iomart Group Announces Strategic Shift Amid Revenue Mix Change

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.