iomart Group, the UK-based cloud services provider, has announced a pre-tax loss of £53.2 million for the year ending 31 March 2025, following a significant non-cash goodwill impairment charge and ongoing pressures in its core business.
Revenue for the group increased by 13% to £143.5 million, supported largely by the acquisition of Atech, which delivered robust annual revenue growth. However, the loss was principally driven by a £52.9 million impairment related to the group’s cloud services unit. Adjusted profit before tax declined sharply to £6.5 million from £15.0 million the previous year, and adjusted earnings per share fell by 65%.
The group’s cloud services division experienced a 7% revenue decline due to continued customer churn in specific managed service lines, though these losses were partly offset by growth from new contract wins and increased customer spending. Net debt more than doubled to £101.9 million, mainly attributed to the Atech acquisition.
Operating cash generation dipped, and iomart’s management chose not to pay a final dividend, citing a need to restore profitability and reduce debt before considering future payouts. Despite a stronger first-quarter order book for the new financial year and actions underway to realise £4 million of annualised cost savings, the company remains cautious about the economic outlook.
Looking ahead, the board is focused on enhancing operational efficiency, reducing costs and debt, and supporting growth areas such as public cloud and security services. Structural reviews, including data centre footprint and additional offshoring, are under consideration to address ongoing headwinds.
The Executive Chair, Richard Last, called the period one of “challenge and transformation” but expressed confidence that strategic actions and the Atech acquisition would position iomart for long-term growth.
This rewrite uses British English and is based on authoritative financial result summaries and market coverage.
