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A trading update from iomart, ahead of the release of full FY25 results in June, shows the positive impact of the acquired Atech business.
Atech (which was acquired back in October) added £21m to the revenue line with an additional £4m coming from smaller acquisitions made in the previous financial year. Stripping out the impact of acquisitions, revenue declined by 7% (£9m) to £143m. iomart has previously reported that “elevated churn” among its base of self-managed customers, and aspects of private cloud managed services, have hit the top line.
In terms of profits, iomart has maintained costs at approximately the same level as FY24, however, customer losses in more margin-rich areas (e.g., dedicated servers) contributed to a reduction in adjusted EBITDA from £37.7m to £34.3m.
iomart is moving through a period of transition as it seeks to reposition itself as a hybrid cloud services provider with strong cyber offerings. The Atech acquisition has been pivotal in that strategic shift and its contributions are clear. However, the shift is not pain-free, and the numbers show iomart is taking the hits as it continues to transition into those growth areas that should provide more resilience and long-term potential in time.
Posted by: Kate Hanaghan at 10:05
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security
tradingupdate
hybridcloud