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Iomart Group plc (IOM) AI Stock Analysis

GB:IOM

Iomart Group plc

(LSE:IOM)

Select Model
Rating:42Neutral
Price Target:GBX 11.50â–¼(-1.29% Downside)
Action:reiterated
Date:09/25/26

The score is held down primarily by weak financial performance—ongoing losses, significant margin compression, and materially higher leverage after equity erosion—despite the positive (but weakening) free cash flow. Technical indicators also point to a soft trend with negative momentum, while valuation remains challenged due to loss-making earnings and no dividend support.

Positive Factors
Recurring contracted servicesContract-based cloud, hosting, connectivity and managed-service revenue can provide greater visibility than purely transactional sales. Long-term customer relationships and infrastructure migration costs may support retention, helping Iomart preserve a recurring revenue base over the next several quarters.
Negative Factors
Higher leverage and weaker equityThe sharp rise in debt relative to equity has reduced financial flexibility and increased refinancing and covenant risk. With recent losses eroding the equity base, more cash may need to be directed toward servicing obligations, limiting investment capacity and tolerance for operating setbacks.

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

-60%-40%-20%0%20%40%GB:IOM-51.84%EWC+23.59%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
GBP 13.40M
Dividend Yield
―
Average Volume (3M)
205.01K
Price to Earnings (P/E)
-1.5
Beta (1Y)
-0.07
Revenue Growth
7.96%
EPS Growth
83.46%
Country
UK
Employees
634
Sector
Technology
Sector Strength
61
Industry
Software - Infrastructure

Iomart Group plc Business Overview & Revenue Model

Company Description

Established in 1998 and headquartered in Glasgow, UK, iomart Group plc delivers managed cloud services to clients both in the United Kingdom and internationally. Its operations are structured into two main divisions: Cloud Services and Easyspace. The...

How the Company Makes Money

Iomart makes money mainly by selling recurring infrastructure and managed services to business customers under contract (often billed monthly or annually). Key revenue streams include: (1) Cloud hosting and infrastructure services: fees for providing...

Iomart Group plc Financial Statement Overview

Summary

Overall fundamentals are weak: profitability deteriorated sharply (still operating/net losses), gross margin compressed materially, and leverage increased significantly as equity eroded. Positive operating and free cash flow is a notable offset, but cash flow has weakened versus prior periods and elevated debt raises financial risk.

Income Statement

34Negative

Balance Sheet

30Negative

Cash Flow

55Neutral
Financial statement breakdown
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue154.88M154.88M143.46M127.05M115.64M103.02M
Gross Profit41.19M41.19M70.46M69.58M63.56M61.31M
EBITDA24.04M25.60M-20.24M35.80M34.35M37.21M
Net Income-9.17M-9.17M-55.12M6.44M7.00M9.40M
Balance Sheet
Total Assets240.39M240.39M254.69M230.87M218.68M208.34M
Cash, Cash Equivalents and Short-Term Investments8.92M8.92M13.09M15.76M13.82M15.33M
Total Debt117.54M117.54M115.01M58.09M53.58M56.62M
Total Liabilities186.18M186.18M191.16M107.47M98.12M89.45M
Stockholders Equity54.21M54.21M63.53M123.40M120.56M118.89M
Cash Flow
Free Cash Flow7.91M7.91M14.10M24.13M23.04M24.52M
Operating Cash Flow14.88M14.88M25.35M35.94M33.89M35.46M
Investing Cash Flow-9.78M-9.78M-62.21M-21.69M-21.16M-10.23M
Financing Cash Flow-9.27M-9.27M34.20M-12.31M-14.24M-32.93M

Iomart Group plc Technical Analysis

Technical Analysis SentimentNegative
Last Price11.65

Price Trends

50DMA13.03Negative
100DMA13.52Negative
200DMA15.08Negative

Market Momentum

MACD-0.44Negative
RSI43.90Neutral
STOCH62.33Neutral

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 11.65 is below the 20-day moving average (MA) of 11.84, below the 50-day MA of 13.03, and below the 200-day MA of 15.08, indicating a bearish trend. The MACD of -0.44 indicates Negative momentum. The RSI at 43.90 is Neutral, neither overbought nor oversold. The STOCH value of 62.33 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 (61)

Financial Indicators

GB:IOM against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
GB:BYITGB:BYIT77OutperformGBP 1.04B20.2069.17%2.26%9.56%0.00%
GB:BKSGB:BKS66NeutralGBP 132.47M40.027.23%―11.32%8.80%
GB:SYSGB:SYS65NeutralGBP 29.72M-16.06-8.35%―7.66%8.26%
GB:CNSGB:CNS63NeutralGBP 78.11M32.9516.07%―24.53%―
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
GB:CLCOGB:CLCO56NeutralGBP 1.82M6.5058.02%―――
GB:IOMGB:IOM42NeutralGBP 13.40M-1.45-16.28%―7.96%83.46%

* Technology Sector Average

Performance Comparison

-50%0%50%100%GB:IOMGB:CLCOGB:CNSGB:SYSGB:BKSGB:BYITDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
GB:IOM and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
GB:IOMIomart Group plc11.80-13.00-52.42%
GB:CLCOCloudcoco Group Plc0.200.028.33%
GB:CNSCorero Network Security15.256.5074.29%
GB:SYSSysGroup plc35.5018.00102.86%
GB:BKSBeeks Financial Cloud Group Plc192.50-64.00-24.95%
GB:BYITBytes Technology Group Plc452.2090.4425.00%

Iomart Group plc Corporate Events

Business Operations and StrategyShareholder Meetings

Iomart shareholders approve all resolutions at 2026 AGM

Positive
Sep 25, 2026

Iomart Group plc, a leading UK secure cloud managed services provider, focuses on cloud infrastructure, modern workplace solutions and managed security for business customers, leveraging a broad set of Microsoft, VMware and Commvault partnerships to...

Business Operations and StrategyFinancial DisclosuresRegulatory Filings and ComplianceShareholder Meetings

Iomart Publishes 2026 Annual Report and Sets Date for AGM

Positive
Sep 2, 2026

Iomart Group plc has published its Annual Report and Financial Statements for the year ended 31 March 2026 and distributed them to shareholders, alongside the notice of its upcoming Annual General Meeting in London on 25 September 2026. Shareholders...

Business Operations and StrategyExecutive/Board Changes

Iomart appoints NatWest veteran Matthew Waymark as new CFO

Positive
Aug 14, 2026

Iomart Group plc, a secure cloud services provider listed on AIM, has appointed Matthew Waymark as Chief Financial Officer and Board Director, effective 14 September 2026. Waymark, a chartered accountant who previously held senior finance roles at Na...

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: Sep 25, 2026