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Iomart Group PLC (GB:IOM)
LSE:IOM
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Iomart Group plc (IOM) AI Stock Analysis

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GB:IOM

Iomart Group plc

(LSE:IOM)

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Neutral 44 (OpenAI - 5.2)
Rating:44Neutral
Price Target:
12.50 p
▼(-17.49% Downside)
Action:Reiterated
Date:06/25/26
The score is held down primarily by weakened financial performance—continued operating/net losses, margin compression, and materially higher leverage after equity erosion—despite positive (but weakening) free cash flow. Technicals add pressure as the stock trades below key moving averages with negative MACD, while oversold readings only partially mitigate. Valuation is difficult to support with a negative P/E and no dividend yield data.
Positive Factors
Recurring contract-based cloud & managed services
A subscription and contract-based model creates durable, predictable revenue streams and higher customer retention versus one-off services. This supports steady cash generation, easier capacity planning, and clear upsell paths (managed/security services) that compound value over multiple quarters.
Negative Factors
Elevated leverage after equity erosion
A material rise in leverage following equity erosion reduces financial flexibility and raises refinancing, interest and covenant risk. With higher debt relative to equity, the company has less capacity to invest or absorb shocks, making multi-quarter recovery plans contingent on debt management.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring contract-based cloud & managed services
A subscription and contract-based model creates durable, predictable revenue streams and higher customer retention versus one-off services. This supports steady cash generation, easier capacity planning, and clear upsell paths (managed/security services) that compound value over multiple quarters.
Read all positive factors

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

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. ...
How the Company Makes Money
Iomart primarily makes money by selling recurring infrastructure and IT operations services to business customers under subscription and contract-based arrangements. Key revenue streams typically include: (1) Cloud services: recurring fees for pro...

Iomart Group plc Financial Statement Overview

Summary
Overall financials are pressured: profitability deteriorated sharply with operating and net losses in 2025–2026 and a notable gross margin compression. The balance sheet has weakened as leverage rose materially (debt about 2.2x equity in 2026) after equity erosion, increasing financial risk. Offsetting this somewhat, operating cash flow and free cash flow remained positive in 2025–2026, though both weakened versus prior levels.
Income Statement
34
Negative
Balance Sheet
30
Negative
Cash Flow
55
Neutral
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue154.88M143.46M127.05M115.64M103.02M
Gross Profit41.19M70.46M69.58M63.56M61.31M
EBITDA25.60M-20.24M35.80M33.72M37.21M
Net Income-9.17M-55.12M6.44M7.00M9.40M
Balance Sheet
Total Assets240.39M254.69M230.87M218.68M208.34M
Cash, Cash Equivalents and Short-Term Investments8.92M13.09M15.76M13.82M15.33M
Total Debt117.54M115.01M58.09M53.58M56.62M
Total Liabilities186.18M191.16M107.47M98.12M89.45M
Stockholders Equity54.21M63.53M123.40M120.56M118.89M
Cash Flow
Free Cash Flow7.91M14.10M24.13M23.04M24.52M
Operating Cash Flow14.88M25.35M35.94M33.89M35.46M
Investing Cash Flow-9.78M-62.21M-21.69M-21.16M-10.23M
Financing Cash Flow-9.27M34.20M-12.31M-14.24M-32.93M

Iomart Group plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price15.15
Price Trends
50DMA
13.49
Negative
100DMA
15.88
Negative
200DMA
16.17
Negative
Market Momentum
MACD
-0.03
Positive
RSI
39.60
Neutral
STOCH
19.31
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 15.15 is above the 20-day moving average (MA) of 14.39, above the 50-day MA of 13.49, and below the 200-day MA of 16.17, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 39.60 is Neutral, neither overbought nor oversold. The STOCH value of 19.31 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
£901.07M18.3264.69%2.60%1.58%-6.06%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
60
Neutral
£153.12M160.072.17%0.29%11.02%-59.83%
54
Neutral
£21.35M-11.54-8.35%7.66%8.26%
52
Neutral
£59.54M25.3616.07%24.53%
44
Neutral
£15.22M-1.65-16.28%5.66%7.96%83.46%
43
Neutral
£1.54M5.5058.02%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:IOM
Iomart Group plc
13.40
-6.80
-33.66%
GB:CLCO
CloudCoCo Group
0.17
-0.08
-34.00%
GB:CNS
Corero Network Security
11.63
2.38
25.68%
GB:SYS
SysGroup
25.50
9.75
61.90%
GB:BKS
Beeks Financial Cloud Group Plc
222.50
26.50
13.52%
GB:BYIT
Bytes Technology Group Plc
391.60
-12.28
-3.04%

Iomart Group plc Corporate Events

Business Operations and StrategyFinancial Disclosures
Iomart posts revenue growth but profit squeeze as it pivots to higher-value cloud services
Negative
Jun 23, 2026
Iomart Group plc, a leading UK secure cloud services provider, focuses on cloud infrastructure, modern workplace management and managed security, underpinned by strong Microsoft and VMware partnerships. Its 600-plus specialists target businesses s...
Business Operations and StrategyFinancial Disclosures
Iomart Schedules Full-Year Results and Analyst Briefing
Positive
Jun 22, 2026
Iomart Group plc, a leading UK secure cloud managed services provider with extensive Microsoft, VMware, and Commvault partnerships, focuses on cloud infrastructure, workplace management, and managed security for business customers. Its strong tech...
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: Jun 25, 2026