![\"Iomart\"](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2025\/11\/Iomart.png\")
Increased customer churn saw Scottish cloud computing firm Iomart fall to a loss during a year of transition.<\/p>\n
The Glasgow-based company, which has seen a number of executive changes in recent months, posted a rise in revenue to \u00a3154.9 million from \u00a3143.5m in the prior year, though recurring revenue decreased to 86% from 89%. <\/p>\n
Adjusted EBITDA saw a significant decline to \u00a325.6m from \u00a334.3m, and adjusted EBIT fell to \u00a35.2m from \u00a312.8m, resulting in an adjusted loss before tax of \u00a34m compared to a profit of \u00a36.5m in the previous year.<\/p>\n
Profitability improved in the second half of the year, with adjusted EBIT margin increasing to 3.9% compared with 2.8% in the first half.<\/p>\n
While a modest decline in full year revenue is expected in the current year, the board expects the benefits of cost base actions and an increased focus on higher-value, strategically aligned services to support an improved profit profile during the second half of FY27.<\/p>\n
Richard Last, executive chair, stated: \u201cFY26 has been a year of transition and repositioning for\u00a0Iomart. The group has taken decisive steps to redefine its operating model, enhance business unit accountability and position the business for sustainable long-term growth. <\/p>\n
\u201cI am pleased to report that we delivered on our \u00a34m annualised cost savings target, resulting in a structurally leaner and more focused organisation.<\/p>\n
\u201cThe financial results reflect the ongoing transition away from legacy technologies, with churn, particularly elevated in the final quarter, weighing on near-term performance. <\/p>\n
\u201cHowever, we have maintained strong cash generation, refreshed our banking facilities, and entered FY27 with a clearer strategic framework and more defined business unit structure to drive better performance and focus on distinct growth areas.<\/p>\n
\u201cOur focus for FY27 is clear, to rebuild growth momentum in higher-value cloud, security and data protection services, continue our cost optimisation programme, and leverage our strong VMware and Microsoft credentials as both markets undergo significant transition.\u201d<\/p>\n
Mr Last assumed his current role following the departure of Lucy Dimes as group CEO on 29 May last year and the company has appointed recruitment consultants to find a new CEO. He said the search will \u201ccommence in earnest once we have completed our strategic reshaping of the business\u201d.<\/p>\n
Craig MacKay, who joined Iomart in October 2023 andhas been serving as managing director of the Private Cloud and Datacentre businesses, has taken over as group chief operating officer. <\/p>\n
Scott Cunningham, chief financial officer, will step down from his role to take up a new opportunity outside the IT sector and will leave the business at the end of this month. The process to appoint the successor CFO is \u201cprogressing positively\u201d.<\/p>\n
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