Secure cloud services provider Iomart Group plc (IOM.L) on Tuesday reported a narrower loss for fiscal 2026 compared with last year, but it slipped to loss on adjusted basis with weak adjusted EBITDA.
Further, the group said it enters fiscal 2027 with a lower level of recurring revenue, and expects a modest decline in annual revenues.
On the LSE, shares of Iomart were losing 18.61 percent, changing hands at 14.65 pence.
For the financial year 2026, loss before tax narrowed to 13.64 million pounds from loss of 53.22 million pounds a year earlier. Loss per share was 8.1 pence, compared with a loss of 49.0 pence last year.
On an adjusted basis, the group slipped to a loss before tax of 4.0 million pounds from a profit of 6.5 million pounds in the previous year. Adjusted loss per share was 1.6 pence, versus profit of 3.4 pence per share a year prior.
Adjusted EBIT fell to 5.2 million pounds from 12.8 million pounds in fiscal 2025.
Adjusted EBITDA dropped to 25.56 million pounds from 34.31 million pounds a year before, reflecting lower recurring revenues.
Annual revenue rose 8 percent to 154.89 million pounds from 143.46 million pounds last year.
Recurring revenue represented 86% of the total, compared with 89% last year.
On an organic basis, group revenue declined, driven by customer churn in private cloud managed services and a lower opening run-rate.
The firm did not announce any dividend payment for the year, while last year it paid 4.8 million pounds.
Looking ahead, the company said it enters fiscal 2027 with a lower level of recurring revenue reflecting elevated churn in the final months of the financial year.
The company expects an improved profit profile in the second half of fiscal 2027 with cost-base actions and a shift to higher-value, strategically aligned services.
"Our 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," Executive Chair Richard Last said.
The Broadcom VMware licensing transition to April 2027 is expected to generate significant pipeline opportunity.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
For comments and feedback contact: editorial@rttnews.com
Business News
June 19, 2026 16:46 ET Major central banks continued to dominate the economic news flow this week too, led by the Federal Reserve, as they announced their latest policy decisions. The Federal Reserve policy session was in focus as it was the first to be led by the new chief Kevin Warsh. In Europe, central banks of the U.K. and Switzerland announced their rate decisions. In Asia, the Bank of Japan drew attention for its policy moves, while data out of China threw some light on the state of the economy.