Scottish cloud computing company Iomart recorded an adjusted half-year loss before tax of £2.5 million as a result of higher interest costs.
However, total revenue rose 25% to £77.7m for the six months ended 30 September, driven by the Atech acquisition which contributed £21.7m, though organic revenue fell £6m because of customer churn.
Adjusted EBITDA decreased to £12.9m from £17m in the prior year. Net debt rose to £109.6m.
Despite these figures, the Glasgow-based company highlighted improved customer renewal rates, positive net order bookings, and a strategic shift towards high-growth Microsoft-connected services, which now represent 30% of revenue.
The board anticipates an improved second half performance, with full-year results expected to be within market expectations, supported by £4m in annualised cost efficiencies.
In July the company said it would be seeking a new chief executive after Richard Lasttook on the role of executive chairman after the departure of CEO Lucy Dimes in May.
Today it said securing the right leadership is critical to driving the next phase of growth.
“This process will prioritise candidates with proven experience in scaling technology businesses, delivering sustainable profitability and navigating complex market transitions.”
The company said the UK cloud computing market has continued to demonstrate growth over the past six months, underpinned by accelerating digital transformation, heightened security requirements and the integration of AI-driven capabilities. Public cloud adoption remains dominant.
“We have seen customers adopt a more conservative approach to technology investment, prioritising essential services such as security, compliance and cost optimisation over discretionary projects.
“Outsourcing to managed service providers delivers capability to reduce capital expenditure and improve cost control.
“Iomart is offsetting margin pressure in commoditising areas such as licence consumption by accelerating our drive to ensure differentiation through high-value offerings such as security and managed services, optimising customer costs and compliance.
“We are now able to offer hybrid solutions, combining Microsoft public cloud services (Azure infrastructure, Modern Work, and Security) expertise, along with our strong heritage in private cloud infrastructure, making us well positioned in the market.”
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