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iomart Group logo

iomart Group

IOM.L
20
Software - Infrastructure · Technology
Price
12.53 GBp
+0.07 (+0.60%)
Market Cap
14.2M GBp
Exchange
London Stock Exchange
Winston Score
20
Winston is worried
Weak fundamentals across most pillars.
Data as of Aug 9, 2026 · filings through Mar 31, 2026

Share count rising — dilution

+1.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 111.9M (2022) → 113.1M (2026)

iomart Group plc is a UK-based cloud computing and managed services company. It helps businesses store data, run websites, and manage their IT systems without having to own expensive hardware themselves. Its customers range from small businesses to large enterprises and public sector organizations across the United Kingdom.

The company makes money by charging monthly fees for services like cloud hosting, managed security, and data backup — a subscription-style model that provides recurring revenue. iomart operates almost entirely in the UK, making it a regional player rather than a global one, and its long-term customer contracts give it some stability. However, the company's negative operating margin and low returns on capital suggest it is currently struggling to turn revenue into profit, and its main challenge is competing against much larger cloud providers like Amazon Web Services and Microsoft Azure, which have significant cost and scale advantages.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-5.4% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+91.6% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

Declining (-100% vs prior year)

0.0% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

17.1%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$9M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

iomart Group's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
24.5%
Thin — 24.5% gross margin
Operating Margin
-1.9%
Losing money on operations — -1.9%
ROCE
-1.0%
Weak — -1.0% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
+8.0%
Steady sales growth (+8.0% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
1/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
5.1%
Thin free cash flow (5.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
1.87
Elevated debt (1.87)
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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