Glasgow-based cloud computing provider iomart Group has reported a 25% surge in first-half revenues to £77.7 million, driven predominantly by its £57 million acquisition of Microsoft specialist Atech Cloud, as the company executes a strategic pivot toward high-growth public cloud and security services.
The revenue increase for the six months ended 30 September 2025 marks a significant turnaround for the AIM-listed firm, though the figures mask underlying challenges in its traditional business, which experienced a £6 million decline due to customer churn from the previous year.
Strategic Shift Toward Microsoft Ecosystem
The acquisition of Atech, completed on 1 October 2024, contributed £21.7 million to the half-year results and represents a fundamental repositioning of iomart’s business model. The deal brought 150 employees with 128 Microsoft certifications into the group, significantly enhancing its capabilities in Microsoft Azure infrastructure, modern workplace solutions, and managed security services.
The transformation is evident in the revenue mix. Microsoft-connected activities now account for approximately 30% of group revenue, a dramatic increase from just 7% two years ago. This shift follows iomart’s earlier acquisition of Oxford-based Microsoft Azure specialist Extrinsica Global in June 2023 for £4 million, which brought deep Azure expertise and 33 additional staff to the organisation.
Azure expert credentials drive competitive position
The enlarged group now holds significant Microsoft credentials, including Azure Expert MSP status—one of only 60 such partners globally—and all six Microsoft Solution Partner designations. These accreditations position iomart among the most highly certified managed service providers in the UK market.
Ryan Langley, who led Atech as CEO since 2021, has joined iomart’s senior leadership team as Group Chief Technology Officer, bringing his expertise to shape the group’s technology roadmap. “Joining iomart presents a fantastic opportunity to drive further innovation and growth,” Langley said at the time of the acquisition. “With our combined expertise, we’re well-positioned to deliver even greater value to our customers, enabling them to modernise their operations and leverage the full potential of cloud technology.”
Outlook and Strategic Priorities
Looking ahead, iomart’s leadership team—now led by Executive Chair Richard Last with support from CFO Scott Cunningham, Non-Executive Director Angus MacSween (the company’s founder), and Ryan Langley as CTO—is focused on improving operating efficiency, addressing churn in self-managed infrastructure segments, and increasing sales momentum in high-growth service areas.
The board is reviewing medium-term opportunities to enhance efficiency and reduce the cost base and debt position, including a review of the group’s data centre footprint and expansion of its Indian offshoring operations. The company operates 13 data centres across the UK and now employs approximately 650 staff serving a customer base of over 10,000 organisations.
In May 2025, iomart announced it would consolidate its cloud services under the Atech brand, reflecting the strategic importance of the acquisition and the company’s commitment to delivering integrated, customer-focused cloud solutions. The rebranding represents what the company described as “a further step in our transformation” aimed at simplifying its market presentation and enhancing stakeholder communication.
The company is scheduled to publish its full half-year results on 26 November 2025.
