LONDON (ShareCast) - (Sharecast News) - Cloud services business Iomart warned on Friday that FY adjusted pre-tax profits were expected to be approximately 10% below current market expectations.
With growth in newer offerings offsetting legacy business declines, Iomart stated it continues to expect FY revenues to be broadly in line with market expectations.

However, Iomart stated an accelerated shift in revenue mix towards higher growth, lower margin services has resulted in adjusted underlying earnings coming in approximately 10% below current market expectations.

The AIM-listed group added that its depreciation, amortisation and interest charges were "predictable", meaning these impacts will similarly flow through to adjusted EBIT and adjusted PBT. The board expects net debt levels at 31 March to broadly align with current market expectations.

Chief executive Lucy Dimes said: "We have seen continued positive new order bookings across both the Iomart and Atech offerings and are starting to see the power of the combined business flow through.

"However, transformation takes time, and churn within legacy offerings continues to present a headwind. We will continue to optimise our cost structure, while pivoting the portfolio to higher growth segments, and are confident that we have the right team and offerings to achieve our bold ambitions."

As of 0945 GMT, Iomart shares had sunk 27.07% to 43.32p.











Reporting by Iain Gilbert at Sharecast.com

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