Scottish cloud computing firm Iomart Group has refinanced its banking facilities and has delayed its final results announcement.
The new revolving credit facility, totalling £115 million, has been secured from a syndicate of the group’s existing lenders, comprising The Royal Bank of Scotland, HSBC UK, and Clydesdale Bank (trading as Virgin Money).
The facility extends to 30 June 2027 and includes financial covenants, limited to debt cover and interest cover, which are aligned with the group’s current leverage position and strategic objectives.
The agreement enables the group to reduce interest costs as it deleverages.
Iomart, which last month announced a rebranding to Atech, has pushed back its full-year results announcement from this month to late July.
It parted company with chief executive Lucy Dimes on 30 May and chairman Richard Last became executive chair.
In today’s statement the company confirmed that there has been no material change to trading since the pre-close trading update issued on 23 April .
In the forthcoming full-year results, the group expects to recognise a non-cash exceptional goodwill impairment charge relating to the iomart Cloud Services Cash Generating Unit (CGU).
This reflects both the strategic shift away from low growth, heritage product areas and the previously disclosed accelerated customer churn in certain areas of this CGU.
Subject to audit, the impairment is expected to be approximately two-thirds of the CGU’s current goodwill value of £83.1 million. This non-cash charge has no impact on the group’s operational performance or cash flows.
Scott Cunningham, chief financial officer, said: “We are delighted to announce the completion of this refinancing, which provides iomart with flexibility and supports the execution of our growth strategy.
“We appreciate the continued support of our lending partners, reflecting their confidence in the strength and resilience of our business.”
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