CloudCoCo Group hails ‘another period of significant progress’ in 1H21
(CLCO ) Group has reported “another period of significant progress” with trading EBITDA in the six months ended 31 March 2021 up 435% year-on-year from the prior 2020 period.
In its half-year results, CloudCoCo, which provides IT and communications solutions to businesses and public sector organisations in the UK, said it has delivered “a resilient performance” with notable revenue and total contract value increases from 2H20.
Over the period, trading EBITDA increased by 435% to £0.364m (1H20: £0.068m) while revenue came to £4.14m (1H20: £4.43m) and pre-tax loss was at £0.67m (1H20:£1.57).
Operationally, the firm secured multi-year contract extensions with Vantage Motor Group and Baywater Healthcare, respectively, two of the company’s largest clients by revenue.
In ‘Value Added Resale’, demand for its collaboration and cyber security solutions remained strong ‘in line with the rise in remote working and the need to do so safely and securely.’
The group also launched a new website at the start of FY20 where traffic to the website in March 2021 was up 42% versus October 2020 while its LinkedIn followers grew by 11%.
The Company said it continues to improve its cash position and as at 31 March 2021, the Group's cash at bank had increased £0.30m year-on-year to £0.57m compared to £0.27m in 1H20, with the company maintaining an £0.4m undrawn working capital facility.
Post-period, the company said it continues to see demand for its services as well as further progress in developing its partnership ecosystem. In particular, CloudCoCo has become one of the few UK partners to be listed on the AWS (Amazon Web Services) Marketplace for Dynamic Cloud Security solutions while Mitel awarded the Group 'Gold' partner status.
Shares in CloudCoCo Group have increased by 55% in value since the beginning of the year. The stock was trading 10.34% higher this morning at 1.6p following the announcement.
‘With an increasing pipeline of opportunities despite the ongoing impact of Covid, we remain confident in our prospects for the second half, facilitated by the easing of restrictions,’ it said.
The company said progress through the next phase in the group’s development will be bolstered by the post-period hire of Nigel Redwood as Strategic Consultant. “Nigel has a track record of accelerating growth - particularly in the listed IT managed services space - and recognises the importance of fostering a strong company ethos and culture,” it noted.
Commenting on the group’s half-year results, Mark Halpin, CEO of CloudCoCo stated:"I am proud to report another period of significant progress for the Group, with execution against all of our company objectives and continued growth in our profitability, with Trading EBITDA in the first half up 435% year on year on the prior period. We have delivered a resilient performance in the period, with notable revenue and total contract value increases on the second half of 2020, despite the continued impact of Covid on the trading environment.
He added, “The business is in good health, operationally and in the pipeline of opportunities ahead of us. There will continue to be challenges to overcome, but we will meet them head on and remain confident of making further progress in the second half and beyond.”
In a separate statement released this morning, CloudCoCo announced that Mike Lacey will be stepping down as CFO of the group. As a result, Darron Giddens, who was previously Group Finance Director, will now step up as CFO to the Board with immediate effect.
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