The group, formerly known as Adept 4, said it had seen ‘encouraging early progress’ since its restructuring following the acquisition of technology firm Cloudcoco in October 2019.
At the time of the acquisition, shareholders voted for a change in the company's name to CloudCoCo Group plc, while the board took to establishing a rebranding programme.
Today, the IT provider reported revenue at £4.43m for the period, up from £4.18m in the first half of 2019 and up 44% against the previous six-month period’s £3.08m.
Recurring revenue of £2.79m, was up 31% on the previous six-month period (H2 2019: £2.13m, H1 2019: £3.02m), a key focus for the Group in becoming a sustainable growth business.
Total contract value signed for the period was £3.33m, 158% more than £1.29m in H2 2019, which the group said reflects early success in prioritising multi-year over single-year deals.
The group bounced back to report positive EBITDA of £68k from a loss of £250k in the previous six-month period (H2 2019: loss of £250k, H1 2019: profit of £15k).
Pre-tax loss for the period narrowed to £1.57m from £1.21m in 2019 whilst the group held assets of £5.69m as at 31 March 2020 (H2 2019 negative £1.11m, H1 2019 £2.92m).
Shares in Cloudcoco Group were trading 93.33% higher at 1.45p on Tuesday morning.
The group said that despite experiencing industry-wide headwinds it had seen ‘resilient trading’ post-period during the pandemic and that it expects to see continued demand.
It said that growing recurring revenue and margin, together with cost reduction measures, will ensure that the business is well-positioned to withstand the current situation.
“We expect demand for our products and services to evolve as organisations seek to adapt to the 'new normal’,” said Mark Halpin, CEO of CloudCoCo.
He added, “IT and communications infrastructure is increasingly extending beyond physical premises and with that comes fresh challenges, particularly around cyber security and collaborative working practices.
We believe that through our expert skill set and deep partner relationships with industry-leading providers, we are well-positioned to help organisations meet these challenges.
While we should not lose sight of the fact we are still in the early stages of our turnaround story and recognise we are operating against a backdrop of unprecedented uncertainty, we have a talented team in place and are already seeing benefits from the hard work done thus far, which gives us confidence that our strategy is the right one."
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