TIDMCLCO
RNS Number : 2575E
Cloudcoco Group PLC
27 October 2022
The information contained within this announcement is deemed by
CloudCoCo to constitute inside information pursuant to Article 7 of
EU Regulation 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 as amended.
27 October 2022
CloudCoCo Group plc
("CloudCoCo" or the "Group")
Year End Trading Update
Strong strategic and commercial progress and positive
outlook
CloudCoCo (AIM: CLCO), a leading UK provider of Managed IT
services and communications solutions to private and public sector
organisations, is pleased to provide an update on its progress for
the year ended 30 September 2022 ("FY22").
Highlights:
-- Step change in sales, with revenue expected to be no less
than GBP24.0m (FY21: GBP8.0m) as a result of the previously
announced acquisitions, now successfully integrated
-- Trading EBITDA(1) expected to be in the region of GBP1.0m
(FY21: GBP745k)
-- Launch of 'Project IGNITE' investment programme to enhance
sales capabilities
-- Opening of new, more modern headquarters in Leeds and office
locations in Warrington and Bournemouth
-- Confident of continued strong sales growth and improved
profitability in FY23
The Group delivered a strong revenue performance in the period,
with positive trading momentum from the first half continuing
through to the second. We continued to make good progress in
signing new business on multi-year terms, hardware sales were ahead
of expectations, and there were encouraging early signs of
cross-selling success between the acquired companies with our first
managed services customers taking data centre solutions and vice
versa. This performance, alongside the action taken to put the
Group on a sound footing in the first half, led to trading EBITDA
being up significantly on the prior year.
Operationally, we made excellent progress, successfully
completing the integration of the four acquired businesses.
Pleasingly, we continued to see further improvements in the
performance of the loss-making Connect business acquired in October
2021, as the year progressed further to it reaching monthly
breakeven in March 2022 as announced in the Group's interim
results.
To support the next phase of the Group's growth, we launched a
new programme of investment in the second half which has continued
into the new financial year. Known internally as 'Project IGNITE',
the programme comprises the implementation of additional sales
systems and the introduction of new talent in our new business,
mobile, alliances, sales academy, retention, and ecommerce
teams.
In line with this initiative, CloudCoCo's primary focus in the
new financial year will be on driving organic growth. At the same
time, the Board will continue to actively seek opportunities to
enhance capabilities and accelerate growth through selective
acquisitions.
While remaining cognisant of the inflationary environment in the
near term, we continue to work with our customers to help them
navigate rising third-party vendor costs and new business pipelines
across the Group are growing at a healthy rate. We are confident of
delivering continued strong sales growth and improved profitability
in FY23, weighted towards the second half in view of the
investments we are making in the first.
Mark Halpin , CEO of CloudCoCo, commented:
"The period under review has been another successful one,
characterised by a focus on integrating and optimising the four
acquisitions made in late 2021, while taking steps to ensure the
Group moves forward as a single, cohesive unit. To have delivered
such a positive financial performance in such a short space of time
while making such major leaps forward operationally is testament to
the quality of our expanded proposition and the hard work of
everyone at the business.
"Looking ahead, we are confident FY23 will be another year of
material strategic and commercial progress. Our organic growth
prospects are strong, with growing demand, all parts of the
business now fully embedded and operating profitably, and a
programme of investment underway to further bolster our sales
efforts. Alongside this, in pursuit of the next stage in our 'Get
Bigger' strategy, we are actively exploring complementary
acquisitions with the potential to enhance our one stop shop
capabilities and accelerate value creation for shareholders."
(1) earnings before net finance costs, tax, depreciation,
amortisation, plc costs, exceptional costs and share-based
payments.
Contacts:
CloudCoCo Group plc Via Alma PR
Mark Halpin (CEO)
Darron Giddens (CFO)
Allenby Capital Limited - (Nominated Tel: +44 (0)20 3328
Adviser & Broker) 5656
Jeremy Porter / Freddie Wooding - Corporate
Finance
Tony Quirke / Amrit Nahal - Equity
Sales
Alma PR - (Financial PR) Tel: +44 (0)20 3405
David Ison 0205
Josh Royston cloudcoco@almapr.co.uk
Kieran Breheny
About CloudCoCo
Supported by a team of industry experts and harnessing a diverse
ecosystem of partnerships with blue-chip technology vendors,
CloudCoCo makes it easy for private and public sector organisations
to work smarter, faster and more securely by providing a single
point of purchase for their connectivity, telephony, cyber
security, cloud, IT hardware and support needs.
CloudCoCo has headquarters in Leeds and regional offices in
Warrington, Sheffield and Bournemouth
www.cloudcoco.co.uk
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