Cloudbuy PLC Trading Update (4466S)

TIDMCBUY

RNS Number : 4466S

Cloudbuy PLC

21 December 2016

cloudBuy plc

("cloudBuy" or the "Company")

Trading Update

for the year ending 31 December 2016

cloudBuy, the global provider of cloud-based eCommerce marketplaces and B2B buyer and supplier solutions, is pleased to provide an update on trading for the year ending 31 December 2016. The Company expects revenues for the year to be in line with market expectations, whilst the operating loss excluding share based payments is expected to be marginally better than market expectations as a result of cost cutting measures implemented during the course of the year.

Operationally, the Company has made satisfactory progress with four new customer wins announced, all generating revenue in the second half of the year.

More significantly, the PHB Choices emarketplace through NHS SBS continues to progress with the first transactions from PHB budget holders being completed through the market place. Whilst these have been in small volumes to date, this is nevertheless a significant milestone.

The Company has continued to implement cost reduction measures in the second half of the year. Further redundancies have been effected and the Directors of the Company have agreed to reductions in salaries totalling an annualised GBP250,000 which came into effect in October 2016. These measures will result in lower costs in 2017 compared to 2016.

In conjunction with the Directors' reduction in pay, a total of 2,155,000 options are being issued on 21 December 2016 including 250,000 to each of Ronald Duncan, Lyn Duncan, Jonny Holden and David Gibbon and 75,000 to David Chellingsworth. The options for Directors vest in equal monthly instalments over a period of 2 years commencing on 21 January 2017. The remaining 1,080,000 options are being issued to staff in conjunction with either a reduction in pay or for retention purposes. All options are at an issue price of 6.5p being a 92% premium over the closing price on 20 December 2016. These options are issued from a pool of options created from options being cancelled as a result of employees leaving the Company. The options of the Directors' following this issue will be as follows:

 
                          Existing    New                    Exercise 
                           Options     Options       Total    Price 
 
 Ronald Duncan              300,000                300,000   GBP0.0175 
                            332,867                332,867   GBP0.1163 
                          1,751,042              1,751,042     GBP0.10 
                                       250,000     250,000    GBP0.065 
 Total                    2,383,909    250,000   2,633,909 
                         ----------  ---------  ---------- 
 
 Lyn Duncan                 187,500                187,500   GBP0.0175 
                            332,867                332,867   GBP0.1163 
                          1,359,245              1,359,245     GBP0.10 
                                       250,000     250,000    GBP0.065 
 Total                    1,879,612    250,000   2,129,612 
                         ----------  ---------  ---------- 
 
 Jonny Holden             1,800,000              1,800,000     GBP0.10 
                                       250,000     250,000    GBP0.065 
 Total                    1,800,000    250,000   2,050,000 
                         ----------  ---------  ---------- 
 
 David Gibbon             1,341,667              1,341,667     GBP0.10 
                                       250,000     250,000    GBP0.065 
 Total                    1,341,667    250,000   1,591,667 
                         ----------  ---------  ---------- 
 
 David Chellingsworth                   75,000      75,000    GBP0.065 
 Total                            0     75,000      75,000 
                         ----------  ---------  ---------- 
 
 Patrick Broughton          300,000                300,000     GBP0.10 
 Total                      300,000          0     300,000 
                         ----------  ---------  ---------- 
 

Ronald Duncan Executive Chairman and CIO commented "We are pleased that we expect results to be in line with market expectations. Whilst this has been a difficult year for the Company we have continued to make operational progress, the benefits of which we would expect to see next year and beyond, and we have reduced costs where appropriate."

For further information, please contact:

 
  cloudBuy plc 
   David Gibbon, CFO                  Tel: [phone] 
 
  Arden Partners plc -               Tel: [phone] 
   NOMAD and broker 
  James Felix / Patrick Caulfield 
 
  Alma PR 
  Josh Royston / Hilary Buchanan     Tel: [phone] 
 

About cloudBuy plc

cloudBuy, (AIM: CBUY), provides cloud solutions for buyers and sellers - and brings them together to trade securely and ethically via an increasing number of public eMarketplaces and private purchasing portals around the world, powered by cloudBuy technology. cloudBuy solutions for buyers help B2B purchasers understand and control their spend, to reduce costs and increase value. Our cloudSell solutions enable sellers of all sizes, from startups to corporates, reach new customers and grow their business.

cloudBuy's technology platform powers web sites, public marketplaces and private purchasing portals that enable all types of online interactions and relationships including, citizen and business to government; consumer to business; and business to business.

For more information, visit: www.cloudbuy.com .

This information is provided by RNS

The company news service from the London Stock Exchange

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December 21, 2016 02:00 ET (07:00 GMT)