Cloudcoco Group PLC Trading Update (3049P)

TIDMCLCO

RNS Number : 3049P

Cloudcoco Group PLC

18 October 2021

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.

18 October 2021

CloudCoCo Group plc

("CloudCoCo" or the "Group")

Year End Trading Update

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 2021 ("FY21").

The Group has continued to perform well, completing its 'get well' and 'get fit' development phases and progressing through to 'get bigger', despite ongoing Covid-related challenges in the period.

Whilst we saw a temporarily reduced number of orders in early FY21, as a result of customers deferring large scale IT projects and challenges in accessing sites in person, we were successfully able to navigate the impacts of the pandemic. As a result (subject to finalisation and audit) the Directors expect revenue performance in FY21 to marginally exceed the GBP8.0m recorded in the year to 30 September 2020 ("FY20") and also expect the FY21 Trading EBITDA(1) to be in excess of GBP700k, up significantly on the GBP261k reported in FY20 and in line with market expectations.

Operationally, the Group continued to make significant progress. In September 2021, CloudCoCo added a further 125 customers and automation to its business through the strategic acquisition of Sheffield-based Systems Assurance Limited and More Computers Limited. The initial integration phase is underway and the acquired technology platforms are already being used to improve the overall operational efficiency of the wider Group.

Looking ahead, the Board continues to look for opportunities to deliver against its 'get bigger' strategic objective - both through organic and selective acquisitive means - to build scale in the business and ultimately deliver enhanced value for shareholders. Despite the ongoing effects of the pandemic on our end markets, with an ambitious growth strategy, increasingly optimised operations and a healthy pipeline of prospective new business, the Board is confident that FY22 will be another year of strong progress.

Mark Halpin , CEO of CloudCoCo, commented:

"We have delivered a robust performance in spite of the challenges posed by COVID-19 with a substantial increase in trading EBITDA. We focus on doing the basics well and we will continue to invest in our people and ways in which we provide support to our customers. The future for CloudCoCo is an exciting one and I look forward to updating shareholders on the next stages of our growth strategy."

(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: [phone] 
  Adviser & Broker)                                             5656 
  Jeremy Porter / James Reeve - Corporate 
  Finance 
  Tony Quirke / Amrit Nahal - Equity 
  Sales 
 Alma PR - (Financial PR)                        Tel: [phone] 
  David Ison                                                    0205 
  Josh Royston                                [e-mail] 
  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 offices in Warrington, Sheffield and Leeds in the UK.

www.cloudcoco.co.uk

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October 18, 2021 02:00 ET (06:00 GMT)