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Share Name Share Symbol Market Type Share ISIN Share Description
Loopup Group Plc LSE:LOOP London Ordinary Share GB00BYQP6S60 ORD 0.5P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 77.00 230,018 16:35:08
Bid Price Offer Price High Price Low Price Open Price
74.00 78.00 77.50 76.00 77.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 34.21 0.39 2.50 30.8 43
Last Trade Time Trade Type Trade Size Trade Price Currency
16:41:18 O 35,000 75.00 GBX

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DateSubject
23/1/2021
08:20
Loopup Daily Update: Loopup Group Plc is listed in the Software & Computer Services sector of the London Stock Exchange with ticker LOOP. The last closing price for Loopup was 77p.
Loopup Group Plc has a 4 week average price of 76p and a 12 week average price of 68.50p.
The 1 year high share price is 248p while the 1 year low share price is currently 40.50p.
There are currently 55,441,182 shares in issue and the average daily traded volume is 309,338 shares. The market capitalisation of Loopup Group Plc is £42,689,710.14.
14/1/2021
12:36
sev22: The article below was published by Simon Thompson, Investors Chronicle, on the 30th November 2020. Since then the country has entered another National Lockdown which is likely to last until at least the end of March 2021. Investors overreact to LoopUp warning. ■ Higher churn and lower revenue in non-professional segments. ■ Pipeline of live cloud telephony opportunities has potential contract value of £84m. LoopUp (LOOP:84p), a London-based premium remote conference meetings company, downgraded revenue expectations on Friday while I was on leave. The market reaction was savage with the shares halving in value and slicing through my 138p entry point (‘Tap into the remote working boom with LoopUp’, 2 July 2020). Having seen the share price rally 80 per cent to 250p by late summer, passing through my initial 225p target price in the process, the holding is now 40 per cent underwater. Although any downgrade is disappointing, in this case I feel investors have massively overreacted. Firstly, business remains strong in LoopUp’s key professional service verticals where data privacy and security is paramount (law, accountancy, investment banking, corporate finance, private equity, asset management, insurance, PR and marketing). Minute volumes are 43 per cent higher on average (during September and October) than pre-pandemic levels. This growth driver is still in place. Secondly, the issue is in non-professional (and non-core) segments which account for 14 per cent of platform revenue. Minute volumes have fallen 10 per cent (compared to pre-pandemic levels), and churn has spiked to 30 per cent, a reflection that non-professional segments face greater competition from rivals Zoom and Microsoft Teams, and clients suffer greater financial distress and have higher levels of employee furloughing. Although this pressure is unlikely to ease anytime soon, these are non-core segments and account for a diminishing amount of LoopUp’s overall revenue. Thirdly, there has been a shift in the call mix towards lower-rated domestic and dial-out minutes away from higher rated international and dial-in minutes, a reflection of the depressed number of international deals being done. This in turn has impacted the average revenue per minute. However, as cross-border activity bounces back from depressed levels during the global economic recovery, then international usage should bounce back, too. Fourthly, although analysts at Panmure Gordon have downgraded their 2020 revenue estimates from £55.6m to £50m, cash profit will still be more than double from £6.4m in 2019 to £15m to deliver annual pre-tax profit of £8.3m and earnings per share (EPS) of around 14.5p. Moreover, analysts’ new 2021 revenue estimate of £35.5m is based on LoopUp’s current revenue run-rate of £34m and factors in no contribution from the recently launched cloud telephony [integrated with Microsoft Teams] business. This product offering enables clients to make and receive external calls via a third-party network direct routing to companies using Microsoft Teams, alongside its own premium remote meetings capability. Bearing this in mind, the directors note that the pipeline of live opportunities here has a potential contract value of £84m, up from £68m just in late September. They also revealed that the company has been selected by a private banking group to provide their global cloud telephony, subject to a successful three-month proof of concept trial which starts in December. In other words, the pipeline is being converted. Fifthly, the company has paid down substantial amounts of debt this year. In fact, analysts at Progressive Equity Research expect net borrowings of £1.9m at the end of December 2020, a sum that is £9.6m lower than 12 months earlier. This means that although their 2021 cash profit estimate of £6.1m is less than half previous estimates of £13.3m (due to the lower revenue run-rate), LoopUp’s enterprise value of £48m now equates to only 8 times downgraded cash profit forecasts, a massive 41 per cent discount to the UK Small-Cap Technology sector average multiple of 13.5 times 2021 enterprise value to cash profit. The point is that as LoopUp converts its pipeline of potential contracts in the cloud telephony [integrated with Microsoft Teams] business, and cross-border activity bounces back to more normal levels (thus driving up higher margin international call volumes), there is scope for the current revenue run-rate of £34m to ratchet up and drive profits higher. 'Strong recovery buy.'
12/1/2021
18:51
ianb5004: Loopup listed in Stockopedia top 20 stock picks for 2021 - it has been a wild year for LoopUp: at first the meteoric c230% share price rise as a work-from-home beneficiary, only to be followed by a disappointing end-of-year trading update which sent its stock crashing back down to more or less exactly where it started. Now this remote meetings provider is a top pick not as a software-as-a-service High Flyer, but as a beaten up Contrarian opportunity. Shares have since started to climb once more. LoopUp’s products help organisations move their global communications into the cloud to support flexible working, increase productivity and reduce complexity and cost. Solutions include full telephony integration for Microsoft Teams, which is delivered over LoopUp’s premium voice network via Direct Routing, and a premium remote meeting solution. More than 5,000 organisations around the world use LoopUp’s global voice network – from major multinationals to fast-growing SMEs, public sector bodies and professional services firms, including 20 of the top 100 global law firms. In LoopUp’s most recent trading update, the group commented: “While trading is expected to remain challenging in the non-PS part of our Meetings business, this now represents just 14% of our total LoopUp Platform revenue... By contrast in our core market, we remain confident in our ability to drive attractive, sustainable and profitable growth of our premium external cloud communications platform, and therefore plan to invest to maximize growth and shareholder value creation.
09/12/2020
11:37
cooltools: Plat Hunter and Sam_ - the front page of the company website (hTtps://loopup.com/en/) puts the emphasis very much on their tie up with Microsoft Teams. "Move your organisation to secure and reliable cloud communications with LoopUp’s fully managed global solution for cloud voice via Microsoft Teams Direct Routing and premium remote meetings." Loop are well aware that MS Teams have pulled the rug from Zoom's business, let alone theirs. By that, I mean small to enterprise companies. Zoom's customers are primarily tiny outfits and sole traders (I should know, I'm one). Anyone larger has MS Office 365 and the push to just use what comes with MS is relentless. Zoom is very much a Covid-19 play, and will lose out when life returns to some form of normality (accepted with an increased degree of WFH). There appears to be a huge misunderstanding that LOOP is vulnerable in the same way, IMO. It's clear to me that LOOP have carefully and proactively moved away from that model to concentrate on voice integration with MS Teams. Personal services need secure, high quality voice calls to any destination in the world, including mobile. LOOP provides this, and is an MS Partner - i.e. MS points their customers towards LOOP (and its competitors elsewhere in the world) for those who want a premium voice network. Note that this telephony is not primarily for WFH, but for reaching customers, and professional services (think lawyers) need a secure, clean quality line to any client, anywhere in the world - right from within MS Teams. LOOP put it more clearly than I ever could, right there on their front page: "LoopUp – the perfect complement to Microsoft Teams The use of Microsoft Teams for internal team collaboration is growing rapidly. And many enterprises are now considering using Teams for business telephony to reduce operational complexity and costs. "LoopUp is a trusted partner to more than 5,000 enterprises, including 20 of the world’s top-100 law firms. Our solution interconnects in the cloud with Microsoft Teams using Direct Routing, providing premium quality inbound and outbound calls and best-in-class external remote meetings. "The solution is delivered as a secure global fully managed service with differentiated quality and reliability, caring 24/7 multilingual support, and deep domain expertise." The announcement that non-PS is more "challenging" than thought earlier (i.e. the transition is happening quicker than expected) led to the fall at the end of November. GLA!
30/11/2020
19:05
sev22: Here is Simon Thompson's feature on LoopUp, released at 12.00 pm today. Looks like a significant value opportunity to me. Investors overreact to LoopUp warning. ■ Higher churn and lower revenue in non-professional segments. ■ Pipeline of live cloud telephony opportunities has potential contract value of £84m. LoopUp (LOOP:84p), a London-based premium remote conference meetings company, downgraded revenue expectations on Friday while I was on leave. The market reaction was savage with the shares halving in value and slicing through my 138p entry point (‘Tap into the remote working boom with LoopUp’, 2 July 2020). Having seen the share price rally 80 per cent to 250p by late summer, passing through my initial 225p target price in the process, the holding is now 40 per cent underwater. Although any downgrade is disappointing, in this case I feel investors have massively overreacted. Firstly, business remains strong in LoopUp’s key professional service verticals where data privacy and security is paramount (law, accountancy, investment banking, corporate finance, private equity, asset management, insurance, PR and marketing). Minute volumes are 43 per cent higher on average (during September and October) than pre-pandemic levels. This growth driver is still in place. Secondly, the issue is in non-professional (and non-core) segments which account for 14 per cent of platform revenue. Minute volumes have fallen 10 per cent (compared to pre-pandemic levels), and churn has spiked to 30 per cent, a reflection that non-professional segments face greater competition from rivals Zoom and Microsoft Teams, and clients suffer greater financial distress and have higher levels of employee furloughing. Although this pressure is unlikely to ease anytime soon, these are non-core segments and account for a diminishing amount of LoopUp’s overall revenue. Thirdly, there has been a shift in the call mix towards lower-rated domestic and dial-out minutes away from higher rated international and dial-in minutes, a reflection of the depressed number of international deals being done. This in turn has impacted the average revenue per minute. However, as cross-border activity bounces back from depressed levels during the global economic recovery, then international usage should bounce back, too. Fourthly, although analysts at Panmure Gordon have downgraded their 2020 revenue estimates from £55.6m to £50m, cash profit will still be more than double from £6.4m in 2019 to £15m to deliver annual pre-tax profit of £8.3m and earnings per share (EPS) of around 14.5p. Moreover, analysts’ new 2021 revenue estimate of £35.5m is based on LoopUp’s current revenue run-rate of £34m and factors in no contribution from the recently launched cloud telephony [integrated with Microsoft Teams] business. This product offering enables clients to make and receive external calls via a third-party network direct routing to companies using Microsoft Teams, alongside its own premium remote meetings capability. Bearing this in mind, the directors note that the pipeline of live opportunities here has a potential contract value of £84m, up from £68m just in late September. They also revealed that the company has been selected by a private banking group to provide their global cloud telephony, subject to a successful three-month proof of concept trial which starts in December. In other words, the pipeline is being converted. Fifthly, the company has paid down substantial amounts of debt this year. In fact, analysts at Progressive Equity Research expect net borrowings of £1.9m at the end of December 2020, a sum that is £9.6m lower than 12 months earlier. This means that although their 2021 cash profit estimate of £6.1m is less than half previous estimates of £13.3m (due to the lower revenue run-rate), LoopUp’s enterprise value of £48m now equates to only 8 times downgraded cash profit forecasts, a massive 41 per cent discount to the UK Small-Cap Technology sector average multiple of 13.5 times 2021 enterprise value to cash profit. The point is that as LoopUp converts its pipeline of potential contracts in the cloud telephony [integrated with Microsoft Teams] business, and cross-border activity bounces back to more normal levels (thus driving up higher margin international call volumes), there is scope for the current revenue run-rate of £34m to ratchet up and drive profits higher. Recovery buy.
28/11/2020
09:30
togglebrush: The destruction of the LOOPup share price was virtually instant. At opening share price dropped from 155 to 110 instantly. Trades were going through at one every three seconds (18.7 per minute) during the first hour. Normally brokers notes, issued under embargo, are released to the press the day before, and the RNS officially released at 7.00 am ' First Hour trading at 18.7 per minute was high of day. The low of day between 1300-1400 was 2.8 per minute whilst Average Daily rate was 6.7 per minute. Trading Volume in first hour was 30% of day but if you add in delayed trades you get 43% volume in First hour (volume and values similar). Averages values were over £5,000 until last hour when delayed trades came through at over £10,000. All the trades were “Off book", not through Direct Access. Negotiated price trades, of all varsities were 160 out of 3,440. ' Median size of individual trades was £5,750 whilst only top one percent of trades were over £49,000 value (roughly £1 million total value). This was a market with experienced traders (HNW ?) taking advantage of brokers note , with little institutional activity, and ignoring blind sided private investors in my opinion. ' The instant destruction of the share price by such a margin is unusual. IMHO the early release of NUMIS note to selected clients may be the reason for instant share price change.
27/11/2020
20:23
thordon: Non-core revenue drags run-rate down LoopUp has published a trading update detailing a modest miss for FY20, but a materially lower-than-expected run rate as the business moves towards FY21. The shortfall is attributable almost entirely to a faster-thanexpected and more dramatic decline for the LoopUp meetings product in sectors outside the core focus Professional Services segment. We make reductions in estimates to reflect this revised outlook – clearly this is disappointing, but there are a number of positives within the parts of the business likely to drive long-term value. ▪ Trading update The group has this morning announced an update, describing the likely outturn for 2020 slightly below our previous forecasts. This is driven by current trading showing an increase in meeting minutes (up 43% overall) but a drop in revenue per minute (down 24%) as more of the calls are domestic/dial-out and less are international/dial-in. ▪ Challenges most apparent in non-core areas The pressure is being most clearly seen in the non-Professional Services side of the group, which is seeing volumes 10% down y/y (even before the pricing impact described above) and with customer churn running at around 30%. We had expected pressure in this area, but not to the extent clearly being felt – the competitive threats of Teams and Zoom (in these non-Professional Services sectors) are combining with customer end-market challenges and financial pressures to drive a dramatic decline in revenue and customer numbers. ▪ Impact on estimates For 2020, the impact of this pressure is muted, given that the bulk of the year has passed, and these effects have only recently come to the fore. For 2021, however, the current annual run rate of c.£34m is dramatically below our previous £56m estimate. We make a relatively modest reduction to 2020 forecasts, but a much more material cut to 2021 estimates to reflect this new reality. Clearly the downgrades are a disappointment, and we are surprised to see the scale and the pace of the pressure outside Professional Services. Nevertheless, there are a number of bright spots – the growth in minutes within Professional Services and the strong pipeline for the recentlylaunched product which seeks to benefit from the Cloud Telephony uplift described above. We await further news and to see additional progress on the core and emerging revenue streams. 0 50 100 150 200 250 300 FYE DEC (£M) 2017 2018 2019 2020E 2021E LoopUp Revenue 17.5 34.2 42.5 50.1 35.2 Adjusted EBITDA 3.5 7.7 6.4 15.1 6.1 Adjusted PBT 0.7 4.1 0.5 8.4 -0.3 Adjusted EPS 4.4 9.3 2.2 14.7 -1.0 EV/Sales 5.1x 2.6x 2.1x 1.8x 2.5x EV/ Adj. EBITDA 25.7x 11.6x 13.9x 5.9x 14.5x P/E 35.0x 16.7x 71.7x 10.5x n.a. Source: Company Information and Progressive Equity Research estimates LOOPUP IS A RESEARCH CLIENT OF PROGRESSIVE ANALYSTS Gareth Evans +44 (0) 20 7781 5301 gevans@progressive-research.com Ian Poulter +44 (0) 20 7781 5307 ipoulter@progressive-research.com 27 November 2020 2 LoopUp Changes to estimates We make the changes as shown below to our forecasts, reflecting management guidance for 2020 as described in the RNS, and a view of 2021 based largely on the current run-rate, again as described. From the current run-rate revenue of some £34m, we expect modest ongoing decline in the Cisco business and non-Professional Services revenues…together this could reduce sales by £2m per year. Offsetting this, we expect the new Cloud Telephony revenue streams to begin to contribute modestly in 2021 as the Teams-based sales opportunities continue to convert. The pipeline for this business appears extremely strong at some £84m in total contract value, suggesting a good level of customer interest and strong long-term potential. The major unknown for 2021 is the core LoopUp Meetings business within the Professional Services sector. We would hope that this should perform strongly, driving revenues higher as customers unwilling to rely on the public internet, and for whom call quality and security are paramount, continue to use LoopUp for important meetings. There is, however, risk that the current “boost” to minute volumes could abate as working patterns normalise – this would reduce the scope for revenues to grow overall. Offsetting this risk, however, we would expect per-minute prices to rise as the mix perhaps moves back to a more normal level of international and dial-in minutes….these higher-rate services would improve the mix and add to revenues. Balancing all these factors, we suggest that a revenue level modestly, but not materially ahead of the current run-rate level might be a realistic view for 2021. We model this, as shown in the table below, with the knock-on impact on Adjusted EBITDA and other financial metrics. CHANGES TO ESTIMATES Source: Progressive Equity Research estimates FY20E £m unless stated Old New Change (%) Old New Change (%) Revenue 54.8 50.1 -9% 56.0 35.2 -37% Adj EBITDA 17.3 15.1 -13% 13.3 6.1 -54% Fully adj PBT 10.5 8.4 -20% 5.9 -0.3 nm Fully adj EPS (p) 17.2 14.7 -14% 9.3 -1.0 nm FY21E 27 November 2020 3 LoopUp Positive elements There are, despite the obvious pressures, a number of positives within the announcement: ▪ Professional Services client base The group is seeing strong ongoing demand within the Professional Services segment, for which the product is tailored and where customers continue to value the unique attributes, unmatched by Teams, Zoom or other platforms. Client wins for H2 are described as including three of the world’s top 100 law firms, and the pipeline is strong at an Annual Contract Value of some £16m. ▪ Teams-telephony product showing strong early signs Cloud Telephony revenues could evolve materially, with the recently launched proposition for Teams telephony providing a major revenue opportunity. The pipeline for this business stands at a Total Contract Value of £84m, some 68% higher than the previous figure of c£50m given with at the time of H1 results in late-September. ▪ Meeting minute volumes remain buoyant The current level of minute volumes within Professional Services (roughly 56% up y/y) remains extremely strong; if this can persist into 2021 as work returns to something more approaching “normal” next year, then the group is well placed. ▪ Price-per-minute mix could recover The current reduction in average revenue per minute reflects a lack of international calls – presumably as international deals are depressed, and cross-border activity is at low levels. If these types of usage return, then average prices per minute will rise, adding to revenue. Summary and conclusion Overall, today’s news is clearly a negative development, but the vast majority of the disappointment relates to the business that is already identified as non-core (i.e. the segments outside Professional Services) which now accounts for just 14% of LoopUp Platform revenues. The scale and the pace of the drop-off in client revenues has been a surprise, as the pressures of both challenging end markets and the emerging success of Teams and Zoom have combined to dramatically reduce LoopUp revenues. Nevertheless, LoopUp remains well positioned (and performing strongly) in its core and target Professional Services sector, and well placed to deliver on the potential for Teams-based Cloud Telephony. 27 November 2020 4 LoopUp Financial Summary: LoopUp Year end: December (£m unless shown) PROFIT & LOSS 2017 2018 2019 2020E 2021E LoopUp Revenue 17.5 34.2 42.5 50.1 35.2 Adj EBITDA 3.5 7.7 6.4 15.1 6.1 Adj EBITA 3.2 7.1 4.9 12.9 4.2 Reported PBT 0.7 0.4 (2.8) 5.6 (2.8) Fully adj PBT 0.7 4.1 0.5 8.4 (0.3) NOPAT 0.7 4.5 1.2 8.7 0.0 Reported EPS 4.4 2.3 (3.3) 7.6 (2.7) Fully adj EPS 4.4 9.3 2.2 14.7 (1.0) Dividend per share 0.0 0.0 0.0 0.0 0.0 CASH FLOW & BALANCE SHEET 2017 2018 2019 2020E 2021E Operating cash flow 3.1 4.4 6.7 11.6 (1.7) Free Cash flow (0.1) 4.4 4.4 9.5 (1.7) FCF per share (0.3) 8.3 7.4 15.6 (2.8) Acquisitions 0.0 (65.9) (5.0) 0.0 0.0 Disposals 0.0 0.0 0.0 0.0 0.0 Shares issued 0.9 47.9 0.1 0.0 0.0 Net cash flow 0.7 (13.5) (0.9) 9.5 (1.7) Overdrafts / borrowings 0.0 (16.2) (14.5) (12.8) (11.1) Cash & equivalents 2.9 5.6 3.0 10.8 7.4 Net (Debt)/Cash 2.9 (10.6) (11.5) (1.9) (3.6) NAV AND RETURNS 2017 2018 2019 2020E 2021E Net asset value 10.5 59.9 58.1 62.7 59.4 NAV/share 25.6 109.0 105.2 113.6 107.5 Net Tangible Asset Value 0.5 2.2 6.0 4.6 3.5 NTAV/share 1.1 3.9 10.8 8.3 6.3 Average equity 9.1 35.2 59.0 60.4 61.9 Post-tax ROE (%) 8.0% 11.6% 0.9% 13.8% (0.5%) METRICS 2017 2018 2019 2020E 2021E Revenue growth 36.2% 95.9% 24.3% 17.8% (29.8%) Adj EBITDA growth 67.8% 121.1% (16.2%) 135.0% (59.4%) Adj EBITA growth 74.5% 124.1% (30.5%) 161.0% (67.4%) Adj PBT growth (354.9%) 459.9% (87.4%) 1528.1% (103.3%) Adj EPS growth 722.4% 109.8% (76.8%) 582.2% (106.5%) Dividend growth N/A N/A N/A N/A N/A Adj EBITA margins 18.2% 20.8% 11.6% 25.7% 11.9% VALUATION 2017 2018 2019 2020E 2021E EV/Sales 5.1 2.6 2.1 1.8 2.5 EV/EBITDA 25.7 11.6 13.9 5.9 14.5 EV/NOPAT 122.9 19.5 76.6 10.3 3811.2 PER 35.0 16.7 71.7 10.5 n.a. Dividend yield N/A N/A N/A N/A N/A FCF yield (0.2%) 5.4% 4.7% 10
20/11/2020
16:43
maddox: The recent decline in the share price is no mystery. Firstly, the upward trend was halted by Jupiter selling down their 9.4% stake - causing a plateau. Secondly, Pfizer's announcement 9 Nov of an effective Covid vaccine. Being perceived as a Covid beneficiary, the share price dipped sharply and triggered the Momentum and Chartist's stop-losses. Once the trend is broken - in a myopic market driven by Momentum seekers it's difficult to recover. On the other hand, for Growth Share, particularly GARP (Growth at a Reasonable Price) and Contrarian Value Investors this is a gift. LOOP's 1H eps was 13.9p putting them on a p/e of 12 based on just their 1H earnings alone - if it does as well in 2H the p/e drops to just 6 - which is ridiculously cheap for a share growing as fast as LOOP. GAMA - in the Unified Communications market LOOP are entering is on a p/e of 29. For an equivalent valuation LOOP's share price would be 822p.
20/11/2020
16:16
sev22: Did any of those investors who sold their shares this week even read the article I posted below from Simon Thompson of the IC? Business is booming at LoopUp (LOOP:245p), a London-based premium remote conference meetings company. As millions of firms move to remote working, LoopUp’s information secure, reliable and easy-to-use remote conferencing technology is enjoying strong demand from customers in key professional service verticals where data privacy and security is paramount (law, accountancy, investment banking, corporate finance, private equity, asset management, insurance, PR and marketing). The client base includes more than 20 per cent of both the AmLaw Global 100 firms and the world’s top-100 private equity firms. It’s growing strongly, too. The professional services segment increased call volume by 90 per cent to 335m minutes in the first half and its revenue contribution shot up by 81 per cent to £16.1m, outpacing the 43 per cent growth in LoopUp’s overall revenues to £31.9m. This growth has sent profits and cash flow soaring. With the benefit of strong operational gearing – administration costs declined by 7 per cent year-on-year to £10.6m – and rising gross margin (up from 67.1 to 71.4 per cent), LoopUp’s first half cash profit more than trebled to £12.2m to deliver a 664 per cent rise in operating profit to £9.2m. In turn, LoopUp generated £9.9m of cash from operating activities (more than 50 per cent more than for the whole of last year) which slashed net debt from £11.45m at the start of the year to £5.3m at end June. Net borrowing has since declined to £3m by the end of August. That’s important as more of the economic interest in the company is now owned by shareholders while at the same time the deleveraging of the balance sheet enables investors to place a higher value on LoopUp’s earnings given the lower financial risk. There are good reasons to expect these positive trends to continue. For instance, post period end, LoopUp closed a contract with one of the world’s five largest law firms, following a successful pilot with 300 users. It is now being rolled out globally and has “potential to become one of the company’s largest accounts”. The largest account currently accounts for 2.4 per cent of the company’s revenue, so this is a big win. The legal segment accounted for around 60 per cent of new wins in the six-month period, according to co-chief executive Steve Flavell, highlighting the quality of its user base. Moreover, LoopUp has offices in North America, Europe, Hong Kong, Sydney and Barbados, so its geographic footprint covers the world’s major business capitals, thus enabling it to win even more business and expand its customer reach further. That’s exactly what the company is doing, having just opened new sales pods in France and Germany to exploit the market opportunity in those countries. Microsoft Teams bumper business opportunity Another growth opportunity, and a sizeable one, too, is the extension announced in July to flagship product, LoopUp, as the company strives to become a leading provider of telephony services for Microsoft’s Teams, a product that has 75m daily active users. LoopUp now offers global cloud voice services via a third-party network direct routing to companies using Microsoft Teams, alongside its own premium remote meetings capability. Users can make and receive outbound and inbound voice calls directly from their Microsoft Teams user interface on any device, irrespective of geographic location, and with differentiated audio quality, reliability and security. Analysts at Gartner believe that 90 per cent of enterprises will adopt direct routing voice calls by 2022, up from only 10 per cent last year. This is a seismic shift and explains why Microsoft is seeking to increase its presence in this important segment of the market. It also explains why LoopUp is exploiting the market opportunity [for cloud telephony integrated with Microsoft Teams] which is forecast to grow fivefold in size to US$7.6bn over the next four years, according to research from Wainhouse Research. Add to that LoopUp’s existing professional services remote meeting market segment (predicted 40 per cent growth to US$2.8bn by 2024) and the company’s total addressable market will effectively treble to US$10.5bn by 2024. Bearing this in mind, the directors confirmed during our results call that they have already secured 219 live opportunities with a total contract value worth £50m for cloud telephony integrated with Microsoft Teams. They expect gross margin earned on this new revenue stream to be in line with that on LoopUp’s existing products. They also noted that 30 per cent of LoopUp’s business came from committed contracts, up from 13 per cent at the start of the year, with an average committed term of 24 months. This further improves earnings visibility, albeit the margin on these term contracts is lower than on rolling monthly pay-as-you-go Earnings forecasts conservative Analysts at Panmure Gordon have left their full-year earnings per share (EPS) estimates unchanged at 15.1p based on LoopUp delivering annual revenue of £55m, cash profit of £16.9m and pre-tax profit of £10.2m. Even after taking into account the first half weighting to earnings, their forecasts look too conservative given analysts have not factored in any benefit from Microsoft Teams direct routing sales. The second wave of the Covid-19 pandemic is also forcing millions of workers to return from the office to home working. Both these factors can only boost demand for LoopUp’s products, and underpin the company’s strong performance. In the circumstances, I maintain my view that the company should be rated far closer to the UK Small-Cap Technology sector average multiple of 13.5 times 2021 enterprise value to cash profit (‘Targeting tech stocks’, 10 August 2020), a valuation that underpins my 300p target price. I first suggested buying the shares, at 138p, in my July Alpha Report (‘Tap into the remote working boom with LoopUp’, 2 July 2020). A move through the summer’s closing high of 248p would be another bullish signal. On a bid offer spread of 242p to 245p, the shares continue to rate a buy.
16/11/2020
14:36
sev22: Just to reassure private investors I have copied Simon Thompson's article, published in the IC on 23rd of September. I think the share price has been unfairly marked down here on the back of two vaccine headlines. The most recent trading news was fantastic, and I think a lot of that will continue, even if people do gradually go back to working in offices over the next few years. Business is booming at LoopUp (LOOP:245p), a London-based premium remote conference meetings company. As millions of firms move to remote working, LoopUp’s information secure, reliable and easy-to-use remote conferencing technology is enjoying strong demand from customers in key professional service verticals where data privacy and security is paramount (law, accountancy, investment banking, corporate finance, private equity, asset management, insurance, PR and marketing). The client base includes more than 20 per cent of both the AmLaw Global 100 firms and the world’s top-100 private equity firms. It’s growing strongly, too. The professional services segment increased call volume by 90 per cent to 335m minutes in the first half and its revenue contribution shot up by 81 per cent to £16.1m, outpacing the 43 per cent growth in LoopUp’s overall revenues to £31.9m. This growth has sent profits and cash flow soaring. With the benefit of strong operational gearing – administration costs declined by 7 per cent year-on-year to £10.6m – and rising gross margin (up from 67.1 to 71.4 per cent), LoopUp’s first half cash profit more than trebled to £12.2m to deliver a 664 per cent rise in operating profit to £9.2m. In turn, LoopUp generated £9.9m of cash from operating activities (more than 50 per cent more than for the whole of last year) which slashed net debt from £11.45m at the start of the year to £5.3m at end June. Net borrowing has since declined to £3m by the end of August. That’s important as more of the economic interest in the company is now owned by shareholders while at the same time the deleveraging of the balance sheet enables investors to place a higher value on LoopUp’s earnings given the lower financial risk. There are good reasons to expect these positive trends to continue. For instance, post period end, LoopUp closed a contract with one of the world’s five largest law firms, following a successful pilot with 300 users. It is now being rolled out globally and has “potential to become one of the company’s largest accounts”. The largest account currently accounts for 2.4 per cent of the company’s revenue, so this is a big win. The legal segment accounted for around 60 per cent of new wins in the six-month period, according to co-chief executive Steve Flavell, highlighting the quality of its user base. Moreover, LoopUp has offices in North America, Europe, Hong Kong, Sydney and Barbados, so its geographic footprint covers the world’s major business capitals, thus enabling it to win even more business and expand its customer reach further. That’s exactly what the company is doing, having just opened new sales pods in France and Germany to exploit the market opportunity in those countries. Microsoft Teams bumper business opportunity Another growth opportunity, and a sizeable one, too, is the extension announced in July to flagship product, LoopUp, as the company strives to become a leading provider of telephony services for Microsoft’s Teams, a product that has 75m daily active users. LoopUp now offers global cloud voice services via a third-party network direct routing to companies using Microsoft Teams, alongside its own premium remote meetings capability. Users can make and receive outbound and inbound voice calls directly from their Microsoft Teams user interface on any device, irrespective of geographic location, and with differentiated audio quality, reliability and security. Analysts at Gartner believe that 90 per cent of enterprises will adopt direct routing voice calls by 2022, up from only 10 per cent last year. This is a seismic shift and explains why Microsoft is seeking to increase its presence in this important segment of the market. It also explains why LoopUp is exploiting the market opportunity [for cloud telephony integrated with Microsoft Teams] which is forecast to grow fivefold in size to US$7.6bn over the next four years, according to research from Wainhouse Research. Add to that LoopUp’s existing professional services remote meeting market segment (predicted 40 per cent growth to US$2.8bn by 2024) and the company’s total addressable market will effectively treble to US$10.5bn by 2024. Bearing this in mind, the directors confirmed during our results call that they have already secured 219 live opportunities with a total contract value worth £50m for cloud telephony integrated with Microsoft Teams. They expect gross margin earned on this new revenue stream to be in line with that on LoopUp’s existing products. They also noted that 30 per cent of LoopUp’s business came from committed contracts, up from 13 per cent at the start of the year, with an average committed term of 24 months. This further improves earnings visibility, albeit the margin on these term contracts is lower than on rolling monthly pay-as-you-go Earnings forecasts conservative Analysts at Panmure Gordon have left their full-year earnings per share (EPS) estimates unchanged at 15.1p based on LoopUp delivering annual revenue of £55m, cash profit of £16.9m and pre-tax profit of £10.2m. Even after taking into account the first half weighting to earnings, their forecasts look too conservative given analysts have not factored in any benefit from Microsoft Teams direct routing sales. The second wave of the Covid-19 pandemic is also forcing millions of workers to return from the office to home working. Both these factors can only boost demand for LoopUp’s products, and underpin the company’s strong performance. In the circumstances, I maintain my view that the company should be rated far closer to the UK Small-Cap Technology sector average multiple of 13.5 times 2021 enterprise value to cash profit (‘Targeting tech stocks’, 10 August 2020), a valuation that underpins my 300p target price. I first suggested buying the shares, at 138p, in my July Alpha Report (‘Tap into the remote working boom with LoopUp’, 2 July 2020). A move through the summer’s closing high of 248p would be another bullish signal. On a bid offer spread of 242p to 245p, the shares continue to rate a buy.
28/9/2020
12:49
maddox: Guys, please call it quits and let's get back to discussing LOOP. Does anyone have insight into whether there is a seller - holding LOOP share price back?
Loopup share price data is direct from the London Stock Exchange
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