Toople Share Discussion Threads

[jungmana] 02/7/2019 11:41

SME business owners typically respond best to the Company's digital marketing activities when they have finished work for the day and they are able to communicate with live sales agents on their desktops, mobiles or tablets. The Durban operation will significantly extend operating hours so that Toople can communicate as soon as enquiries are received.

[hairballradical] 02/7/2019 11:08

Am I missing a trick here?

Durban is two hours ahead of GMT which means that when we clock off at 6pm its already 8pm in Durban. How does that help? Surely we need somewhere stateside / Aus that's just starting their day to get an extended call response or just stay open here until later?

WTFDIK?

HBR

[tewkesbury] 02/7/2019 10:19

- TOOP with 0.5% or 25,000 customers = £67.1m to £111m = 5.87p to 9.71p

- TOOP with 0.25% or 12,500 customers = £33.5m to £55.5m = 2.93p to 4.85p

[tewkesbury] 02/7/2019 09:40

01 July 2019
Toople PLC
Trading Update

New contracts signed with revenue in excess of GBP500,000

Strong year on year growth in new orders

Toople Plc (LSE: TOOP), a provider of bespoke telecom services to UK SMEs, is pleased to provide the following update on trading. Since the Company settled its outstanding debt after its recent private placing, it has seen material growth across all operational metrics

Growth in customer acquisition has continued to accelerate rapidly since the half year end and the Board is pleased to announce that Toople received over 900 new orders in April 2019 and over 1,000 orders in May. Order numbers in May 2019 were 3.5 times those achieved in May 2018, representing 250% growth year on year. This growth trajectory continued into June with over 1,100 orders from over 800 new customers received. Toople is now seeing over 800 new customers placing orders every month.

The contract value of new customers signed in May 2019 amounts to revenue in excess of GBP500,000 for Toople over a 24 month period. The Board also expects to see continued growth in total contract value for June driven by order volume growth as well as material growth in superfast fibre orders which deliver higher revenue and gross profit.

As previously announced the Company has invested in creating an in-house sales and marketing channel and this, coupled with its digital marketing strategy, is driving the large number of new customer enquiries, many of which are received after 8 p.m. on weekdays and over weekends.

To help maximise these new customer enquiries, Toople has recently established a sales centre in Durban, South Africa. SME business owners typically respond best to the Company's digital marketing activities when they have finished work for the day and they are able to communicate with live sales agents on their desktops, mobiles or tablets. The Durban operation will significantly extend operating hours so that Toople can communicate as soon as enquiries are received. The Board believes the investment in a second sales centre will drive further lead conversion, which will result in a lower overall cost per customer.

Commenting, Andy Hollingworth, CEO at Toople said:

"We are delighted to report that our sector of the UK SME telecom services market continues to grow rapidly. Our continued success has resulted in us becoming a major disruptor and provides further proof of our sales strategy. We continue to generate more leads than ever before and with the establishment of a presence in Durban, extending our sales hours into the evenings and weekends, we are now able to convert more of those leads and at a faster rate. These initiatives will deliver a lower overall cost per customer acquisition as a result of the maturing focus of our own digital marketing campaigns without any increase in our marketing capex.

"When you combine this operational success with the recent repayment of our debt, and consider the recent M&A activity at attractive valuations in our sector, we believe that the business is currently in a very good place."

[bobdown2] 02/7/2019 09:15

We know there is a time lag between upfront costs and revenues recieved. But the enlarged customer base will grow so big that monthly revenue will surpass costs. That the stock market is not rewarding the share price of a company that is increasing its customer base by about 15% a month is a reflection of the workings of the stock market..A discounted share placing and months of good progress totally ignored..

[chestnuts] 02/7/2019 09:03

AMt

THe burn through cash will decrease gradually as cash positive gets closer and that could be in 3 months or 6 months, but if they stopped expanding at this moment they would be cash positive its only because they are expanding they need the cash.

[amt] 02/7/2019 08:41

They have about 1.4m cash.
Burn about 100k per month reducing to break even in a couple of years. So they likely burn 1.5m but unlikely to let cash fall below half a million.

[tewkesbury] 02/7/2019 08:24

Toople customer and order numbers gathering momentum now.

[parsons4] 02/7/2019 08:19

beynac1 "negative deramping questions !!??" how sad are you ?

[amt] 02/7/2019 08:05

Probably will need another half million in cash in 9 months or so but by then annualised sales should be 6m plus so valuation should he much higher especially as break even will be in site.

[2mex] 02/7/2019 07:56

Bob, your post 3271. Indeed tremendous upside from the £3.5m contract. The bulk transfer of estate migrants should be done by now.

Effectively the revenue average effect will be equivalent to a bolt on 4600+ customers.

The wholesaler will also white label Toople Broadband into the estate potentially adding 30% onto value.

[tewkesbury] 02/7/2019 07:32

Toop experienced a 250% year on year growth in orders from May 2018 to May 2019.

[parsons4] 02/7/2019 05:15

I also increased my holding today. I think there are 2 issues here that worry the market. 1) is Andy Hollingworth real or a bit of a con man and 2) how long before they achieve better than break-even and become cash generative ? I seem to remember David Breith from another company that nearly failed a few years back, does anybody here know which company he was involved with ? GLA

[bobdown2] 01/7/2019 23:30

The 3.5m contract could have all the customers moved over by now. The 3.5m is a minimum amount and the delay in arranging the transfers means the revenues will be weighted towards the last 30 months. The projected utility contract revenues were nearly fulfilled after 12 months instead of 24. If we get anything like this sort of result then that could change revenue estimates to the upside.

[tewkesbury] 01/7/2019 21:06

I think they will be getting retail gross margins over 30% soon.

[tewkesbury] 01/7/2019 19:46

AH said in the interview today they were meeting all their KPI's. Expect great things.

[2mex] 01/7/2019 19:38

"..To help maximise these new customer enquiries, Toople has recently established a sales centre in Durban, South Africa. SME business owners typically respond best to the Company's digital marketing activities when they have finished work for the day and they are able to communicate with live sales agents.."

I am delighted that Toople have made this move. People want to get in touch with Toople sales out of normal office hours.

Toople were missing a trick but now the power of the enhanced digital marketing will be fully realised.

Normal office hours cover about 40 hours. Adding out-of-hours sales could be doubling that.

Not only that - the weighting of enquiries may actually be from evenings / weekends. We shall see. Watch July trading figures.

Retail sales could double. The Warrington office is already very busy. I suspect there will call transfers to South Africa to pick up the overspill of enquiries in normal hours.

A great move by Toople with potential massive impact on Retail.

[ff2345] 01/7/2019 19:31

Just updated my projections.

for September 2019 I am now showing
- £5m annualised turnover producing
- £1m Gross Margin with a
- £1.2m annualised loss

So still loss making, but what will be appealing to predators is the sales and gross profit. For Sept 2020 this gross margin increases to £2m. How much is this worth?

[2mex] 01/7/2019 19:26

June has brought in £500K+ revenue over 2 years.

So each customer is worth approx. £320 per year.

When Toople are at 25,000 in the new year those customers will be generating:

based on above 25,000 x £320 = £8,000,000 revenue and growing

I expect the weight of retail to wholesale to move the overall margin to 20%+

So 25,000 customers @0.20 gross margin will produce £1.6 million gross profit.

[2mex] 01/7/2019 17:35

Hottingup, in December 2019 there should be 20-24,000 customers.

It will be nearer 24,000 from a July step change and so Toople would have 0.5% SME market share by Jan 2019.

Also note that the enhanced marketing is also targeting partners. Toople are not just passively acquiring partners. They are actively targeting potential candidates.

[hottingup] 01/7/2019 16:02

2mex, I forgot the figures out today were just for retail direct sign-ups with Toop, so something obviously needs to be added on top for wholesale sign-ups. That means Toop could end 2019 with 15,000 to 20,000 customers, and a higher valuation than which I indicated earlier today on the other thread.