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Wednesday 09 June 2021

CloudCoCo back to earth in H1

CloudCoCo back to earth in H1After an initial pandemic peak seemingly comes the trough for CloudCoCo (formerly Adept4). The firm saw its first half revenue dip 6.5% year on year (yoy) to £4.1m as customers exercised caution in committing to long term investments. In contrast its trading EBITDA soared 435% to £364k after the consolidation of technical teams in the Warrington and Leeds offices combined with many employees choosing to continue working from home.

Demand for CloudCoCo’s telephony, collaboration, connectivity and security solutions was buoyed by the sudden and rapid transition to remote working at the onset of the pandemic. That led to a 44% spike in revenue during H120 which proved too difficult to maintain in the six month period ending March 2021. While the resale of IT hardware and telephony products expanded slightly to £1.2m, it was managed IT services that saw the brunt of the decline, down 9.6% yoy to £2.9m.

CloudCoCo’s management pointed to multi-year renewals from two of its largest customers – Vantage Motor Group and Baywater Healthcare – as evidence of progress alongside long term deals with a couple of large UK educational institutions.

Having more than halved the company’s post-tax losses (down to £575k from £1.4m in H120) the board is also looking to scale the business. To do that it has to accelerate sales, particularly when it comes to landing new contracts and further developing a partner ecosystem, though acquisitions aren’t off the table either.

Posted by: Martin Courtney at 08:42

Tags: telephony   interims   cybersecurity   managedITservices   H121  

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