CloudCoCo Group plc (AIM: CLCO.L), formerly Adept4 plc (“Adept4”), the AIM quoted provider of IT as a Service is pleased to announce final results for the year ended 30 September 2019 (“FY19”). These results reflect the performance of the legacy Adept 4 business only over what was a well-documented challenging period.
· Revenue in the year of £7.3 million (FY18: £10.2 million) and gross profit £3.7 million (FY18: £5.7million), reflecting the reduced emphasis on new business generation after the Board’s strategic review;
· Trading overheads2 fell by 23% to £4.0 million (FY18: £5.1 million), due to reduced cost base required by as a result of the Board’s decision to focus on existing customer base;
· Resultant Trading Group EBITDA1 loss of £0.2 million (FY18: profit £0.6 million); and
· Reported loss after tax of £5.2 million (FY18: £3.8 million), stated after a significant non-cash impairment charge of £3.0m against goodwill and other intangible assets.
Post Year End
· Completion of acquisition of CloudCoCo Limited on 21 October 2019, bringing a strong and experienced sales and business development team to the Group;
· The acquisition was satisfied by the issue of 218,160,568 ordinary shares of 1 pence each in the share capital of the Company, representing a total value of £7.2 million on completion;
· Appointment of Andy Mills, former Chairman of CloudCoCo Limited as Chief Executive Officer of the Company;
· Refinancing of the Group’s debt, reducing loan note debt from £5.0 million to £3.5 million and extension of a new £0.5 million working capital facility;
· Rebrand and change of the Company’s name to CloudCoCo Group plc on 29 November 2019;
· New business already being won and value of sales opportunities growing evidencing strong sales pedigree of CloudCoCo Limited team.
Simon Duckworth, Chairman of CloudCoCo Group plc, commented:
“The past couple of years have clearly been extremely challenging for the business. However, with the acquisition of CloudCoCo we believe we now have the right platform and the right team to re-invigorate the business and return the Group to growth. We are focused on four key objectives: increasing sales, reducing customer churn, reducing costs and returning to a net cash generation position. There are significant opportunities to improve performance by increasing customer satisfaction through improved customer service, combining CloudCoCo’s proven and experienced salesforce with our existing operations. This will enable more sales to the existing customer base as well as driving new customer sales, and this is already being evidenced by new business wins and a growing sales pipeline. We can now look forward with renewed confidence.“