TIDMCALL
RNS Number : 8075U
Cloudcall Group PLC
17 July 2018
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
17 July 2018
CloudCall Group plc
("CloudCall", the "Company" or the "Group")
Trading update for the six months ended 30 June 2018
-- Revenue up 31% vs H1 2017* with recurring revenue up 37%
-- Users up 34% vs H1 2017 to 27,000
-- H1 2018 - best half to date for new orders
-- Launched integrated messaging services to sit alongside existing telephony products
-- Available cash resource is expected to be in the range of GBP4.8m to GBP4.9m
CloudCall (AIM: CALL), a leading cloud-based software business
that integrates communications technology with Customer
Relationship Management (CRM) platforms, announces the following
trading update for the six months ended 30 June 2018:
The Company is pleased to report robust trading and growth, with
revenues for the period expected to be GBP4.1 million, an increase
of 31% against H1 2017*, and recurring revenues up by 37% compared
to the same period.
During the half, the Company continued to see growing demand for
its products and services from both new and existing customers. Net
new users climbed at an average rate of 580 per month, taking the
total number of users at the end of the period to 27,000, an
increase of 34% against H1 2017.
As previously announced, in May, the Company launched its
Unified Communications Service ("UCS"), which provides CRM
integrated internal and external messaging capabilities that can be
operated alongside the existing telephony from a single
interface.
After a successful beta trial, UCS for Bullhorn was released in
June. Early indications of uptake have been very encouraging with
nearly 70% of our existing Bullhorn customers approached so far
either signing-up, booking live product demonstrations or
requesting product trials which it is hoped will eventually feed
through into higher recurring revenues per user.
The Company's strategy to focus on key CRM partnerships in the
recruitment and staffing sector continues to work well and drive
growth. Significant investment has been made to develop new
business sales and marketing capabilities, and several recent
joiners recruited with specific sector experience will be dedicated
to selling to this sector. Furthermore, to be closer to where a
sizeable portion of that market is centred, the Company has
recently opened a small London sales office.
Whilst it took slightly longer than anticipated to recruit and
train this initial 9 sector specialist sales staff, they have now
all completed their training and are building pipeline and
beginning to close new business. The Board expects to see their
contribution starting to show through in user and revenue growth by
the time it delivers its full year trading statement early in the
new year.
The Board intends to continue investing in sales and marketing,
with a small sales team being assembled in readiness for the
release of UCS for Microsoft Dynamics which is expected to be
available by Q4 2018. After initial assessment of demand, a
decision will then be taken regarding how quickly to grow that
team.
Looking beyond its current success with Bullhorn and the
recruitment and staffing sector, and not withstanding plans already
in progress to capitalise on the expected sizeable opportunity that
will be presented by its new Microsoft Dynamics offering, the
Company also plans to expand its addressable market further and
accelerate growth in 2019 and beyond by starting to integrate
additional relevant CRM partners with full UCS functionality later
in 2018.
The Company has effective available cash of GBP4.9 million made
up by cash at bank of GBP3m (including an R&D tax credit of
GBP0.6m received on 4 July 2018) and the undrawn Barclays'
revolving credit facility of GBP1.9 million.
The solid start to 2018 combined with the enhancements to our
product range and the recently expanded sales and marketing
functions underpins the Board's confidence for a strong finish to
2018 translating into a strong start to 2019.
Simon Cleaver, CEO of CloudCall, commented:
"The first half of this year has played out largely as we
expected it to. Solid and consistent growth in our sales numbers
has continued, whilst we put the foundations in place that we
expect to underpin further growth by making excellent progress with
ongoing investments in our new integrated Unified Communications
service and the expansion of our sales teams with high calibre,
sector experienced staff.
In the last few weeks we've begun receiving orders for the new
UCS for Bullhorn products from our new sales people, which leads me
to believe we'll see a strong finish to 2018. The nature of any
recurring revenue business means this current activity will only
have limited effect on current year revenues, but it should provide
an excellent springboard for 2019."
* Revenues are calculated under new IFRS 15 revenue recognition
guidelines. As previously reported, impact to the Group's revenues
as a result of the new policy is immaterial (<GBP100k). Revenue
growth % is reported after restatement of the prior year
figures.
For further information, please contact:
CloudCall Group plc Tel: +44 (0)20 3587
Simon Cleaver, Chief Executive Officer 7188
Paul Williams, Chief Financial Officer
Cenkos Securities (Nominated Adviser and Joint Tel: +44 (0)20 7397
Broker) 8900
Stephen Keys / Callum Davidson / Nick Searle
Arden Partners (Joint Broker) Tel: +44 (0) 20 7614
Steve Douglas / Ciaran Walsh 5900
About CloudCall Group Plc
CloudCall is a software and unified communications business that
has developed and provides a suite of cloud-based software and
communications products and services. CloudCall's products and
services are aimed at enabling organisations to leverage their
customer data to enable more effective communications.
The CloudCall suite of software products allows companies to
fully integrate telephony and messaging capability into their
existing CRM software, enabling communications to be made,
recorded, logged and categorised from within the customer
relationship management (CRM) system with detailed activity
reporting and powerful business intelligence capable of being
easily generated.
At the end of June 2018, the Company had approximately 140 staff
based predominantly in Leicester and London (UK), Boston (US) and
Minsk (BY), with 27,000 end-users relying on CloudCall technology
to power their daily communications.
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END
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