TIDMLOOP

RNS Number : 1494T

LoopUp Group PLC

16 July 2020

LOOPUP GROUP PLC

("LoopUp Group" or the "Group")

Trading Update

LoopUp Group plc (AIM: LOOP), the premium remote meetings company, is pleased to provide the following trading update for the six months ended 30 June 2020.

Highlights

 
                         Six months     Six months 
                          to             to 
                          30 June 2020   30 June 2019 
                                                       Year-on-year 
GBP million               (unaudited)    (unaudited)    growth 
Revenue                  31.9           22.3           43% 
Gross profit             22.8           15.0           52% 
Gross margin             71%            67%            +400 BPS 
Adjusted EBITDA (1)      12.2           3.5            249% 
Adjusted EBITDA margin   38%            16% 
Cash                     8.2            3.8 
Net debt                 5.4            11.5 
 

1. Earnings before interest, taxation, depreciation and amortisation, adjusted to exclude non-recurring transaction costs, exceptional reorganisation costs and share-based payments charges

-- H1 2020 revenue increased by 43% to GBP31.9 million (H1 2019: GBP22.3 million), driven by the large-scale migration towards working from home associated with Covid-19.

-- H1 2020 gross profit increased by 52% to GBP22.8 million (H1 2019: GBP15.0 million). Gross margins also increased by approximately 400 BPS to 71% (H1 2019: 67%), driven by particularly strong growth in our higher margin LoopUp Meetings and Event by LoopUp lines of business.

-- H1 2020 EBITDA increased by 249% to GBP12.2 million (H1 2019: GBP3.5 million), driven by the material increase in gross margin, as above, combined with a modest decrease in staffing and overhead expenses versus H1 2019. EBITDA margins more than doubled to 38% (H1 2019: 16%).

-- The Group ended H1 2020 with cash of GBP8.2 million (H1 2019: GBP3.8 million) and materially reduced net debt of GBP5.4 million (H1 2019: GBP11.5 million). This is prior to receipt of an expected R&D tax credit of approximately GBP1.3 million during Q3 2020.

Outlook

Although it is difficult to predict near term developments in working practices and business climate, and also noting that seasonal usage is naturally H1-weighted, we expect to exceed market expectations for the current financial year to 31 December 2020 in terms of revenue, EBITDA and cash generation.

Investor Event

The Group will hold a virtual presentation to provide an operational update on the business for analysts, retail investors and institutional investors - both existing and potential - at 10.30am on Wednesday 29 July. To register for this event, please visit: https://bit.ly/2CCI6R3.

Note:

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

For further information, please contact:

 
LoopUp Group PLC                                  via FTI 
Steve Flavell, co-CEO 
 
                                                  +44 (0) 207 886 
Panmure Gordon (UK) Limited                        2500 
Dominic Morley / Alina Vaskina (Corporate 
 Finance) 
Erik Anderson (Corporate Broking) 
 
                                                  +44 (0) 207 260 
Numis Securities Limited                           1000 
Simon Willis / Jonny Abbott (Corporate Finance) 
 
                                                  +44 (0) 203 727 
FTI Consulting, LLP                                1000 
Matt Dixon / Emma Hall / Jamille Smith / Shamma 
 Kelly 
 

About LoopUp Group plc

LoopUp (LSE AIM: LOOP) is a premium remote meetings solution. The solution provides a reliable, secure and incredibly simple experience that is optimised for external guests on business-critical meetings, such as professional services firms' communications with their clients. Over 5,000 organisations worldwide trust LoopUp's award-wining SaaS solution with their remote meetings, including more than 20 of both the world's top-100 law firms and top-100 private equity firms, as well as enterprises such as Travelex, Kia Motors, Planet Hollywood and National Geographic. The Group is headquartered in London, with offices in San Francisco, New York, Boston, Chicago, Dallas, Los Angeles, Denver, Cardiff, Milton Keynes, Madrid, Berlin, Malmo, Hong Kong, Sydney and Barbados, and is listed on the AIM market of the London Stock Exchange (LOOP). For further information, please visit: www.loopup.com .

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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