Toople PLC Trading Update (2737P)
November 16 2016 - 1:00AM
UK Regulatory
TIDMTOOP
RNS Number : 2737P
Toople PLC
16 November 2016
16 November 2016
Toople Plc
("Toople" or the "Company" or the "Group")
Trading Update
Toople Plc (LSE: TOOP), a provider of bespoke telecom services
to UK SMEs, is pleased to provide the following update on the
Company's progress since its IPO.
The Company launched Toople.com in May this year, offering
broadband, VoIP and landline services and mobile phone packages to
small businesses. Since launch, the Company has been steadily
increasing the number of customers it attracts to its platform, and
is now provisioning over 200 new orders on average per month. The
Directors are targeting a significantly increased average monthly
order rate during 2017.
In addition to its SME customer base, the Group also provides
telecoms services (minutes, lines, broadband, cloud PBX) and
billing functionality, through the Company's bespoke telecoms
platform, Merlin, to a number of wholesale customers. These
services are provided on a licence fee and provision agreement and
Toople also makes gross margin ongoing in addition to the monthly
licence fee revenue. While the wholesale offering is not deemed to
be a core part of the business, there has been a notable increase
in the number of orders for these services, and the Company
continues to monitor and review the potential opportunities going
forward.
Further to this, Toople is pleased to announce that it has
recently been accredited by over 30 of the UKs biggest business to
business cashback and comparison sites, with the most notable
listings on; uSwitch, Quidco, Topcashback, and Broadband Genie.
Orders on line and over the phone have already started to be
received through these website. This further supports the expansion
of the Toople.com brand in the B2B segment.
The management team continues to use its telecoms experience to
identify marketing opportunities that management considers to offer
the best return on investment. The current cost of customer
acquisition ranges between GBP40 and GBP91 per customer, and the
Company expects to achieve a 30% margin over the contract life of
the customer. The Company also expects to reduce this average
customer acquisition cost as it attracts more customers to its
platform. In what is a dynamic market, the Group is also exploring
additional and other, cost effective routes to market.
Customer service is central to its strategy. Toople.com aims to
attract and retain its customers by delivering "right first time"
UK based customer service. It is therefore pleased to have achieved
an average customer satisfaction score of 8.8 out of 10 via
Trustpilot, which is significantly higher than the average scores
achieved by the leading companies operating in the sector.
Andy Hollingworth, CEO, Toople Plc, said, "Toople Plc aims to
attract customers to its web site via cost effective digital
marketing. It allows those customers to select the right telecom
products for their businesses using its proprietary Merlin software
which can provide an instant quote based on the best network
available from TalkTalk Business, BT Openreach, BT Wholesale and
Vodafone. This software means Toople.com is highly scalable. This
scalability, combined with the orders we have received to date and
our tight cost control, means I am comfortable that the Company has
sufficient cash resources to pursue its current strategy. We
believe that our customer activity and the feedback we have
received to date demonstrates that Toople.com definitely has a
market opportunity in the small business segment."
A date for the announcement of Full Year results will be
communicated to the market in due course.
- ENDS -
For further information:
Toople PLC 0800 0499 499
Andy Hollingworth, Chief Executive Officer
Cairn Financial Advisers LLP 020 7 213 0880
Emma Earl / Rebecca Anderson, Financial Adviser
Vicarage Capital 020 3651 2911
Broker
Rupert Williams / Jeremy Woodgate
Redleaf Communications 020 7382 4730
Rebecca Sanders-Hewett toople@redleafpr.com
Sarah Fabietti-Dallison
Sam Modlin
This information is provided by RNS
The company news service from the London Stock Exchange
END
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