CloudCoCo Group (CLCO) H1 2024 earnings summary

Executive summary

• Revenue grew 11% year-over-year to £14.3m for H1 2024, with 62% from Managed Services and a 125% surge in e-commerce revenues.

• Trading Group EBITDA rose 33% to £1.2m, while gross profit remained flat at £4.3m, reflecting a margin drop to 30% due to lower-margin e-commerce sales.

• Loss before tax was £1.2m, unchanged from H1 2023, with basic and diluted loss per share at (0.15)p.

• 24 new customers were added, and customer satisfaction reached 97.8% in June 2024.

• Strategic review underway to identify value and improve financial position, with ongoing support from major lender MXC.

Financial highlights

• Revenue: £14.3m (H1 2023: £12.9m), up 11% year-over-year.

• Gross profit: £4.3m (H1 2023: £4.3m), gross margin 30% (down from 34%).

• Trading Group EBITDA: £1.2m (H1 2023: £0.9m), up 33%.

• Loss before tax: £1.2m (H1 2023: £1.2m).

• Net cash outflow: £0.2m, with £0.7m cash inflow from operations offset by lease and investment outflows.

Outlook and guidance

• Focus remains on accelerating sales, delivering high customer support, and driving operational efficiencies.

• Cost-saving measures and efficiency improvements expected to strengthen cash flow and financial position.

• Ongoing strategic review to maximize value and improve trading performance.