CloudCoCo Group (CLCO) H1 2025 earnings summary

Executive summary

• Completed sale of legacy businesses for £7.9m, enabling full repayment of £6.2m debt and strengthening the balance sheet.

• Refocused on e-commerce and IT procurement, with operational momentum building in MoreCoCo and Systems Assurance.

• Revenue for H1 2025 was £3.4m, down 21% year-over-year due to temporary vendor issues, but Q3 2025 shows a rebound.

• Gross margin improved to 7% (H2 2024: 5%) through better pricing and automation.

• Cost reductions and efficiency improvements implemented, with administrative expenses down 13% and PLC costs down 21%.

Financial highlights

• Revenue of £3.4m in H1 2025 (H1 2024: £4.3m); 89% from e-commerce sales.

• Gross profit stable at £228k; gross margin up to 7% from 6% year-over-year.

• Trading Group EBITDA of £26k (H1 2024: £21k), reflecting underlying profitability.

• Net cash outflow of £224k; cash balance at £818k after debt repayment and investment.

• Profit for the period of £2.77m, driven by £3.55m gain on disposal of subsidiaries.

Outlook and guidance

• Focus on scaling trading business to achieve consistent monthly cash generation.

• Priorities include improving profitability, growing recurring revenues, and expanding consultancy and partnerships.

• Executive Directors have reduced salaries by £100k p.a. from April 2025 to support cost discipline.

• Confident in ability to execute strategy and build a cash-generative business despite economic headwinds.