CloudCoCo Group (CLCO) H2 2024 earnings summary

Executive summary

• Revenue grew 6% year-over-year to £27.5 million, with e-commerce channels doubling their contribution to £7.4 million, now 27% of total sales.

• Completed sale of CloudCoCo Limited and CloudCoCo Connect Limited post year-end for £7.75 million, enabling full repayment of £6.2 million in loan notes and leaving the Group with minimal debt.

• Strategic shift to focus on scalable e-commerce and IT procurement, with new leadership and a leaner operational structure.

Financial highlights

• Trading Group EBITDA fell 16% to £1.6 million (FY23: £1.9 million) due to sector challenges and margin pressures.

• Gross profit declined 10% to £7.6 million (FY23: £8.4 million), with gross margin dropping to 28% from 33% year-over-year.

• Loss after tax widened to £3.0 million (FY23: £2.1 million), with basic and diluted loss per share at (0.45)p (FY23: (0.30)p).

• Cash at bank increased to £1.0 million (FY23: £0.8 million), with a net cash inflow of £0.2 million for the year.

• Net assets at year-end were negative £2.1 million, but post-disposal gain of £3.5 million from the sale of subsidiaries significantly improved the balance sheet.

Outlook and guidance

• Focused on expanding consultancy and investment activities to broaden the revenue base and accelerate sustainable profitability.

• Confident in navigating economic challenges and achieving strategic objectives, with a strengthened balance sheet and minimal debt.

• Plans to shift more e-commerce sales to the company’s own website to improve margins and brand visibility.