Cloudcoco’s results don’t convince investors

AIM-listed IT service provider Cloudcoco (LON:CLCO) saw its share price decline by 15.35% to 0.91p (as of 10:40 GMT) as revenues for the year ended 30th September fell by 28.4%. The board’s decision to focus on the current client base cut costs but by less than revenues fell, resulting in the company booking an EBITDA loss for the year.

Chairman Simon Duckworth commented: “The past couple of years have clearly been extremely challenging for the business. However, with the acquisition of CloudCoCo we believe we now have the right platform and the right team to re-invigorate the business and return the Group to growth. We are focused on four key objectives: increasing sales, reducing customer churn, reducing costs and returning to a net cash generation position. There are significant opportunities to improve performance by increasing customer satisfaction through improved customer service, combining CloudCoCo’s proven and experienced salesforce with our existing operations. This will enable more sales to the existing customer base as well as driving new customer sales, and this is already being evidenced by new business wins and a growing sales pipeline. We can now look forward with renewed confidence“.