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cloudBuy reduction in revenue from 2016 contracts impacting 2018 a 'disappointment'

cloudBuy reduction in revenue from 2016 contracts impacting 2018 a 'disappointment'

Thu 7 Feb 2019 22:06 by about : trading updates - 0 Comments - 507 words


cloudBuy, the global provider of cloud-based eCommerce marketplaces and B2B buyer and supplier solutions, expects to announce full results for the year ended 31 December 2018 on 20 March 2019.

As previously announced, contracts won in 2016 continue be positive for the Company, although non-renewal of older legacy contracts and a continual decline in Company Formation revenue has resulted in revenue falling 25% year on year. Cost savings have continued to be implemented in 2018 resulting in a reduction in Operating Loss before share based payments of approximately 25% compared to 2017.

We continue to work with NHS Shared Business Services to onboard individual Clinical Commissioning Groups onto PHBChoices. With confirmation in the recently published 10 Year Plan that the NHS remains committed to personalisation as a key initiative, the pace of onboarding is increasing.

The move to profit and cash flow break-even remains the Company's key priority.  Year end cash is expected to be £769,000 with a R&D tax credit of £124,000 received post year end in January 2019, which would ordinarily have been received in 2018.

The Company is currently engaged in two opportunities which together would provide adequate financing to enable the Company to achieve cash flow break even. Should these opportunities not materialise the Company will seek new funding including entering into discussions with Mr Roberto Sella to draw down a portion of the remaining £1.7 million of the debt facility entered into on 8 December 2017.

Ronald Duncan Executive Chairman and CIO commented

"The reduction in revenue in 2018 is a disappointment and results from lower revenue from contracts won in 2016 and a number of legacy contracts ending and not being replaced by new opportunities. The business strategy remains to focus on revenue from existing customers in the UK, Canada, Singapore and Australia with significant growth expected from PHBChoices in 2019. The first 5 weeks of 2019 have shown good progress from PHBChoices although from a lower base than we had expected."

These articles are summaries / highlights and dont always include all financial news updates. Check at company website INVESTORS INFORMATION for full published results.

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