Revenues, profits and margins in the opening six months of 2017 were all well ahead of last year, driven by “continued strong sales and customer loyalty”.
The AIM-quoted company saw underlying earnings (EBITDA) almost double to £1.6mln (H1 2016: £0.9mln), thanks in part to an improved like-for-like margin of 76.8% (H1 2016: 73.7%).
Happy customers, higher revenues
A 44% year-on-year jump in revenues to £8.65mln (H1 2016: £6mln) also helped, with all of the sales coming from LoopUp’s flagship audio conferencing product.
The firm is based in London but also has offices in the US, which now accounts for around half of overall revenues after a “particularly strong” performance in the half.
LoopUp saw its established base of customers – those who have been using its services for a year or longer – grow by more than 9% during the period (H1 2016: 8.3%).
The solid trading allowed the company to pay down its final debt instalment of £0.3mln earlier in the year, which leaves it debt-free. As of 30 June, the group had a net cash position of £1.6mln.
LoopUp building up ‘significant momentum’
“LoopUp is benefiting from significant momentum and the 44% growth in LoopUp revenue exceeds FY2016 and FY2015 growth rates both as reported on a pound-sterling basis and on a constant currency basis,” said co-chief executive Steve Flavell.
“The second half of 2017 has started encouragingly with some major new customer wins set to roll out.
He added: “We remain confident for the full financial year as well as in our ability to deliver growth beyond that.”
As Flavell hinted at, LoopUp has carried over its fine form into the second half of the year and it is continuing to see strong demand for its product.
Among the new customer wins is a major multination consulting organisation, a premier investment banking advisory firm and a leading UK building society, which should all roll out in the coming months.
In late afternoon trade, LoopUp shares were over 15%, or 31p higher at 227.5p.
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