In a trading update for the six months ended 30 June, the AIM-listed firm said it had secured a number of “landmark accounts” wins including a major European investment management association, a leading television broadcaster in Australasia, the world's largest private dispute resolution provider and numerous major international law firms as well as a £2.34mln contract renewal with global law firm Clifford Chance.
However, the company said that due to “subdued revenue” across its long-term customer base, which it believes has been driven by general macro-economic factors, and more senior staff being diverted into management and training activities to accommodate a “dramatic increase” in pod staff, revenue and earnings (EBITDA) for the full year were now expected to be 7% and 20%, respectively, below market consensus.
Looking ahead, LoopUp said it planned to accelerate the roll out of video functionality on its flagship product, initially announced last month, in the third quarter of the year which the group said would expand its addressable market and offer an additional source of pay-as-you-go revenue from its existing customers.
The company added that its “aggressive recruiting” of pod staff, the number of which jumped to 112 from 63 at the end of its 2018 financial year, had necessitated more training but would yield “material future growth and value”.
Steve Flavell and Michael Hughes, LoopUp’s co-chief executives, said that the group was currently experiencing “broad macro-economic headwinds” in the business and had had to take on board some “learnings and growing pains” from the expansion in the size of its pod teams.
However, the CEOs added that they had continued to see “excellent demand” for LoopUp’s product and were confident in the firm’s ability to deliver “strong future growth”.
In early trading on Wednesday the shares were 48.9% at 120p.
--Adds share price--