(Alliance News) - Cloudcoco Group PLC on Monday said its revenue decreased in its most recently ended financial year due to focus on existing customers and cancellation of major contract.
CloudCoCo was previously known as Adept 4.
The AIM-listed IT services provider said its pretax loss widened in the year to the end of September 2019 to GBP5.6 million from GBP4.0 million a year earlier, as revenue fell to GBP7.3 million from GBP10.2 million. The company said revenue declined amid decision to focus on existing customers rather than new sales generation.
Cloudcoco said its revenue in the financial year was further hurt by the cancellation of a contract by a major customer. The company said it continues to dispute the validity of the cancellation of this contract and is currently seeking legal redress.
Cloudcoco said it has reduced its administrative expenses to GBP5.6 million from GBP4.4 million year-on-year.
"The past couple of years have clearly been extremely challenging for the business," said Chair Simon Duckworth.
"There are significant opportunities to improve performance by increasing customer satisfaction through improved customer service," continued Duckworth. "We can now look forward with renewed confidence."
Cloudcoco shares were trading 15% lower in London on Monday at 0.91 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Cloudcoco (CLCO)