(Alliance News) - LoopUp Group PLC on Monday said it has taken "decisive" steps to exit its Hybridium business globally.
London-based LoopUp is a cloud platform for premium hybrid communications. Its shares were down 2.7% to 1.80 pence each in London on Monday afternoon.
It said it made an application to the Madrid courts to place the associated group subsidiary, Mashmegroup SL, into the Spanish 'Concurso' administration process.
LoopUp bought SyncRTC Inc in October 2021, and it has since rebranded its large scale hybrid events technology to Hybridium.
In September, the company said it was reviewing the Hybridium go-to-market strategy
Following this, LoopUp has concluded that its "financial and operational resources should be laser focused on our strongly growing Cloud Telephony business, and not compromised by the requirements of the earlier stage Hybridium business."
"Cloud Telephony has demonstrated triple digit growth in customers, contracts, Booked ARR and revenue over the last 12 months, and as such, warrants the focused prioritisation of the Group to maximise forward-looking value creation for shareholders," it explained.
LoopUp has said the impact of exiting Hybridium will save the company about EUR1 million in cash costs over the next 12-month period and remove approximately EUR1 million of debt from its balance sheet.
LoopUp added that it remain confident of broadly meeting current market expectations for the full year 2023.
Co-Chief Executives Steve Flavell and Michael Hughes said: "While we still believe in the value potential of the Hybridium technology, we have made a broader groupwide strategic decision to exit Hybridium and focus on maximising the value of our fast-growing multinational Cloud Telephony business."
By Sophie Rose, Alliance News senior reporter
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