LONDON (Alliance News) - Toople PLC shares dropped Thursday after its half-year loss widened, though it remained "upbeat" about the UK's economic conditions.
Shares in Toople were down 13% to 0.785 pence in afternoon trading.
The broadband provider reported a widened pretax loss of GBP714,033 for the six months ended March 31 from GBP603,763 a year before.
Revenue increased to GBP689,769 from GBP654,721 last year. However, administrative costs at the company rose to GBP770,897 from GBP661,983 last year.
Toople said a "complete review" was undertaken of supplier contracts, particularly the effectiveness of marketing, brand awareness and sales spending. The company expects this review to deliver a reduction in administrative expenses, "without impacting revenues".
Toople also noted that gross profit rose 7% in the recent half from the second half of last year, as a result of "growth in the higher-margin direct business".
There was a 63% increase in the sales of revenue generating units - meaning a broadband connection, hosted telephony seat or mobile sim sale - compared to the immediately previous six months.
Toople also reported a 38% increase in the total number of customer invoices raised and a 74% increase in the gross profit on its direct business customers, both compared with the second half of financial 2017.
Toople increased by more than double its like-for-like revenue generating unit orders taken in the first three months of 2018 compared with 2017.
Looking forward, the company plans to continue to invest in direct digital marketing to "drive further growth in customer numbers and revenue generating units".
Chief Executive Officer Andy Hollingworth said: "The first half of this financial year has started well with continued growth in our SME client base. The decision taken in late 2017 to bring in-house our direct sales team has shown very positive results, with a 113% increase in orders in the first three calendar months of 2018 compared with the same period last year, a significant reduction in pre go-live contract cancellations quarter on quarter and lower costs of customer acquisitions. We expect this trend to bring even greater benefits in the second half as we refine our go-to-market strategy and deliver cost savings into the business."
Toople Plc (TOOP)