Notes from Oct 2020 interview with AH10 Jan 2021 13:30
BT's longest serving premier partner
750K raised last October. Strong demand for equity in Toople. They were not looking to place (and didn't need it) but were approached. 20% placing over subscribed. There was demand for double that. Balance sheet strengthened and supports growth. As a result of placing, profitability and positive cash flow will be brought forward.
Beginning to see attractive acquisition opportunities
Strong macro drivers in very fragmented market and with Covid, incredible opportunities
3 key macro drives:
1. Switch to copper and traditional connectivity to cloud based favouring companies like Toople
Well placed to act as a consolidator
DMSL acquisition starting to recoup. Toople expected to raise synergies between toople and dmsl to 50K per month by integration. Actually delivered £130K of synergies per month. Annualised synergies and saving of 1.6mn which is now being delivered. No jam tomorrow
Lots of confidence here.
Telecoms sector very exciting. Critical demand for services offered by toople etc...Very positive environment for toople
2 - government focussed on upgrading to 5G, replacing copper to fibre.
3 - Move to Working from home culture
Telcoms sector very robust and driven by enforced change
Toople board considerable sector experience with organic and M&A growth
5 new contracts and a contract extension in last three months.
August 2020 order intake was 14% up on Aug 2019. September 2020 was also up on Sep 2019.
Final results due imminently.
There can be no placing until next results year.
Overall business is in much better shape than a year ago. DMSL was already a cash generative business. Going forward expect more acquisitions and macro drivers to drive 'substantial growth' for Toople back towards 1p plus.