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Definitely on the right track and some great progress. Losses have increased as expected, but looking at the commentary these are now under control and the 2nd half of the year will again show further good progress. After a VERY long journey, the future is genuinely looking good for this business now. The next 12-24 months should see it really push on.
However, those who have been long suffering shareholders will know, don't expect good comms, or regular PR to come out. I suspect they will keep making very good progress and we'll see when the full year results are updated towards the end of the year. In the meantime - I live in hope of more regular updates/PR/news of client wins. Anything!
Looking back at previous dates for interim results announcements, it could be anywhere between tomorrow (9th June) if in line with last year, or end of the month (28th) if in line with previous years before that.
Keep you eyes peeled people. Hoping for a good jump in revenue. From what I can piece together probably an increase from £4m to £12m, but with profitability negatively impacted due to IDE acquisition.
Let’s see what reality looks like. It’s time that re-rate happens which we’ve all been talking about (hoping for) for the last 2-3 years! ????
No - it’s just the relaunch of the more computers website. Which I have to say is considerably better and probably gives them the opportunity to add an extra £1m on to revenue in the next 12 months or so. But not a game changer or anything that’ll shift the SP.
Todays trades (19th) were buys not sells as registered
Admittedly Hammered11 - it’s easier to say these things when you’re not in the red. At one stage in Adept4 days I was at 3p and SP at 0.3p! I’m confident though. Stick with it
Agree with justfacts. 1/2 year results will be out in early June where I think there will be good progress again.
But the market is nervous, liquidity and volume of this share is very low so the current SP is not any reflection on the company performance. Right now this is an amazing buy. This company will get snapped up in the next 2 years for 4-6p - in my opinion.
You do know what CLCO do don’t you? They resell services provided by the likes Microsoft, Amazon etc - not competing with them. As those big players grow and the sector in general- CLCO will grow. There are a HUGE amount of SMEs that can’t deal directly with those brand names - so will get the services via a MSP like Coco.
This medium term prediction and general trend to cloud computing/growth is one of the reasons I like this share. With the BOD it now has in place they are well positioned to capitalise on it. I’m confident the next 2 years will see explosive growth from CLCO
https://www.globenewswire.com/news-release/2022/03/04/2397038/28124/en/Analysis-on-the-Cloud-Computing-Market-to-2030-Featuring-Adobe-Google-and-Oracle-Among-Others.html
Part 3
"When MSPs own their own cloud platforms, telephony platforms or datacentres, then they have to push their customer towards using it even though, the majority of the time, it's not the right answer for them."
End
Part 2
IDE Connect added around £12m in revenue to CloudCoCo, Halpin said. The business brings with it 600 customers as well as 33 datacentre facilities across the country.
CloudCoCo now serves around 1,000 customers thanks to the IDE Connect acquisition. Halpin said this added scale will allow the business to quickly accelerate towards its £50m revenue goal.
The MSP signed a three-year contract worth £4m with a customer in November at a time when CloudCoCo was just an £8m-revenue business. These long-term contract wins will be the focus to grow the company further.
"We won that piece of new business as an £8m-revenue organisation. People are realising that there's something great going on at CloudCoCo, and we're at maybe £25m now. So if we can sign them at £8m, then we can sign them at £25m."
Despite focusing on long-term contracts, Halpin said that CloudCoCo's resell business, which was bolstered through its acquisition of Systems Assurance, will still play an important role, claiming that winning large managed services contracts can start with "just a cable sale".
"The larger MSPs have forgotten how important that responsiveness is. Large customers sometimes want just five mobile phones or a very small hardware sale, and they can't find an MSP that will answer them and quote them in a timely manner. Sometimes that can be the foot in the door to the relationship that then grows into two or three-year contracts," he said.
Further acquisitions will play a role in adding scale and new capabilities to the CloudCoCo business. Halpin said the market is "rife with potential targets" because of business owners wanting to sell up after struggling through the Covid pandemic.
He also said that many MSPs are laden with old assets that now need refreshing - an expense that many business owners do not have the stomach for.
It's a mistake that Adapt4 had also fallen into before it acquired CloudCoCo in 2019, Halpin said.
"Adept4 was a business that was very typical to a lot of the mid-tier MSPs. They were growing through acquisitions, failing, and not able to transition to what I call MSP 2.0," said Halpin.
"They had bought assets but they couldn't get away from, so they weren't able to give customers the right answer. Adept4 was a business that needed correcting, but it gave my start-up a bigger platform. And we were able to leverage that platform in terms of treating the customer base in a much better way, both from a sales perspective, a capability perspective and a service perspective."
Halpin added that, although CloudCoCo now has 33 datacentres after its IDE Connect acquisition, 32 of those are actually run and owned by larger providers
"Companies of our size shouldn't necessarily own too many assets because the hyperscale providers have got them," he said.
Part 1
CloudCoCo boss on buying IDE Connect for £250k, gunning for £50m revenue and why MSPs shouldn't own assets
MSP CloudCoCo is aiming to reach £50m in revenue over the next two years after the firm brings its acquired IDE Connect business back to profitability.
The Cheshire-based firm reported revenues of £8.1m last month for its financial year ending 31 September, up £100,000 on the previous year.
EBITDA meanwhile ballooned by 185 per cent during the same period to £745,000, while pre-tax losses decreaed to £2m, down from £3m from its fiscal 2020.
It comes after a transformational 12 months for the CloudCoCo business following its acquisitions of value-added reseller Systems Assurance in August 2021 and IDE's loss-making Connect business later that same year.
CloudCoCo acquired IDE Connect for just £250,000 after its parent company, IDE Group, was looking to cut costs of its own. It said that the subsidiary endured a difficult 2020 in which it recorded an adjusted EBITDA loss of £800,000 while revenues fell from £14.6m to £13.1m.
Speaking to CRN, CloudCoCo boss Mark Halpin said the IDE Connect business is now breaking even and even expects it to turn a profit in the second half of 2022.
"I didn't feel the former organisation necessarily knew what they had. I could see the immense amount of talent in the Connect business.
"I think there were risks [in acquiring IDE Connect], but because I've spent the last 20 years in infrastructure, datacentre and cloud, I was very confident that I knew how to do things with those capabilities.
"We did extensive due diligence on every single line item of the business, so I was able to weigh up the risk with the potential that we could unlock which is becoming apparent now."
Halpin said he brought the IDE Connect and CloudCoco management teams together in London at the start of January this year to come up with a plan to right size the business.
These cost saving measures varied from renegotiating supplier contracts, looking at matching costs or instances where the business is carrying customer costs and making it operationally more efficient.
"I don't think the operational management team had the right information shared with them and therefore they were blinded from being able to try and answer the challenges the business had, because they didn't necessarily know a challenge existed," he said.
"We're making very, very significant progress around executing on the decisions we made and locking them down, and now we just have to wait for them to mature on the P&L. When you have that concept of openness you feel this real collective force of a team working together to create a business that we're proud of now."
So a number of buys today at 1.57p. Even the sells we’re at 1.52p… yet the SP has gone backwards to 1.45p. How does that work?!
Good spot! By my reckoning I’m guessing they would have shed some unprofitable IDE / acquisition turnover. So come 1/2 year results will be tracking for full year revenue £24-£26m. So keep tracking on that rate. Will need to double revenue in the next 2 years to hit that £50m. Couple of select more acquisitions. With this DOD and non execs like Mark Ward. More than achievable. IMO
Agreed. I think some will see the lack of increase in top line revenue a disappointment, but that is already taking shape in the current financial year with the acquisitions and a very healthy contract win. All other metrics look to be now in a stable position to allow for the rapid growth this year. I believe this will be reflected in the 1/2 yer results when they get announced in June.
For those not in - get in now!
Out of interest Thumbsupuk- you said just less than a month before we should get year end results, what makes you think they’ll be mid-Feb? Looking back they typically announce first week in March. Not that I’m bothered either way by a couple of weeks - just wondering if the date had been announced?
Agree with everything you said here. Key thing for this year will how quickly they can get IDE acquisition under control / stop the loss on that business. I think they’ve done a fantastic job of the last 2 years and it’s well positioned to do very well this year.
End of 2022 - 5p (hoping for more but this SP takes a lot of shifting with very low volumes
I was going to post saying the same thing. Thats certainly above-normal volume and value for this share. Although, it doesn't take much to shift the SP up or down by 0.3p with this. But I'm hopeful of some positive trading news in the next month or two. I think last FY full results should show good progress again.
T/O from the IDE Group businesses was £13m + £8m existing business + £6m Systems Assurance = £27m. The add on the £3m from todays announcement = £30m.
So it was the IDE turnover/acquisition you missed.
All in all - positive move and to win a £3m contract shows a big business which you would thought would have a decent procurement procedure trusts them to deliver - all very encouraging.
Pretty confident more to come from this one. 5p end of 2022 is still my prediction
I think you’re right. They’ve acquired a **** show with a view of turning it around like they had done (or are well on the way with) adept4. Having been to an Adept4 AGM prior to CLCO I’d written off my investment as that WAS a shambles. IDE looks similar.
Looking far more encouraging now.
5p by end of 2022. I think that’s realistic