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In the absence of a rising share price and no real decent news the next couple of months are going to be interesting. With cash burn high they should be looking at another round of funding soon. Will be interesting to see the take up as discussions probably happening now..... Still think the model is right but they were too small to go so early in such a new market. The big boys are coming to the party in force now and every day that goes by Out lose a bit of their competitive edge. Growth needs to happen real quick now or they are just going to fizzle away.

hi Kaching, Rise.co was a division of Fasthosts offering business hosting when Fasthost was headed up by CEO Andy Burton who was also the founding Charirman of the Cloud Industry forum. Rise transferred over to Outsourcery in October, You can see on their website they are a division of Outsourcery PLC. Andy Burton became a non exec of Outsourcery in march but no mention of Rise anywhere..........I cant think of any good reason why not. Rise have been aroubd a whole and all no published figures as a seperate entity if you do some research you can work out roughly where they were before the move.

Kaching I hear what you are saying and I do think my post was worthy of a response. If you take out the Rise revenue from the MRR numbers then they never hot their targets, this is a big miss on such small overall numbers. Rise wasn't in the plan when it was set out so that should be bonus above and beyond predictions but instead it allowed them to achieve their target. Also there is no reference to Rise in the results so how come you have such confidence that without another MRR base to reap the reward from the business plan falls in line with future predictions?

I meant to add that they took on the Rise platform around October time so MRR would have been added between August and EOY results in December.

Looking at the half year results they state that MRR at end of August 2013 was at .4M with an ARR of 5.1M. When you look at the full results to December they quote MRR at .6M with ARR at 7M. What surprises me is no mention of taking on the Rise platform and customer base which would have added a large chunk of MRR. This actually means the organic growth of the Outsorucery business is very little for a huge amount of cash burnt. The current cash burn rate means they are going to be running short of cash come June / July so expect to see more fund raising...... Long way to go for this to even come close to breaking even......Lots of smoke and mirrors here.

The results make for interesting reading and I need to do some proper evaluation. Cant believe they only have £6m of the £17M they raised and they must be due another placing soon as burning through cash at an incredible rate.

Hi, I read through your write up and a very good summary. one thing to be careful of is the below comment: 1)Outsourcery (OUT) ………. Outsourcery was admitted to London's Alternative Investment Market (AIM) on 24th May 2013. It has a Market Cap of £40m with what the City likes to call “High Operational Gearing”, which basically means they have high fixed costs which is a killer if they aren’t growing revenue quick enough to breakeven, but it also means that once breakeven is achieved then profit and free cash flow should leap exponentially as the revenue keeps growing and costs don’t (which explains what looks like a high Market Cap at the moment) You have to remember that most of the investment is in hardware which will need to be continually expanded in line with any growth and you need huge volumes to make this economically viable. You also have to bear in mind that hardware gets outdated very quickly and constant 3 to 4 year refresh cycles suck up a lot of cash. I have to wonder if OUT spent all that money building the platform 3 to 4 years ago is the money they are raising now to refresh that? I know they say to build a new cloud based on government standards but when and how will they refresh the hardware on the old platform? Based on numbers it looks like they have hardly any volume for the investment made.

Hi, You seem to have overlooked SCC. Key Facts: Profitable track record since 1975 Rigby Group turnover £1.6 billion SCC UK turnover £665.30 million Over 5,000 employees Supporting over 5 million users Leading partner to all key vendors Carbon Zero for Recycling and Data Centre operations Awards SCC – 1st UK Pan Government Accreditation for secure cloud services SCC – Electrical and Electronic Equipment Recycler of the Year at the National Recycling Awards 2013 SCC – Server and Storage Specialised Partner of the Year 2013 for UK, EMEA and Global. Rigby Group – International Deal of the Year at Business Insider’s Midlands Dealmaker Awards Rigby Group – UK Family Business of the Year at the Private Business Awards 2013 They already have a secure CESG IL3 Secure Cloud Platform and a whole range of services you can consume: http://www.scc.com/services/transform/community-cloud-smtc/ IL2/3 Infrastructure As A Service IL2/3 Compute as a Service IL2/3 Storage as a Service IL2/3 Backup As A Service IL2/3 Software as a Service IL3 Mail – Microsoft Exchange The interesting thing about this space, like the dot com boom, is who can keep going the longest until they become profitable. Some will make it, some will get sold along the way and some will simply run out of cash. In this market of uncertainty as an IT director I know who I would choose to host my critical IT services. It wouldn't be a company barley turning over £5m and burning cash at twice the pace......