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I di say in an earlier post (when the results were released) that by my calculations they were going to run out of cash by June....So much for being cash generative in 2015. With churn and lack of announcements and no more massaging the percentage growth figures by comparing to same period in previous year rather than previous period it will be hard to show an significant growth compared to cash burn. Cash is still going out the door at an alarming rate.; I will ask a question that I have asked before. Can a business of this size that has burnt through £50m really justify having 2 CEO's on £250k each. Swapped for shares last year I know and not sure on this year but come on, really?

Is the next round of funding coming?

Two that were won shortly after the previously announced one :)

Judging by the silence I am not sure we can expect to see any strong growth. I will be interested how much some of the earlier large contracts that were due to ramp up have added to the MRR. There were some that were starting small and growing over the next year. This will be the first set of results they lose out on the ability to claim wild growth figures against previous period due to the hidden addition of the RISE customers. This time they will be comparing against H! to last year and I expect we will only see single digit / low teen digit growth in MRR which for a company of this nature is not good enough. They need to scale fast.

It was also the strongest in 2013 and 2014. The problem they have is they never got enough traction early on and they have been overtaken by many in their ability to deliver. The vendors loved people like OUT a few years ago and were prepared to help them build clouds and gain some momentum. They have now caught up / gone past the like of OUT with their own offerings. There is till a place for people like OUT in the market but they had their business model wrong early on and are now too far behind the curve. There are much better independent cloud companies offering the same services with a much more financially stable business that is generating profit / cash I think this will either be swallowed up in the next year or it will go private and dramatically scale back costs of own infrastructure and focus on reselling others services as an aggregator. That only works if they can get their partner model working, but to date they don't seem to be able to manage that.

5 years since they sold the mobile business to focus on the cloud. A reminder of the plan: http://www.londonlovesbusiness.com/entrepreneurs/famous-entrepreneurs/meet-piers-linney-the-new-dragon-with-plans-to-build-a-500m-business/5791.article Only £493m to go.

I had to laugh at "Easier to explain Skype for business than Lync, which no one has ever heard of" Surely the way to explain Lync to someone is that it is just the same as Skype but for business. People also know they can go on the web and download Skype and pay MS directly to use it. Surely people will use a company that carries 1/3 of all international call traffic on their platform alre3ady for consumers than risk using someone like OUT. Says it all really....

Ka, what are your views at this time? How I see it: Last news of a decent contract 2 months ago. All these deals with Voda, HP, Virgin etc plus 500 partners selling their solution and nothing to shout about. We know they are going to have to do another cash call, but when? Lync rebranded Skype for business and MS going direct (Out advantage slowly shrinking) G Cloud accreditation in place and only 1 deal worth talking about. They have been at this for years now and prices for hosted services are only going one way....down. I think they are stuck now and the slightest bit of good news will see this rise and the slightest piece of bad will see it fall. I cant see this lasting another 12 months now. In my view it will either get taken private or be sold and its recurring's consolidated in to a much larger platform.

We will see for certain in time. During the last round of funding they said they would get to a cash positive situation in 2015 so we will see if that is still the case. As suspected though there isn't a flood of orders coming in from the strategic partners or the G cloud. One notable win to date from the G cloud and 2 from the strategic partners. If Vodafone, HP, Virgin media cant get some sales going through there 1000s of partners and the 500 partners Out has direct, not to mention the direct sales force for public sector, you have to question the model. That is a lot of people talking about their offering to a lot of customers and yet very little results.

http://www.theregister.co.uk/2015/03/30/outsourcery_2014_revenues_linney/

Reading the below statement: The Group had gross cash at 31 December 2014 of £2.5 million (2013: £6.3 million). During the course of 2014 the Group raised total equity funds of £2.3 million (net of expenses). These funds continue to be deployed to scale the business. That reads like they have gone through about £6.1M in a year. So at the rate of £500k a month cash burn and starting the year with £2.5m, that would suggest they have 2 months before they run out. There will be some improvement in cash burn so could be 3/4 months. I did look at the new infrastructure as some of the burn but with he increase in leases I assume that the HW for this was leased. The software will all be monthly subs to Microsoft. Have I missed something or is there a cash call looming?

Non recurring down from £1.1m to £300k that shows what little new business has been done. Didn't take long for me to get to the obvious statement: "Recurring revenues, which represent 96% of total revenues, increased by 73%. This demonstrates a year of strong growth for Outsourcery. A true statement year on year comparison but most of that growth came in the second half of the previous FY from the not talked about Rise integration. A first half of the FY to the second half show ve3ry little improvement.

Have announced they are a global elite launch partner Skype for Business. http://fw.to/AIa3a1i

Thanks and don't want to see it fail and not a disgruntled employee but sharing the facts to try and save some people from getting sucked in to the hype. 2e2 Partnered with lots of these people and they went bang along with many others. OUT bought the firewalls from Juniper and the hardware group installed them for OUT. They would have got a heavy discount but Juniper and HG will get some press coverage and a nice case study. Neither of those companies are mugs and will be a sound deal for them. Partnering is great and to be honest anyone can become a MS or Dell partner and they will work with you and invest with you if you can bring them some business. If you read my post on the recent Virgin announcement you will se what winds me up, the misleading information. They released exactly the same press release a year before and no business came from it. They did the same thing with offering Lync through all the HP SMB partners and a year later the same announcement, nothing came from that either. What happened to the Pearsons deal that they were going to role out across all their global businesses? they raised cash to expand their datacentres in to Asia to deliver this deal. The partnership with Vodafone? All really big names and a lot of hype but where are the rewards. All these big names and all these partners and they still cant get to a cash positive position.

You are missing the point., They built a platform O-Cloud that offers IAAS, Enterprise voice Lync and CRM. That platform had approx MRR of £700k at the end of last FY. They then spent a load of money (from Dec 13 placing) building a new platform Secure O-Cloud, with the new Juniper firewalls to protect it, which is now ranked official (IL3) The partners would have given them significant discount (Circa 50%) off list but that is still a chunk of change they had to find hence the Dec 13 placing. In my post I said this: "They have just spent more money on top of what they have already spent to try and win some business in a new area (public sector) due to their failings to find any real growth in the private sector." So you mention the two platforms need to run separately. The new platform will have all the new government business they win delivered from it, The existing platform, that currently carries all of their approx £700k of MRR, will have the existing and future non government services on it. That's what is old technology and will need to be refreshed causing more cash burn. I absolutely get this and we can argue about details all we like but the company have gone through circa £50m in 5 years to build a business that has recurring's of less than £10m a year and is still burning cash. So not sure it is me that needs to get with the program......

The Juniper firewalls they have just put in are to give them the security level they need to get the platform up to Official (IL3) standard. They are a replacement of their current Firewalls that weren't capable of meeting the criteria. I would be surprised if they even made up 5% of the platform costs. They have just spent more money on top of what they have already spent to try and win some business in a new area (public sector) due to their failings to find any real growth in the private sector. The majority of the investment is in the hardware platform that they run their Saas offerings, Lync, CRM and their IAAS play in Ocloud and Secure Ocloud. This is what was built some time ago and where a lot of the expense will be to refresh.

Will be good to see if they tracking to the below, · Results in line with Board's expectations and on track to achieve full year expectations Ø Increasing pipeline visibility on opportunities from enterprise and mid-market end-customers Ø Several milestone end-customer wins secured representing industry firsts Ø Clear path to monthly run rate break-even and operational positive cash flow during 2015

Just to add that running a vendors technology as your own is fine but you need quick adoption to build critical mass and have to factor in upgrade costs when the vendor releases a new version.

Yes they did but not going to move the share price with the results so close. You also have to consider they have had IL2 for some time and only picked up a single order of note. G Cloud is well publicised as struggling for take off. Their Lync platform will be out of date next month when the next version is launched as Skype for Business. You will also be able to get voice break out capability direct from MS. Are Out going to raise more cash to change the environment to a Skype for Business platform? Of course not. They were one of the only companies selling Lync as a telephony platform but now the vendor is coming to the market. Would you spend any money building a Skype platform for home users? They had the right idea with Lync and were ahead of the curve so timing was right. The problem is the market didn't adopt and now that time has passed and the product has moved on with the vendor offering a better proposition.

Looking forward to seeing the results on the 30th. Anyone want to make any predictions on ARR and exit rate MRR? Would be nice to see a Q1 trading update.