18 Jan 2017 07:00
18 January 2017
LOOPUP GROUP PLC
("LoopUp Group" or the "Group")
Trading Update
Group announces year-end trading ahead of expectations
LoopUp Group plc (LSE AIM: LOOP), the premium remote meetings company, is pleased to provide the following trading update for its financial year ended 31 December 2016.
Subject to audit, the Group has traded ahead of market expectations as follows:
£ million | FY2016 (unaudited) | FY2015 (audited) | Year-on-year growth | |
LoopUp Revenue1 | 12.8 | 9.2 | 39% | |
Total revenue | 13.6 | 10.1 | 34% | |
Gross profit | 10.3 | 7.5 | 37% | |
Gross profit margin (%) | 76% | 74% | ||
EBITDA2 | 2.1 | 1.0 | 101% |
1) LoopUp Revenue is revenue from the LoopUp product and associated value-added add-on capabilities, and so excludes discontinued BT technology licensing revenue.
2) Earnings Before Interest, Taxation, Depreciation and Amortisation.
Highlights
· LoopUp Revenue grew 39% in FY2016, an increase in growth rate from 36% in FY2015 and 38% in FY2014.
· The Group's net cash position as at 31 December 2016 was £2.2 million compared with £2.7 million immediately after its IPO in August.
· The Group enjoyed continued success in the legal and financial professional services sectors. Landmark customer wins included a global 'magic circle' law firm and a North American financial services firm.
· The Group maintained its track record of 'negative net churn' - i.e. net growth - in its established customer base of customers that are at least one year old.
· As indicated at IPO, investments were made to increase the number of new business acquisition 'Pods' (to 7.25 Pods by the year-end), recruit a new London-based marketing team, and continue to innovate its differentiated product. Group staff totalled 116 by the year-end, up from 96 at mid-year. This accelerated investment has been made while continuing to meet the Board's targets for profit growth.
· New business acquisition Pods improved further on the already strong return-on-investment efficiency metrics seen in 2015.
· The newly formed marketing team launched a new corporate website which included re-designed LoopUp branding and refreshed messaging and positioning.
· In November, the Group released a major new product version, which further enhanced its streamlined and intuitive user experience.
Going into 2017, the Group continues to see strong demand for the LoopUp product and is confident in its ability to deliver future growth.
Capital Markets Day
The Group will host a Capital Markets Day for analysts and institutional investors at its London headquarters at 2.30pm on Wednesday 25 January 2017 with presentations by the Group's executive management team. If you would like to attend, please contact Melissa.Hall@fticonsulting.com.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
For further information, please contact:
LoopUp Group PLC | via FTI |
Steve Flavell, Co-CEO | |
Panmure Gordon (UK) Limited | +44 (0) 207 886 2500 |
Dominic Morley / Alina Vaskina / William Wickham (Corporate Finance) | |
Erik Anderson / Amy Sarra (Corporate Broking) | |
FTI Consulting, LLP | +44 (0) 203 727 1000 |
Matt Dixon / Chris Lane / Roger Newby |
About LoopUp Group plc:
LoopUp (LSE AIM: LOOP) is a premium remote meetings solution. Streamlined and intuitive, LoopUp is built for the needs of business users and delivers the quality, security and reliability required in the enterprise. One-click screen sharing and integration with tools business people use every day, like Outlook, make it easy for LoopUp users to collaborate in real time. LoopUp's award-winning SaaS solution doesn't overwhelm users with features, and doesn't require training. Over 2,000 enterprises worldwide, including Travelex, Kia Motors America, Planet Hollywood, National Geographic, and Subaru trust LoopUp with their remote meetings. For more information, visit www.loopup.com.