CloudCoCo Group PLC narrowed its pretax loss on Monday in what the company’s chief executive called a ‘landmark’ year for the company.

In spite of this, shares in Cloudcoco were down 12% at 1.50 pence on Monday afternoon in London.

The Leeds, England-based IT services management company reported a narrowed pretax loss of £2.0 million in the year ended September 30, narrowed from £3.0 million the prior year.

Revenue for the year rose 1.7% to £8.1 million from £8.0 million. Cloudcoco explained that its annual revenue had been impacted by Covid019 and a reduction in the requirement for in-office managed IT solutions during lockdown and a customer reluctance to sign longer term IT service contracts as a result.

The company noted record contract value sales in the first quarter of financial 2022, including a significant logo contract worth £3 million in revenue over three years. Securing a greater number of multi-year contracts was a key focus of the year, Cloudcoco explained.

Looking forward, the company said it expects the healthy trading seen in the final quarter of its 2021 year to continue to and beyond its first quarter as restrictions ease, face-to-face meetings become more frequent and organisations begin to increase their IT spend in the face of a more stable and certain external environment.

However, the loss-making nature of Connect - its cloud support business - at acquisition is expected to impact group’s profitability for the first half of its 2022 financial year.

Chief Executive Mark Halpin said: ‘With an enlarged group serving circa 1,000 customers, we now have the ability and impetus to provide a broader range of services to a broader range of customers. We have made an exceptional start to the new financial year - our best ever quarter by sales - and have made excellent progress in integrating the acquisitions, with the actions taken to get Connect from loss-making to anticipated profitability later in FY22 a particularly noteworthy achievement.

‘FY21 was a landmark year for the Group and we are now a very different proposition in terms of scale and opportunity, which will be reflected in our FY22 financials.’

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