CloudCoCo Group PLC on Monday said it has a ‘clear strategic focus’ following the sale of its legacy business, as it reported weaker half-year revenue and profit.
The London-based provider of managed IT services and communications solutions said its pretax loss widened to £319,000 in the six months to March 31 from £303,000 a year earlier.
Revenue fell 22% to £3.4 million from £4.3 million, but with cost of sales down 22% to £3.2 million from £4.1 million.
CloudCoCo attributed the weaker top line to temporary commercial constraints with key vendor data feeds back in October and November, which it said stopped the company from providing the full range of products for sale on its platform.
Shares in CloudCoCo rose 3.9% to 0.27 pence on Monday afternoon in London.
Looking ahead, CloudCoCo said its priority is to ‘drive sustainable and consistent revenue growth.’
‘Following the sale of our legacy businesses in late 2024, CloudCoCo is now a leaner organisation, free from long-term debt and with a clear strategic focus. Our immediate priority is to scale the trading business rapidly but sustainably, building consistent revenue streams that support monthly cash generation,’ said Non-Executive Chair Simon Duckworth
During the period, the company sold its businesses CloudCoCo Ltd and CloudCoCo Connect Ltd for a total consideration of £7.9 million.
Duckworth continued: ‘We’ve laid strong operational foundations in this half-year and are confident that, with continued discipline and momentum, we can deliver long-term value for our shareholders’.
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