cloudBuy Pretax Loss Narrows On Lower Costs, Share Based Payments

16th Mar 2018 15:33

LONDON (Alliance News) - Cloud based e-commerce company cloudbuy PLC on Friday posted a narrowed pretax loss narrowed due to lower administrative costs and share based payments.

The company's pretax loss in 2017 narrowed to GBP2.7 million from GBP4.3 million pretax loss in the year ago period. The narrowed loss was attributed to lower administrative expenses, which fell to GBP3.4 million from GBP4.8 million. Share based payments also reduced sharply to GBP164,352 from GBP694,360 prior year.

Annual revenue for the year stood at GBP1.5 million, down 12% from GBP1.7 million prior year due to end of two contracts in the fourth quarter of 2016 and continuing reduction in Company Formations revenue.

The decrease in administrative expenses was attributed to the company's ongoing cost reduction initiative.

The company reported that the business has been simplified in 2016 and 2017, and currently there are sales and marketing costs in countries where sufficient revenue is generated "to show a profit for the country before the allocation of central overheads".

"We will continue to focus our resources on continuing to simplify the business which has already derived substantial reductions in operating costs. The main strategy for growth remains PHBChoices where we expect to see revenue in 2018 growing from the initial current level," Chief Executive Lyn Duncan said.

The company's cash reserves were GBP2.5 million on December 31, up from GBP1.0 million prior year.

Shares in cloudBuy were trading 2.1% higher at 4.90 pence in afternoon trade.

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