12th Mar 2014 10:24
LONDON (Alliance News) - cloudBuy PLC Wednesday posted a widened pretax loss, despite seeing revenue rise, as costs jumped up primarily due to its launch in Asia Pacific.
The company, formerly called @UK, posted a pretax loss of GBP936,417, widened from a pretax loss of GBP849,502 in the previous year, as higher administrative expenses and share based payments offset a rise in revenue to GBP3.0 million from GBP2.2 million.
Administrative expenses rose to GBP3.3 million from GBP2.5 million in the previous year, due to the company's launch of its cloudBuy service in the Asia Pacific region with Visa Inc in October. Share based payments rose to GBP217,790 from GBP70,247 in 2012, as options and shares were granted to employees under the company's share incentive plan.
Revenue from web and eCommerce services rose 73% to GBP2.04 million from GBP1.18 million. As a result of this rise, gross margin increased to 85% from 79%.
cloudBuy said that its positive start to 2014 gave it confidence it can deliver on its objectives. It has won two contracts in the UK at the beginning of 2014.
The company said that its re-branding to cloudBuy had resulted in enquiries in the US and Canada, where it has been asked to bid for a number of contracts. Yesterday the firm announced its latest contract win, a cloudBuy private purchasing portal for electronic payments for Sarth Surfacrete. The deal is the company's first eProcurement agreement in Mumbai, India.
Shares in cloudBuy were trading down 4.2% at 51.00 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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