30th Mar 2015 07:59
LONDON (Alliance News) - Cloud e-commerce company CloudBuy PLC saw its shares fall early Monday after it said its pretax loss widened significantly in 2014 on the back of investments made in its Asia Pacific expansion and due to lower revenue hit by sluggishness in its key markets.
CloudBuy said its pretax loss for the year was GBP4.6 million, significantly wider than the GBP936,417 loss it posted a year earlier.
The loss was driven by a combination of lower revenue, down to GBP2.1 million from GBP3 million, and by higher administrative expenses related to its expansion and subsequent headcount expansion in Asia Pacific. Revenue fell due to the reliance of the company on the UK public sector market and on large-scale procurement opportunities in Australia, both of which proved slow.
"2014 saw significant investment in both our technology and international expansion and we expect these to deliver a step change in our 2015 results as our signed contracts go live and start generating revenues. Entering 2014 our pipeline was, to a large extent, reliant on UK public sector and large procurement opportunities in Australia, which have proved to move slowly," said CloudBuy Executive Chairman Ronald Duncan.
"We have focused on the delivery of our international expansion at the expense of short term UK and professional services revenues. In 2014, we have not recognised any of the investment in either our products or our partnerships. We expect GBP1 million of partnership investments to be recognised in 2015 as the revenues come on stream," Duncan added.
CloudBuy shares were down 11% to 21.00 pence on Monday morning, one of the worst performers in the AIM All-Share index.
By Sam Unsted; [email protected]; @SamUAtAlliance
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