8th Feb 2019 08:56
LONDON (Alliance News) - Cloudbuy PLC on Friday said it intends to focus on existing clients after its revenue fell by a quarter it 2018 on non-repeat of old legacy contracts.
The stock was trading 14% lower on Friday at 3.00 pence a share. They fell to a low of 2.70p before rebounding partially.
The provider of cloud-based e-commerce marketplaces said it expects to report a 25% fall in revenue in the year to the end of December 2018, but its operating loss is anticipated to narrow on cost savings.
"The reduction in revenue in 2018 is a disappointment and results from lower revenue from contracts won in 2016 and a number of legacy contracts ending and not being replaced by new opportunities," explained Executive Chair & Chief Information Officer Ronald Duncan.
Cloudbuy said it continued to work with NHS shared business services during the year to onboard individual clinical commissioning groups onto PHBChoices, a new online marketplace for personal health budget.
Looking ahead, Cloudbuy said the move to profit and cash flow break-even remains its key priority.
The company is currently engaged in two opportunities which together would provide adequate financing to enable it to achieve cash flow break even. Should these opportunities not materialise Cloudbuy said it will seek new funding, including entering into discussions to draw down a portion of the remaining GBP1.7 million of the debt facility.
"The business strategy remains to focus on revenue from existing customers in the UK, Canada, Singapore and Australia with significant growth expected from PHBChoices in 2019," added Duncan.
Cloudbuy said it intends to publish its annual results on March 20.
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