11th Sep 2015 07:17
LONDON (Alliance News) - CloudBuy PLC Friday reported a wider pretax loss in the first half of 2015 and warned that it may miss market expectations for the full year, as its shares were suspended following the resignation of its nominated adviser and broker.
The cloud-based e-commerce marketplace provider said that its pretax loss in the six months ended June 30 widened to GBP3.2 million from GBP1.6 million in the first half of 2014, as revenue dropped to GBP0.9 million from GBP1.5 million, which it said was due to the transition from a flat fee to a transactional model.
However, it said that revenue increased 32% from the second half of 2014 as the new model demonstrated initial growth. Profit was also hit by an increase in administrative expenses resulting from investments in sales and technology, CloudBuy said.
CloudBuy added that it has a pipeline of "major opportunities" with a potential value of GBP51 million over three years, but warned that some of the "more advanced" marketplace opportunities have been delayed and will now only contribute a small amount of revenue in the current year, which means it may miss market expectations for the full year.
"Our quick and effective entry into North America, China and Saudi shows that we are able to execute projects globally and provides confidence in our pipeline. The company has a strong and professional team who are quickly acquiring and converting the growing numbers of commercial opportunities that will generate rapid and sustained long-term revenue growth," Chairman Ronald Duncan said in a statement.
Separately, CloudBuy said that its shares have been suspended as of Friday due to the resignation of the company's nominated adviser and broker.
"The company is in advanced discussions with an alternative nomad, and expects to appoint a new nomad in due course," CloudBuy said.
It added that if a new nomad is not appointed within one month, trading of its shares on AIM will be cancelled.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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