14th Aug 2018 12:17
LONDON (Alliance News) - LoopUp Group PLC on Tuesday lifted its annual savings expectations and said it intends to report an increase in revenue for the first half of 2018, helped by its recent acquisition of MeetingZone.
The remote meeting company said it expects revenue for the six months to the end of June at GBP12.0 million, up 39% from GBP8.7 million reported a year earlier. On a constant currency basis, revenue rose 22%.
The result includes June trading from video call services firm MeetingZone, which LoopUp bought at the beginning of June for GBP61.4 million. At the time, LoopUp guided that the acquisition would be leveraged with cost savings of GBP500,000 in 2018 and at least GBP2.8 million in 2019.
On Tuesday, LoopUp said it now expects to deliver cost savings greater than previously stated and on a quicker timescale. The company aims to generate cost savings in the current year of GBP1.3 million and GBP3.2 million in 2019.
The one-off exceptional cost associated with implementing the cost-savings programme remains at GBP1 million, in line with earlier guidance.
In addition, LoopUp said it continues to see strong demand for its product from mid-to-large enterprises and professional services firms.
"This has been a transformational period for the group," said Co-Chief Executives Steve Flavell and Michael Hughes. "The reorganisation of the combined group has progressed ahead of schedule."
Flavell and Hughes continued: "Looking ahead, we continue to see excellent demand for the LoopUp product, and we remain confident in our ability to deliver strong future growth and meet market expectations."
The stock was trading 4.8% higher on Tuesday at 429.50 pence per share.
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