LoopUp Swings To Profit Driven By Strong Growth In Revenue And Margins

6th Mar 2018 10:43

LONDON (Alliance News) - LoopUp Group PLC on Tuesday reported robust performance during 2017 as swung to pretax profit of GBP729,000 compared with GBP286,000 loss in 2016.

Conference call software firm revenue was GBP17.5 million, up 36% from GBP12.8 million in 2016, ahead of market expectations. On the constant currency basis, revenue grew 34%, ahead of the prior year's record of 31%.

The growth in LoopUp revenue, the company said, came despite the pound to dollar rate rise to USD1.32 per pound sterling from USD1.23 at the start of 2017, with 51% of its business dollar-denominated during the year.

LoopUp said gross margins rose to just under 77%, a 220 basis point improvement on 2016, as a result group's earnings before interest, tax, depreciation and amortisation for the year grew by 161% to GBP3.5 million.

LoopUp co-Chief Executive Officers Steve Flavell and Michael Hughes said: "We are very pleased to report continued strong business performance ahead of market expectations at all key P&L levels. Our track record of consistent revenue growth in excess of 30% has been maintained, gross margins have improved further and LoopUp EBITDA has grown by 161%."

The company declared no dividend.

"2018 has started encouragingly with some major recent customer wins set to roll out, and we remain confident in our ability to deliver continued strong growth," Flavell and Hughes added.

LoopUp shares were up 6.3% at 356.00 pence per share on Tuesday.

LoopUp raised GBP8.5 million through its initial public offering in August 2016 at 100 pener per share, giving it an initial market cap of GBP40.8 million.

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