29th Sep 2015 08:42
LONDON (Alliance News) - Communications outsourcing company Outsourcery PLC on Tuesday said its pretax loss narrowed in the first half thanks to increased revenue, and said it will raise GBP1.0 million via a subscription with a strategic investor.
Outsourcery said its pretax loss was GBP3.3 million in the half to the end of June, compared to a GBP3.8 million loss a year earlier, as revenue rose to GBP4.1 million from GBP3.4 million.
The company said its recurring revenue is increasing and said it has made progress on securing a robust market position in the cloud services segment. Its gross margin improved in the half, up to 49% from 43%, while the company has stepped up its development of a direct sales and marketing team, which will give it greater control of its pipeline and potential order opportunities.
"It is pleasing to see revenue growing and losses narrowing. This has been achieved by a renewed focus of our go to market activities and a programme of cost reductions," said Chairman Ken Olisa.
In a separate statement, the company said it has agreed a GBP1.0 million subscription fundraising with Lawrence Jones, an individual investor, under which he will buy 5.6 million shares in the company for 18.0 pence per share. The new shares equal 10.52% of Outsourcery's existing total.
Jones is the founder and chief executive of Manchester-based UKFast, an internet hosting provider.
Shares in Outsourcery were down 7.3% to 14.84 pence on Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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