24th Sep 2014 08:23
LONDON (Alliance News) - Outsourcery PLC Wednesday blamed the slow ramp up in sales activities from its strategic partnership base for slower revenue progress than expected, although it did see revenues rise in the half-year to the end of June, helping the company to post a narrowed pretax loss.
The cloud service provider said it was on track to achieve its full-year expectations.
Although the company lamented the impact of the slow ramp up in its monthly recurring revenue, it said its outlook for revenue growth has improved on a pipeline of larger and mid-market customers, and that combined with cost cutting efforts, this should lead to it becoming earnings positive on a monthly basis by the end of 2015.
The company posted a pretax loss of GBP3.8 million, narrowed from a loss of GBP4.7 million a year before, as revenue rose to GBP3.4 million from GBP2.1 million, although this was somewhat offset by higher cost of sales.
Outsourcery said it had "not made as much revenue progress in the first half as initially anticipated," as a result of the slower ramp up in sales activities. Whilst it saw steady growth from small and medium enterprise partners, it expects most of its rapid growth to be driven by larger customers in the medium term.
During the first-half the company secured orders with two channel partners; the first to replace the customers legacy telephony service with a cloud-based communications system, and the second for a trial mandate.
The company secured an enterprise deal in July which it expects to generate monthly recurring revenue of GBP70,000 once fully deployed.
"Outsourcery is gaining a reputation in the marketplace for being the go-to problem solver for companies keen to make the cloud move, but unsure of how best to do it," non-Executive Chairman Ken Olisa said in a statement. "I look forward to the second half as we push ahead with building on that hard earned reputation and proving our capabilities and model."
Shares in Outsourcery were trading down 7.7% at 15.00 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
OUT.L