Period Highlights
•Revenue growth in the core business division of Cloud Telephony up by 161% to £1.846m (H1 2012: £0.708m) resulting in the core business becoming profitable
•Total Revenue up by 249% to £2.476m (H1 2012: £0.708m)
•c.96% of Total Revenues are recurring
•Gross Profits up by 124% to £1.026m (H1 2012: £0.457m)
•Gross Margins up to 41.5% from 33.3%
•Overall Loss for the period £119,000 (H1 2012: £337,000)
•Net Cash balance £1.026m (H1 2012: £0.1m)
David Breith, CEO of Coms, said “My first six months in this business have been a real challenge, but rewarding, and this has been a classic business turnaround. I have had to make tough decisions and rely upon key people. I am, however, pleased and proud to report on our tremendous progress to date and I am really looking forward to more of the same during H2.”
In his statement Breith said "Upon my appointment in early January 2013, I established a discipline and ethos, which was orientated towards making the Company achieve break-even within the first month. This necessitated making tough decisions in terms of organisation and staff in order that the business was ‘fit for purpose’.
As a result a new customer focused strategy was implemented and we immediately set about broadening the “Coms offering” as emphasised by the significant contract wins made during the period and our active and aggressive M&A strategy. Most significantly, the Company signed a contract to sell broadband and lines to MITIE Property Services Limited worth approximately £15m over two years of recurring revenue. The deal represents the largest contract win to date. In addition and as announced throughout the period we have acquired a number of bolt-on businesses, which have not only allowed us to significantly broaden our business offering, but also to refresh our technology base and IT systems that underpin our overall infrastructure. Overall, I am pleased to announce that this strategy was implemented effectively, which positions us well to deliver sustained future growth.
The financial results achieved for the first half-year demonstrate that the new strategy is working in that our revenue has grown (+249%), our gross margins have been significantly increased to 41.5% and that the overall cost base remains under tight control.
The revenue base is growing month-on-month and on the basis of our last billing month our annualised turnover would be c.£10m of which c.96% is recurring. Further strategic growth activity is planned including M&A, which remains a key plank of our strategy to accelerate the growth of this business."
Consolidated Statement of Comprehensive Income
For the Six months ended 31 July 2013