Year End Trading Update
Summary by AI BETAClose X
The information contained within this announcement is deemed by CloudCoCo to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.
10 March 2026
CloudCoCo Group plc
("CloudCoCo", the "Company" or the "Group")
Trading Update
CloudCoCo (AIM: CLCO), the Sheffield-based e-commerce and IT procurement group delivering tailored, next-day IT solutions through its Systems Assurance and MoreCoCo divisions, is pleased to provide an update on its trading for the year ended 30 September 2025 ("FY25").
The financial year ended 30 September 2025 marked a transformative period for the Group. Following the strategic disposal of its legacy managed services businesses, CloudCoCo Limited and CloudCoCo Connect Limited, in October 2024, the Group has successfully transitioned into a leaner, debt-free and asset-light organisation.
Current operations are focused on two core pillars:
· The MoreCoCo e-commerce platform; and
· Systems Assurance, the Group's specialist B2B IT procurement business.
Financial Performance
Trading during the year to 30 September 2025 was characterised by disciplined execution and improving operational momentum:
· Revenue: Continuing operations for the year to September 2025 are expected to generate revenues of approximately £8.0 million (FY24: £8.7 million). Despite vendor disruptions early in the year, quarterly revenues increased steadily from c.£1.4 million in Q1 to c.£2.4 million in Q4, representing an annualised run-rate approaching the Group's initial £10 million revenue target.
· Profitability: Trading EBITDA for continuing operations is expected to improve to approximately £80,000 (FY24: £63,000) for FY25. The Group is expected to report a net profit for FY25 of approximately £2.5 million, primarily reflecting the gain on disposal of subsidiaries.
· Margins: Gross margins in FY25 reached approximately 15% before marketplace and marketing fees supported by improved pricing discipline and increased automation.
· Cash Position: The Group ended FY25 with a cash balance of approximately £635,000 and, whilst loss-making after plc costs, remains free from long-term debt. The cash balance at 27 February 2026 was approximately £280,000.
Operational Progress
Significant operational progress has been made during the year:
· Automation and Scale: Over 50% of e-commerce orders are now processed without manual intervention. The product catalogue has grown to include more than 190,000 IT products, all available for next-day delivery.
· B2B Growth: Systems Assurance onboarded 11 new business customers, and the branded WebStore platform now supports approximately 60 business clients, creating repeatable, software-enabled revenue streams.
· Cost Discipline: PLC-level costs were reduced by 21% to approximately £353,000 per annum. In addition, the Directors voluntarily reduced their combined salaries by £100,000 per annum from April 2025 to accelerate the path to sustainable cash generation.
Outlook
CloudCoCo entered FY26 with a clear strategic focus. The Board's objective is to scale annual revenues towards its initial £10 million target at a sustainable margin, after which it expects to generate consistent positive monthly cash flow at PLC level.
Growth will be driven by marketplace diversification, margin-led digital marketing, expansion of direct website sales, and continued investment in automation and higher-margin services.
The Directors are targeting a growth strategy to scale revenues beyond the Group's initial
£10 million run-rate, with an ambition to exceed £15 million within three years, driven by expanded B2B engagement, improved direct customer acquisition and higher-value revenue streams.
A margin and scalability enhancement programme is underway, details of which are expected to be announced shortly, focused on increasing direct and alternative e-commerce marketplace sales and investing in automation and AI-enabled tools to support increased transaction volumes with minimal incremental headcount.
The Company expects to announce its annual results for the year ended 30 September 2025 by the end of March 2026.
Simon Duckworth, Non-Executive Chairman, commented:
"With FY25 revenues from the continuing operations expected to be approximately £8.0 million, exiting the year at an annualised run-rate approaching £10 million, we are encouraged by the progress made during the year.
The Directors are currently focused on delivering a structured pathway to scale the business beyond this level. The Board is evaluating a number of strategic initiatives designed to accelerate growth and enhance the Group's B2B capabilities."
Contacts:
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CloudCoCo Group plc Simon Duckworth (Chairman)
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Tel: +44 (0) 114 292 2930
|
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Allenby Capital Limited - (Nominated Adviser & Broker) Jeremy Porter / Vivek Bhardwaj - Corporate Finance |
Tel: +44 (0)20 3328 5656
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About CloudCoCo
CloudCoCo is a streamlined, growth-focused technology group specialising in e-commerce and IT procurement business based in Sheffield. Combining expert IT procurement solutions through Systems Assurance with the scalable e-commerce capabilities of MoreCoCo (www.morecoco.co.uk), helping organisations deliver enhanced efficiency, security, and agility. Backed by strong vendor partnerships and a team of industry specialists, we deliver tailored solutions and next-day access to hundreds of thousands of IT products.
www.cloudcoco.co.uk
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