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Toople PLC (TOOP)

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Monday 13 September, 2021

Toople PLC

Update on Trading and Contract Wins

RNS Number : 4640L
Toople PLC
13 September 2021
 

For release: 07.00, 13 September 2021

 

Toople PLC

("Toople" or the "Company" or the "Group")

Update on Trading and Contract Wins

 

Toople PLC (LSE: TOOP), a provider of bespoke telecom services to UK SMEs, is pleased to provide the following update.

 

Update on Trading

The Company has experienced strong order numbers from existing and new customers over the summer period.  These are substantially ahead of previous summer trading periods.  This has been driven by two principal factors: the staycation phenomenon, meaning that fewer customers have travelled abroad; and an increase in contact rates between the Company and existing and new customers.  Contact rates and conversions have also been helped by an investment in marketing initiatives.

 

As new working practices are normalised, employers are increasingly providing their workforce with flexible working platforms, which in many cases will result in a duplication of telecom services in various spaces.  This is expected to increase demand for the Group's services.  For instance, the increasing popularity of hot desk and hub environments is a positive trend, which will increase future demand of cloud based propositions which support flexible mobile working.

 

New Contract Wins

The Company continues to grow its revenue base with a number of contract wins and contract extensions.  As much of the nation returns to work this month, the Company is today delighted to announce significant recent major contracts signed with three new customers in the financial services sector, as well as the extension of its services to two existing customers.

 

Two of the contract wins are with separate UK based credit unions.  The first operates from two different sites in the UK with a cloud voice telephony contract for an initial period of 60 months.  The new customer had an antiquated system in place, which was no longer fit for purpose, and Toople has provided a new system that supports fibre connectivity, and by implication flexible working patterns.  Similarly, the second customer has signed an initial cloud voice telephony contract for 60 months.  Toople increased the customer's number of seats as its employees returned to the office with the new solution supporting future flexible working.

 

The third new customer is a respected firm of solicitors based in East Anglia.  The cloud voice telephony contract is for a 60 month period.  Toople was able to upgrade the customer's incumbent infrastructure which comprised of old analogue ISDN circuits.  The new customer is now communicating via completely transformed fibre and cloud supported services in a more secure environment. 

 

Over the past three years Toople has been delivering data connectivity and cloud solutions to a large bakery brand in London.  Higher demand for this brand has been driven by the pandemic and an increase in on-line deliveries and orders from stores supported by Toople's infrastructure.  The bakery has pursued a rapid store expansion programme over the summer months, and Toople now has over 70 locations (store and distribution centres) linked to superfast data connectivity, 4G back up facilities, and cloud voice solutions.

 

Similarly, Toople has also recently provided a rapid expansion of cloud voice capabilities to a national building merchant, where consumer demand has increased sharply as it encouraged staff to return to the office.  It has extended its 36 month contract with Toople, which now supports over 200 cloud telephony solutions.

 

Andy Hollingworth, CEO commented:

"Summer is traditionally a quieter period, as existing and potential customers put their plans on hold until the big return to work in September.  However, this summer we saw robust orders from new and existing customers, including those reported above.  These sales levels are not only due to extraneous factors such as more people staying at home and changes in working environments, but it is also due to our targeted sales and marketing initiatives.

"We anticipate continued momentum as many in the UK return to their places of work following many months of lockdowns, shielding, isolation, and voluntary working from home arrangements, as evidenced by very recent contract wins and extensions.  Hybrid working and the need to remain connected are all encouraging trends for our business.

"We are approaching our year end with robust order volumes and a substantially improved bad debt position following the implementation of new procedures last year. There continues to be an attractive market in consolidation opportunities within our sector.  This gives us cause for continued optimism for the Group's prospects."

This announcement contains information which, prior to its disclosure, was inside information as stipulated under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended).

-Ends-

For further information :

 

Toople PLC

Andy Hollingworth, Chief Executive Officer

Paul White, Chief Financial Officer

Tel: 0800 0499 499

Novum Securities Limited

David Coffman

Colin Rowbury

Tel: 020 7399 9400

Belvedere Communications

John West / Llew Angus

 

Tel: 020 3687 2754

About Toople PLC

Toople PLC is incorporated in the UK and listed on the main market of the London Stock Exchange.  The business currently trades under four main brands: toople.com ; dmsluk.co.uk ; broadbandandphones.co.uk ; checkthatcompany.co.uk .

Toople.com  provides bespoke telecoms services for its fast growing target market of UK SMEs with between one and 500 employees.  Services offered by the Group include business broadband, fibre, EFM and Ethernet data services, business mobile phones, cloud PBX and SIP Trunking and Traditional Services (calls and lines) all of which are delivered and managed via the Group's proprietary software platform.  The Group's wholly owned subsidiary   DMS Holding (DMSL) provides unified communication services in the UK ranging from a single phone line to a multi-site unified comms VoIP platform, delivered via a network of telecoms and IT carriers and content providers across the UK including BT Business, BT Global Services, Gamma, EE, Vonage, TalkTalk Business and O2.  DMSL acts as a BT Premier re-seller for broadband connectivity, mobile and fixed voice and cloud services and is responsible for over 250,000 BT customers and over 400,000 Revenue Generating Units.

The Company also owns a telecoms price comparison website and a service offering company credit reference checking and reports.  These complement the Group's IT and telecoms services.

All the Group brands seek to differentiate themselves by offering IT, telecoms and broadband solutions, with robust and reliable packages, that enhance a customers' business and are based on trust and transparency, with no hidden fees within pricing policies.  This provides customers with a clear understanding of cost and fixed prices for the duration of their contracts.

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