CloudCoCo almost triples revenue in H1 results
MSP’s IDE Group Connect business is now breaking even as firm integrates four recently acquired businesses
CloudCoCo has almost tripled its revenues for the first six months of its financial year as its CEO claims the business is "a very different proposition to a year ago".
The MSP produced revenues of £11.6m for the six months until 31 Match 2022, up 183 per cent year on year. Some 70 per cent of that came from recurring contracts.
Gross profit more than doubled - by 119 per cent - year on year to £3.5m.
Trading group EBITDA, which excludes transactional costs related to the IDE Group Connect business it acquired last year, was £426,000. Factoring in the £124,000 in costs related to the Connect business puts its profits at £302,000, or 17 per cent lower than the same period last year.
CloudCoCo claims that IDE Connect is now performing at a monthly breakeven as of March 2022 after the firm implemented "corrective measures" on the business. When CloudCoCo acquired the firm in October 2021 it was producing annual losses of £800,000.
The MSP puts its "record" sales performance down to delivering a total contract value of £9.7m during the six months, thanks to its enhanced service propositions, better inbound marketing leads and wider sales and technical delivery capabilities.
The business won several multi-year contracts with customers
It claims that to have successfully integrated four recently acquired businesses, adding datacentre locations, private managed network services and e-commerce capabilities to the business.
Aside from IDE Connect, CloudCoCo also acquired reseller Systems Assurance last year as well as e-commerce platform More Computers.
More Computers has now been rebranded to MoreCoCo.
CEO Mark Halpin previously told CRN that the CloudCoCo is aiming to reach £50m in revenue over the next two years, up from £8.1m for its last fiscal year ending 31 September 2021.
"To have made this level of strategic and commercial progress in such a short space of time, including most notably the successful correction of the acquired Connect business to monthly breakeven ahead of schedule, is a significant achievement and testament to the quality and teamwork of our people.
"We are now a very different proposition to a year ago, with an expanded customer base; increased capability; significantly larger sales, support and technical teams; a focus on cross-selling; and several forward-thinking strategic initiatives that are already delivering. With the marked headway that has been made, we expect to see additional growth in trading performance in the second half as our pipeline of larger multi-year deals is continuing to grow."