CloudCoCo leaves door open to further M&A as revenues treble to £24m

But organic growth will be the focus for IT managed services provider in fiscal 2023

Managed IT services and comms provider CloudCoCo is switching its focus to organic growth after four acquisitions helped it treble in size in its fiscal 2022.

The AIM-listed outfit expects revenues to hit £24m in its year to 30 September 2022, compared with £8m a year earlier, as its integration of four firms acquired towards the end of 2021 turbo-charged its top line.

Trading EBITDA is in line to rise from £745,000 to £1m, it added in a trading update this morning, with the loss-making Connect business it acquired from IDE Group last October reaching monthly breakeven in March.

Organic growth will be its "primary focus" in its new financial year, although the AIM-listed outfit has left the door open to further "selective" acquisitions.

"The period under review has been another successful one, characterised by a focus on integrating and optimising the four acquisitions made in late 2021, while taking steps to ensure the Group moves forward as a single, cohesive unit," CEO Mark Halpin (pictured above) said.

"Our organic growth prospects are strong, with growing demand, all parts of the business now fully embedded and operating profitably, and a programme of investment underway to further bolster our sales efforts. Alongside this, in pursuit of the next stage in our ‘Get Bigger' strategy, we are actively exploring complementary acquisitions with the potential to enhance our one stop shop capabilities and accelerate value creation for shareholders."

CloudCoCo said hardware sales were "ahead of expectations" in its fiscal 2022, adding that it made "good progress" in signing new business on multi-year terms.

Opening a new Leeds HQ and offices in Warrington and Bournemouth were among its other annual highlights.

A new programme of investment, known internally as ‘Project IGNITE', was launched in the second half, with CloudCoCo "confident of delivering continued strong sales growth and improved profitability in FY23, weighted towards the second half".