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LoopUp Group PLC on Thursday reported a contract win and said it expects
annual revenue to be slightly above forecasts.
Shares were up 38% at 9.30 pence each on Thursday afternoon in London.
The software provider for remote meetings said its new ‘material’ contract win is with American Teleconferencing Services Ltd and Audio Telecommunications Technology II LLC, together PGi Connect, to transfer all of PGi Connect's conferencing services customers over.
LoopUp said it expects the ‘clearly material and highly cash generative’ contract to generate about £10.0 million of revenue and about £5.0 million of net cash between October and September in 2023.
Chief Executive Officers Steve Flavell and Michael Hughes said: ‘In addition to the material expected cash generation, it will also bring telecommunications purchasing scale that will benefit our growing Cloud Telephony business.’
LoopUp said the Cloud Telephone market is forecast to grow to £29.0 billion by 2025.
Turning to its company update, LoopUp said it expects revenue of about £6.6 million, but an adjusted loss before interest, tax, depreciation and amortisation of about £1.5 million for the six months that ended on June 30.
It expects full-year revenue to be marginally above market expectations, at marginally lower profitability given some additional investment needed for the PGi deal, but revenue in the 2023 financial year should be ‘materially above market expectations at materially higher profitability’.
The company will announce its half-year results by the end of this month.
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