CloudBuy's shares fall as FY revenue dips, pre-tax loss narrows

CloudBuy's shares fell almost 15% after after it reported a narrower full-year pre-tax loss with a minor revenue dip in what was a difficult year for the company.

"The company has learned from the lack of revenue success and taken clear actions to simplify the business," said executive chairman Ronald Duncan.

CloudBuy was now focusing its efforts on fewer but more tangible prospects for revenue including, in particular, PHBChoices marketplace through its customer NHS Shared Business Services.

Pre-tax loss for the 12 months to 31 December 2016 was £4.3m, from a loss of £6.1m. Revenue came in at £1.71m, from 1.75m.

Duncan said prospects that did not meet the company's strategy had not been pursued and it had already stopped some non-performing contracts and continued to evaluate the future direction of those existing contracts which have not produced revenue to determine if we should continue to invest resource.

"Our focussed approach to pipeline development and execution has enabled significant cost reduction in 2016 and Q1 2017," the executive chair added.

"This has given a stronger base as the business focuses on near and medium term revenue growth with a significant concentration on PHBChoices as our major opportunity."

At 14:40 GMT, shares in AIM-quoted CloudBuy were down 14.29% to 2.25p each.