Cloudcall trading in line with market expectations

Cloudcall reported that trading was in line with market expectations over the latest six-month period, amid strong demand for its wares and record numbers of new users, bringing the company closer to financial break-even.

The computer telephony integration specialist said it saw strong demand for its products and services from new and exiting customers during the six months ended 30 June, the company said in an update.

Revenues were expected to be £3.2m, an increase of 40% from the first half of 2016 alongside recurring revenue up by 61% compared to the same period and up by over 24% versus the second half of 2016.

The AIM-listed company also reported a 25% increase in its total number of users in comparison to the same period of 2016 to reach 20,200 - setting a fresh record.

Citing a strong uptake for software from Bullhorn, a key CRM partner, and its focus on large client acquisition, the company said it had strong "visibility" on its third quarter revenues and expressed confidence in the outlook for 2017.

Company chief Simon Cleaver also highlighted "significant" demand for the firm's solutions out of the UK and the US, with new orders beginning to convert into revenues.

During the period, Cloudcall also secured a new and larger credit facility from its lender, Barclays, and on better terms. Combined with its cash in the back the company now had £2.8m in available cash.

"We are well placed to deliver substantial operational and financial progress in the current financial year. The pathway to EBITDA breakeven remains clearly within our sights."

Shares in Cloudcall finished the session 15.61% higher at 118.50p.