LoopUp earnings thunder ahead as it concentrates on core business

Remote meetings service provider LoopUp Group released its unaudited preliminary results for the year ended 31 December on Tuesday, with the board reporting “strong” trading for the period.

The AIM-traded firm said revenue from its LoopUp core service, which excludes its discontinued BT technology licensing business, was ahead 36% at £17.5m.

Its total revenue was up 29% at £17.5m.

Gross profit from LoopUp rose 40% to £13.4m, with the service’s gross profit margin rising 220 basis points to 76.7%.

EBITDA from Loopup surged 161% to £3.5m, with its operating profit swinging to £0.7m from an operating loss of £0.3m in the prior year.

The company’s total gross profit was 30% higher year-on-year at £13.4m, and its total operating profit was £0.7m, up from £0.4m.

Diluted earnings per share were 722% higher than the previous period, at 4.4p.

“We are very pleased to report continued strong business performance ahead of market expectations at all key P&L levels,” said LoopUp co-CEOs Steve Flavell and Michael Hughes in a statement.

“Our track record of consistent revenue growth in excess of 30% has been maintained, gross margins have improved further and LoopUp EBITDA has grown by 161%.”

Flavell and Hughes said the firm’s differentiated product and competitive positioning were not only winning clients and keeping clients, but also helping LoopUp to grow clients into key revenue contributors over time.

“When combined with our efficient distribution unit economics and size of market, it makes for very exciting times here at LoopUp.

“2018 has started encouragingly with some major recent customer wins set to roll out, and we remain confident in our ability to deliver continued strong growth.”