LoopUp Group PLC’s shares plunged on Tuesday after the company said it expects a fall in revenue and earnings for 2021 due to lower demand and anticipates annual revenue for 2022 to decline further.

Shares were down 25% at 9.80 pence each on Tuesday morning in London.

The London-based software provider for remote meetings said it expects revenue of £19.5 million for 2021.

This reflects a 61% fall from revenue of £50.2 million the year before.

Furthermore, the company expects revenue of £15 million to £16 million for 2022 due to longer lag from bookings to revenue in its Cloud Telephony unit, coupled with continued expected ‘pressure’ on its Remote Meetings business.

This would represent a 22% to 30% decrease from the projected revenue of £19.5 million for 2021.

LoopUp anticipates earnings before interest, tax, depreciation, and amortization to come in at £900,000, a sharp drop from Ebitda of £15.3 million the year before.

The company still stated that these results are broadly in line with expectations.

LoopUp attributed the drop in 2021 results compared to 2020 to ‘a major spike in business demand at the onset of the Covid-19 pandemic’ in 2020.

LoopUp ended the year 2021 with gross cash of £5.5 million, a 55% decrease from £12.1 million the year prior.

The software provider’s net debt, on the other hand, tripled to £2.5 million from £700,000.

LoopUp continued that it won 31 new direct contracts throughout 2021 with a baseline minimum total contract value of £2.4 million for initially committed and contracted rollout phases.

The amount could increase to roughly £8.6 million should geographic rollouts proceed as expected, it said.

The company added that to date all customer deployments have been ‘successful,’ and that all rollouts are ‘progressing positively.’

It stated that its integration of Madrid-based hybrid collaboration software-as-a-service technology business SyncRTC is also ‘progressing well.’

LoopUp said it is currently managing its operations carefully to preserve cash and maintain Ebitda profitability in this year, at a higher expected margin than in 2021.

Going forward, its Cloud Telephony solution will be at the centre of its growth strategy, the company said.

LoopUp expects to record a strong performance by the unit for 2022 and anticipates new contract wins to improve to at least an additional 50.

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