LoopUp Group - a global software-as-a-service provider of remote meetings - reports revenues of £5,998,000 for the six months to the end of June, 38% up on last time.
LoopUp revenue has now grown quarter-on-quarter for the last 18 consecutive quarters (seasonally adjusted).
The other £0.4 million of revenue in the period was from a non-strategic licensing contract with BT (since 2008), which is now set to discontinue in November 2016, five months later than originally anticipated; therefore, this other revenue for FY2016 will exceed expectations set at IPO.
The Group maintained strong gross margins in the period at 75.3% (H1 2015: 74.9%). EBITDA grew by 150% to £1.3 million (H1 2015: £0.5 million), and the Group was profitable at an operating level. Operating cash losses after development expenses were £0.4 million (H1 2015: £0.7 million loss). The successful admission to AIM in August 2016 marked a major and exciting milestone for the Group. The listing and £8.5 million placing of new equity provide an important catalyst for our continued growth and considerably strengthen the Group's balance sheet, leaving the Group with approximately £2.7 million of net cash immediately after the IPO.
Co-chief executive Steve Flavell said: "We are very pleased to report strong performance in our first set of interim results as a public company. The 38% growth in LoopUp Revenue has exceeded FY2014 and FY2015 growth rates, gross margins have improved, the business was profitable at an operating level, and all key underlying business metrics have remained positive.
"Our successful IPO on the AIM market of the London Stock Exchange in August was a major milestone for the Group. It has significantly strengthened our balance sheet and enables us to pursue our growth strategies to expand our proven distribution model, introduce inbound digital marketing, and continue to innovate our product that we believe offers a best-in-class remote meeting experience for business professionals.
"The second half has started encouragingly with some major new customer wins that are ready to roll out. While second half profitability will be moderated by planned investments in growth, we remain confident in meeting full year revenue and profit expectations as well as our ability to deliver future growth."