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Cloudbuy still hungry for cash as revenue falls

By Josh White

Date: Wednesday 20 Mar 2019

Cloudbuy still hungry for cash as revenue falls

(Sharecast News) - Cloud-based merchant service provider Cloudbuy reported a 26% fall in its full-year revenue on Wednesday, to £1.11m.
The AIM-traded firm said the reduction was due to a number of existing customers not renewing in 2017 and 2018.

It explained that project revenue continued to be earned from contracts won in 2016, albeit at a lower level than in 2017 as the projects were now live and operational.

Revenue from its company formations services reduced 15% in the year ended 31 December, the board said.

Cloudbuy said its operating loss, excluding share-based payments. was £1.65m, which was 25% narrower than in 2017 as a result of cost reductions which the board said had offset the reduction in revenue.

For 2019, the company said it would continue to focus on generating revenue from existing customers, with a particular focus on the 'PHBChoices UK Care Marketplace'.

Cash as at 31 December totalled £0.79m - a reduction of £1.67m in the year, with nil funding raised during the period.

"In the trading update issued on 8 February, we stated that the company is engaged in two opportunities which, if won, would enable the company to reach cash flow break even without further funding," the board said of its current funding position.

"One of these opportunities is still viewed as having a good likelihood of success, the other is now unlikely.

"As a consequence, the company has agreed to drawdown £0.5m from the existing facility with Roberto Sella, to be received in March, with a potential further drawdown of £0,25m if the current likely opportunity does not materialise."

The Cloudbuy board said it believed that should provide adequate financing to enable the firm to achieve cash flow break even.

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