Cloud CoCo Group has released its results for the 2024 financial year in what was a transformative period for the company and following the successful sale of a significant portion of assets, it goes forward with a renewed focus on long-term growth.
The company sold the IT managed services businesses, which completed post year end, and by divesting these businesses for a cash consideration of approximately £7.75 million, it repaid outstanding debts, including the MXC Loan Notes.
This decisive action left the Group with an improved balance sheet with working capital to invest in its remaining operations, and it also paved the way for a more focused and scalable growth strategy centred on the e-commerce platform and IT product reseller business.
Following the sale, CloudCoCo Group has become leaner, more agile, and singularly focused on scaling and trading through its e-commerce platform (morecoco.co.uk) and IT procurement businesses: its e-commerce platform, generating approximately £7 million in annual revenue, provides growth opportunities through direct sales, brand development, and deeper partnerships with vendors.
Trading performance in the year for the Group saw positive revenue growth, increasing by 6%, from £26.0m in 2023 to £27.5m in 2024 as it continued to focus on driving sales activity across the original four core pillars of connectivity, multi-cloud, collaboration and cyber-security.
The trading group EBITDA was £1.6m, compared to £1.9m from the previous year.
Elsewhere, its continuing operations, comprising the e-commerce business through Systems Assurance and MoreCoCo, delivered solid performance during the year, and this segment focuses on providing IT hardware, components, and related products to both business and consumer customers through its online platform.
Managed IT Services, which comprises recurring services and ongoing IT support using the data centre locations, core network or technical skills at the company's disposal during the year represented the larger part of group revenues: 61% (2023: 69%) of revenues during the year, adding value to customers providing specialist IT skills on-demand.
However, this fell by £1.3 million to £16.7 million in the year, having produced £18.0 million of revenue in FY23.
Of the total Revenues, £15.7 million related to recurring contracts in 2024, down from £16.7 million in 2023. Overall recurring contracts represented 57% of the 2024 Revenue figures down from 64% in the prior year.
Simon Duckworth, Chairman at Cloud CoCo (pictured) said: “Under the leadership of Peter Nailer, our trading business is showing promising growth, and we are actively exploring new areas for expansion, particularly in consultancy and investment, to broaden our revenue base and accelerate the path to sustainable profitability.
“Despite the broader economic challenges, we are confident in our ability to navigate the evolving market dynamics and achieve our strategic objectives.”