Toople (LON:TOOP), a provider of bespoke telecom services to UK SMEs, today announced its final audited results for the year ended 30 September 2019.
Highlights:
· Revenue, showing significant growth year on year increasing by over 80% to £2,452,153
o Broadband revenue grew by over 220% to £1,331,699
o Hosted revenue grew by 80% to £114,892
o Mobile revenue grew by over 200% to £166,517
o Growth achieved despite sacrificing over £600,000 of revenue due to termination of onerous partnership agreements signed prior to IPO
· Gross profit increased by 165.5% to £478,704 (FY18: £180,457)
o Overall gross margin improved by 6.2 percentage points to 19.5%
· Increase in marketing and sales costs as business drives revenue for future returns
o New Head of Digital and Commercial Marketing appointed to focus on driving growth, innovation and sales
o Growth in direct customer orders driving growth, validating management decision to increase marketing spend
· Strong monthly growth in new customer orders and new customer wins continued throughout year
· Year on year growth in customer orders up over 100% for year to date
· New sales centre opened in Durban, South Africa performing well
o Significantly extended operating hours into the evening
o Helps maximise customer enquiries
o Cost attractive when compared to on-shore UK
o Reducing cost of customer acquisition
o Leads to reduction of sales cost of circa 50% per order
· Customer acquisition costs decreasing and customers increasing the amount of services taken
· Private placement successfully completed raising £662,231
· Debt of circa £600,000 repaid in full for a payment of only £150,000
· Acquisition strategy implemented
Commenting on current trading and outlook Mr Horsman added:
“We will today announce a transformational acquisition for the Company. This coupled with the strong operational performance of the business gives the Board significant confidence in the future cash generative capabilities of the enlarged Group.”
Andy Hollingworth, CEO at Toople commented:
“The Toople proposition is about offering our customers choice. We provide them with the best solution for their individual needs. The investments we have made this year have driven top line growth with future returns in mind. We continue to demonstrate to our customers that we are agnostic about carrier choice and focussed on providing them with the best service at the best price; with transparency and certainty of costs over the term of their contract.”
