TIDMLOOP
RNS Number : 9246N
LoopUp Group PLC
07 June 2022
7 June 2022
LOOPUP GROUP PLC
("LoopUp Group" or the "Group")
Unaudited preliminary results for the year ended 31 December
2021
Strong Cloud Telephony and Hybridium traction in continued
strategic transition
LoopUp Group plc (AIM: LOOP), the cloud platform for premium
hybrid communications, announces its unaudited preliminary results
for the year ended 31 December 2021.
Financial Highlights:
-- Revenue of GBP19.5 million (FY2020: GBP50.2 million)
at a gross margin of 69% (FY2020: 71%)
-- Adjusted EBITDA(1) of GBP1.2 million (FY2020: GBP15.3
million) and adjusted operating loss(2) of GBP6.1 million
(FY2020: GBP9.0 million profit)
-- Financial performance versus FY2020 impacted by: (i)
the major Q2/Q3 2020 spike in Meetings business demand
at onset of the COVID-19 pandemic; and (ii) a shift
in the competitive market environment from Meetings
solutions to holistic Unified Communications (UC) platforms
-- Successful placing and retail offer for approximately
GBP8.85 million in September 2021
-- Gross cash of GBP5.5 million and net debt of GBP2.4
million at 31 December 2021 (31 December 2020: GBP12.1
million and GBP0.7 million respectively)
Operating Highlights:
-- Continued execution on strategic transition from traditional
base of remote meetings services into a broader cloud
platform for hybrid communications
-- 31 new enterprise contract wins during FY2021 (FY2020:
zero) and strong new business pipeline development
in Cloud Telephony, our primary forward-looking growth
line of business
-- Awarded Microsoft's 'Calling for Microsoft Teams Advanced
Specialization', the top status level in Microsoft
partner competency above and beyond gold level
-- Acquisition of SyncRTC Inc. in October 2021, a hybrid
auditorium technology company, at an enterprise value
of c.GBP3.3 million
-- SyncRTC rebranded to Hybridium (www.hybridium.com)
as the Group's second growth line of business
Post Period Highlights:
-- 16 additional new enterprise contract wins in Cloud
Telephony
-- In aggregate, the 47 Cloud Telephony contract wins
to date - 31 in FY2021 and 16 in FY2022 to date - represent
minimum Annual Recurring Revenue (ARR) of c.GBP0.8
million, expected ARR of c.GBP1.9 million, and potential
ARR of c.GBP4.4 million, generally on 3-year initial
term contracts
-- Cloud Telephony sales pipeline of new opportunities
has now exceeded c.GBP100 million of additional potential
ARR, of which 17% is at proposal stage or later in
the sales cycle
-- Closed a landmark Hybridium contract with Telefónica
for deployment at 'Universitas', its global innovation
and talent hub in Madrid
-- Successful renegotiation of senior debt arrangements
with Bank of Ireland in line with the Group's strategic
transition business plan
1. Earnings before interest, tax, depreciation and amortisation,
excluding share-based payments charges
2. Adjusted to exclude amortisation of acquired intangibles and share-based payment charges
Steve Flavell and Michael Hughes, co-CEOs of LoopUp Group,
commented:
"As we continue to manage our strategic transition, we are
pleased with the 31 new customer wins achieved during our first
full year of business in Cloud Telephony, traction that has further
increased in pace during the first half of 2022. The potential for
global provision of telephony services to the multinational
enterprise market is exciting, operating at a geographic coverage
layer above the telecommunications carriers. We believe we are well
positioned to build material shareholder value in this endeavour,
driven by our differentiated technology platform and the tremendous
hard work and innovation of our team, of whom we are very
proud.
It has also been a pleasure to start working with our new
colleagues at Hybridium following last year's acquisition, and we
believe their hybrid auditorium technology will also play a
material role in the Group's strategic transition and return to
growth in the years ahead."
Market abuse regulation:
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act
2018.
LoopUp Group plc via FTI
Steve Flavell, co-CEO
+44 (0) 20 7886
Panmure Gordon (UK) Limited 2500
Dominic Morley / Alina Vaskina (Corporate
Finance)
Erik Anderson (Corporate Broking)
+44 (0) 20 7397
Cenkos Securities Limited 8900
Giles Balleny / Dan Hodkinson (Corporate Finance)
Alex Pollen (Sales)
+44 (0) 20 3727
FTI Consulting, LLP 1000
Matt Dixon / Jamille Smith / Tom Blundell
About LoopUp Group plc
LoopUp (LSE AIM: LOOP) is a cloud platform for premium hybrid
communications. The Group's flagship Cloud Telephony solution for
Microsoft Teams enables multinational enterprises to consolidate
their global telecommunications into a single, consistently managed
cloud implementation rather than disparate implementations from
multiple carriers. The Group's hybrid auditorium and events
solution, Hybridium (www.hybridium.com), brings unrivaled
engagement and analytics to larger scale hybrid education, training
and events such as management onsites, departmental kick-offs,
capital markets days and thought leadership seminars.
The Group is listed on the AIM market of the London Stock
Exchange (LOOP) and is headquartered in London, with offices in the
US, Spain, Germany, Hong Kong, Barbados and Australia.
Chief Executive Officers' Business Review
Continued execution on our strategic transition
FY2021 has been a challenging year for the Group, as we have
continued executing on the strategic transition to grow our
forward-looking hybrid communications lines of business - Cloud
Telephony and Hybridium - while our Remote Meetings line of
business declines.
The post pandemic workplace has shone a spotlight on hybrid
communications tools that are equally secure and effective in the
office, at home and on the road.
The Group has two exciting solutions in hybrid
communications:
-- Cloud Telephony (LoopUp) - enabling next generation phone
calls to and from work phone numbers independently of
the user's physical location and in LoopUp's case enabling
multinational enterprises to buy telephony globally from
one service provider as opposed to multiple telecommunications
carriers; and
-- Hybrid Auditorium Technology (Hybridium) - enabling large
scale collaboration and events (20-150 people in room
and 20-150 people remote) for events such as company
town halls management onsites/offsites, team kick-offs,
capital markets days, product launches, corporate training
and external thought leadership events.
By contrast, the Group's Remote Meetings business has been
declining in the post pandemic environment as enterprises
progressively embrace more holistic Unified Communications (UC)
platforms, such as Microsoft Teams, which incorporate meetings
functionality.
Overall, FY2021 Group revenue was GBP19.5 million (FY2020:
GBP50.2 million) and Adjusted EBITDA was GBP1.2 million (FY2020:
GBP15.3 million), declines which were exaggerated by the material
Q2/Q3 2020 spike in Remote Meetings business at onset of the
COVID-19 pandemic, which peaked at over GBP7 million per month in
each of March and April 2020.
We continue to manage our business operations carefully to
preserve cash during this strategic transition and are excited by
the forward-looking growth potential of both Cloud Telephony and
Hybridium.
Strong commercial momentum in Cloud Telephony
In Q3 2020, the Group announced the launch of its Cloud
Telephony solution, integrated into Microsoft Teams, which enables
users to make phone calls to external phone numbers and receive
phone calls to their own work phone numbers, all seamlessly via
their Teams-enabled devices. LoopUp's differentiated platform
enables multinational enterprises to consolidate their telephony
provision globally with one vendor partner - LoopUp - rather than
from multiple geographic-specific carriers.
Following 31 new Cloud Telephony contract wins during FY2021 -
the Group's first full year of trading since the launch of its
solution for Microsoft Teams - the Group has added 16 additional
new contract wins during FY2022 to date. This performance places
the Group on track to meet its full year target of securing 50
additional contract wins during the full year.
In aggregate, these 47 contract wins - 31 in FY2021 and 16 in
FY2022 to date - represent:
-- Minimum Annual Recurring Revenue (ARR) of c.GBP0.8 million
and minimum Total Contract Value (TCV) of c.GBP3.1 million
based on minimum contracted levels;
-- Expected ARR of c.GBP1.9 million and expected TCV of
c.GBP6.2 million based on expected rollout levels where
LoopUp has relatively strong visibility of customer intent
based on conversations, planning and pricing; and
-- Potential ARR of c.GBP4.4 million and potential TCV of
c.GBP13.8 million based on identified potential rollout
levels but where LoopUp currently has less clear visibility
of customer intent.
In addition to the 47 contract wins, the Group's sales pipeline
of potential new Cloud Telephony opportunities continues to grow
and now stands in excess of GBP100 million of additional potential
ARR, of which approximately 17% is at written proposal stage or
later.
Operationally, all customer deployments to date have been
successful, and all rollouts are progressing positively.
In August 2021, the Group was awarded the 'Calling for Microsoft
Teams Advanced Specialization', a status given by Microsoft to
partners that demonstrate deep knowledge, extensive experience, and
proven success in the deployment and management of Microsoft Teams
Calling and Phone System. Microsoft's Advanced Specialization
series are the top status level, above and beyond Gold productivity
competencies, and allow partners to differentiate their
organisations and capabilities further with their customers,
prospects and partners.
We are excited by the potential of our differentiated solution
in this large market, which is forecast to grow to c.GBP29 billion
by 2025(3) .
Acquisition of SyncRTC, since rebranded to Hybridium
In October 2021, the Group acquired SyncRTC Inc., a hybrid
auditorium technology business, at an enterprise value of GBP3.3
million. The Group has since rebranded this line of business to
Hybridium ( www.hybridium.com ).
The acquisition stemmed from the Group's longstanding
relationship with SyncRTC CEO, Victor Sanchez, who founded the
company in 2013. Following the acquisition and its successful
integration, Victor has taken on the combined role of President of
Hybridium and LoopUp Group CTO.
Hybridium combines video wall and hologram technology, bringing
unrivaled engagement and analytics to larger scale hybrid
education, corporate training and events such as management
onsites, departmental kick-offs, capital markets days and thought
leadership seminars. Events with Hybridium benefit from ultra-low
latency at ultra-high resolution, with full video wall layout
flexibility facilitating any content on any screen.
In April 2022, Hybridium signed a landmark deal with Telefónica,
which is deploying the solution at 'Universitas', its global
innovation and talent hub, located at its Madrid headquarters in
Distrito Telefónica. The initial two-year contract with Telefónica
is for a minimum total value of approximately EUR 200,000, with
potential for expansion and extension.
Business priorities
Looking ahead into FY2022, the Group expects to see the
following developments:
-- Cloud Telephony: the next phase of commercial traction
- - Continued flow of new opportunities into the sales pipeline
- - Further maturation of the pipeline towards more progressed
stages in the sales cycle
- - Increased rate of successful conversions into new customer
wins
- - Progression towards a state of predictable revenue growth
at attractive unit customer acquisition economics
-- Cloud Telephony: introduction of highly scalable strategic
distribution partnerships
- - Formation of strategic partnerships with major Microsoft
partners, who sell other related Microsoft technology but
are not licensed to sell cloud telephony, particularly on
a multi-jurisdictional basis consistent with their enterprise
customer bases
-- Hybridium: extending distribution into the enterprise market
- - Extension of Hybridium's target market from its roots in
education to encompass the corporate market, in line with
post pandemic demand for communications tools that can drive
communications, learning and engagement in the hybrid workplace
-- Hybridium: introducing LoopUp-managed hybrid events in London
- - Extension of the Group's long-established virtual events
business by launching a managed hybrid events capability,
initially as a proof of concept in London
Outlook
The strong and accelerating commercial traction in our primary
forward-looking growth line of business, Cloud Telephony, as well
as the exciting early traction for Hybridium in its extended
corporate market, provide affirmation of the Group's chosen
strategic transition path. While we continue to manage our
operations carefully during this transition to preserve cash, these
growth lines of business give us confidence and excitement in the
Group's medium-term outlook.
Steve Flavell Michael Hughes
co-CEO co-CEO
3. Source: Gartner 2022
Chief Financial Officer's Review
During 2021, the Group has made good progress in its strategic
transition towards hybrid communications and collaboration, which
began in the latter part of 2020 with the launch of its Cloud
Telephony product for Microsoft Teams. The acquisition of SyncRTC
(rebranded as Hybridium in 2022) in October 2021 added to the
Group's product offerings.
Operating Results
With the acquisition of SyncRTC Inc. in October 2021 (since
rebranded to Hybridium), the Group has added a new revenue stream:
hybrid auditorium technology. The segmental reporting now considers
the following segments:
-- Revenue from our Cloud Telephony, Remote Meetings
and Managed Events capabilities, all delivered on
LoopUp's global technology platform, is categorised
as LoopUp Platform Capabilities ("LPC");
-- Revenue from the provision of hybrid auditorium technology
is categorised as "Hybridium"; and
-- Revenue from the resale of Cisco WebEx meetings is
categorised as "third party resale services".
2020 was an exceptional year due to the global lockdown having a
hugely positive, but relatively short-lived impact on revenues.
While revenue spiked in Q2 and Q3 2020, a steady decline then set
in as enterprises progressively moved to more holistic Unified
Communications platforms, such as Microsoft Teams, rather than
using discrete meetings products. Relative to that high point, 2021
revenue from LPC decreased by 70% to GBP13.1 million (2020: GBP43.0
million), and revenue from third party resale services declined by
37% to GBP4.5 million (2020: GBP7.2 million).
Included in the LPC figures is GBP0.74 million of Cloud
Telephony revenue, for which 2021 was the first year of trading
(excluding the Group's legacy cloud telephony capability for Skype
for Business).
The Group's overall gross profit decreased by 62% to GBP13.5
million (2020: GBP35.6 million), representing a gross margin of
69.0% (2020: 70.9%). This slight decrease of two percentage points
reflects a change in mix between LPC and lower margin third party
resale services.
The gross profit on LPC business fell by 65% to GBP11.7 million
(2020: GBP33.5 million), at a slightly improved gross margin of
79.1% (2020: 77.8%).
The administrative costs of the Group in 2021 were reduced by
39% on 2020 levels at GBP12.3 million (2020: GBP20.3 million).
Management and the Board have actively managed costs in line with
the reduced revenues, and this has included reorganising staffing
levels where necessary. Furthermore, the Group's performance in
2020 gave rise to a large bonus accrual, which was not the case in
2021.
Assets and Cash Flows
The Group has reassessed the carrying value of its intangible
assets as at 31 December 2021, which has led to an exceptional
impairment charge of GBP19.6 million in respect of the customer
relationships asset that arose on the acquisition of MeetingZone in
2018. The majority of the customers represented by this asset were
Remote Meetings and Managed Events customers, and the decline in
those lines of business has resulted in: (1) this asset needing to
be impaired; and (2) the amortisation period being revised down to
6 years from the original 15 years. The does not apply to the
goodwill recognised on the same acquisition, as the technological,
telecommunications and operating platform acquired is a key part of
the Group's Cloud Telephony offering going forward.
The Group had an operating cash outflow after capital
expenditure of GBP11.3 million (FY2019: GBP11.4 million inflow).
This was partly offset by the proceeds of a placing in October 2021
which raised GBP8.85 million and enabled a prepayment of GBP4.1
million of term debt in addition to the GBP1.7 million that was
scheduled.
Net debt has risen to GBP2.4 million as at 31 December 2021
(2020: GBP0.7 million).
In 2018, the Company entered into a term loan with Bank of
Ireland for GBP17.0 million, which has since reduced to GBP6.76
million as at 31 December 2021, following an additional repayment
of GBP4.10 million following the Group's GBP8.85 million placing in
October 2021 (balance at 31 December 2020: GBP12.75 million). Since
the year-end, the Group has successfully renegotiated and amended
this senior debt with Bank of Ireland to reflect the Group's
ongoing strategic transition plan. Key elements of the amended
arrangements include:
-- a holiday on planned principal repayments through to
June 2023, representing GBP1.7 million in aggregate
deferred payments;
-- a margin increase of 2.0 percent, taking the total interest
rate to 4.5 percent above the Sterling Overnight Index
Average (SONIA);
-- continuation of the Group's undrawn revolving credit
facility of GBP1.5 million;
-- an extension of the term through to September 2023;
and
-- a revised set of financial covenants which are more
concerned with sufficient ongoing cash liquidity and
the growth objectives for Cloud Telephony and Hybridium
in the Group's transition business plan.
Due to the reduced scale of the business since the high point in
2020, the Group's management and Board have carefully reviewed both
near and mid-term cash forecasts and are comfortable with the
Group's application of the going concern basis of accounting.
Simon Sacerdoti
CFO
Unaudited Consolidated Statement of Comprehensive income
For the year ended 31 December
2021
2021 2020
Restated
Note GBP000 GBP000
Revenue 19,526 50,230
Cost of sales (6,058) (14,632)
--------- ---------
Gross profit 2 13,468 35,598
Adjusted administrative expenses(i) (12,273) (20,270)
--------- ---------
Adjusted EBITDA (ii) 1,195 15,328
Depreciation (1,760) (1,702)
Amortisation of development costs (5,582) (4,581)
Adjusted operating (loss) /
profit (iii) (6,147) 9,045
Exceptional reorganisation and (392) -
tax charge
Exceptional impairment charge (19,597) -
Amortisation of acquired intangibles (2,210) (2,210)
Share-based payments charges (2,208) (575)
Operating (loss) / profit (30,554) 6,260
Finance costs (465) (599)
--------- ---------
(Loss) / profit before income
tax (31,019) 5,661
Income tax 3,104 826
--------- ---------
(Loss) / profit for the year (27,915) 6,487
--------- ---------
Currency translation (loss) (340) ( 75)
--------- ---------
Total comprehensive (loss) /
income for the year attributable
to the equity holders of the
parent (28,255) 6,412
========= =========
(Loss) / earnings per share
(pence): 3
Basic (48.6) 11.7
Diluted (48.6) 10.8
========= =========
(i) Total administrative expenses excluding depreciation, amortisation
of development costs and acquired intangibles, non-recurring
transaction costs, exceptional reorganisation costs, exceptional
impairment charges and share
based payments charges.
(ii) Adjusted EBITDA is operating (loss) / profit stated before
depreciation, amortisation of development costs and acquired
intangibles, non-recurring transaction costs, exceptional
reorganisation and tax charge, exceptional impairment charges
and share based payments charges.
(iii) Before amortisation of other intangible assets, non-recurring
transaction costs, exceptional reorganisation costs, exceptional
impairment charges and share based payments charges.
Unaudited Consolidated Statement of Financial Position
As at 31 December 2021
2021 2020
GBP000 GBP000
Restated
Assets:
Property, plant and equipment 2,368 2,663
Right of use assets 2,130 2,951
Development costs 12,726 11,389
Goodwill and other intangibles 41,063 58,957
Total non-current assets 58,287 75,960
--------- ---------
Trade and other receivables 3,608 6,875
Cash and cash equivalents 5,465 12,086
Current tax 1,862 1,647
Total current assets 10,935 20,608
--------- ---------
Total assets 69,222 96,568
--------- ---------
Liabilities:
Trade and other payables (3,387) (6,305)
Accruals and deferred income (2,036) (3,605)
Lease liabilities (956) (953)
Borrowings (1,700) (1,700)
Total current liabilities (8,079) (12,563)
--------- ---------
Net current assets 2,856 8,045
Non-current liabilities:
Borrowings (6,181) (11,050)
Lease liabilities (1,633) (2,372)
Deferred tax (4,150) (5,581)
--------- ---------
Total non-current liabilities (11,964) (19,003)
--------- ---------
Total liabilities (20,043) (31,566)
Net assets 49,179 65,002
========= =========
Equity
Share capital 485 277
Share premium 70,860 60,677
Other reserve 12,691 12,691
Foreign currency translation
reserve (2,749) (2,409)
Retained loss (32,108) (6,234)
--------- ---------
Shareholders' funds attributable
to equity owners of parent 49,179 65,002
========= =========
Unaudited Consolidated Statement of Changes in Equity
For the year ended 31 December 2021
Share Share Other Foreign Retained Shareholders
capital premium reserve currency profit funds/
translation / (loss) (deficit)
reserve attributable
to equity
owners
of parent
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
As at 1 January
2020 (Restated) 276 60,588 12,691 (2,334) (13,296) 57,925
--------- --------- --------- ------------- ---------- --------------
Profit for the year - - - - 6,487 6,487
Other comprehensive
income - - - (75) - (75)
Total comprehensive
profit / (loss)
for the year - - - (75) 6,487 6,412
--------- --------- --------- ------------- ----------
Transactions with
owners of parent
in their capacity
as owners:
Equity share-based
payment compensation - - - - 575 575
Share issues 1 89 - - - 90
--------- --------- --------- ------------- ---------- --------------
As at 31 December
2020 (Restated) 277 60,677 12,691 (2,409) (6,234) 65,002
--------- --------- --------- ------------- ---------- --------------
As at 1 January
2021 277 60,677 12,691 (2,409) (6,234) 65,002
--------- --------- --------- ------------- ---------- --------------
Loss for the year - - - - (27,915) (27,915)
Other comprehensive
income - - - (340) - (340)
Total comprehensive
(loss) / profit
for the year - - - (340) (27,915) (28,255)
--------- --------- --------- ------------- ---------- --------------
Transactions with
owners of parent
in their capacity
as owners:
Equity share-based
payment compensation 4 163 - - 2,041 2,208
Share issues 204 10,020 - - - 10,391
As at 31 December
2021 485 70,860 12,691 (2,749) (32,108) 49,179
--------- --------- --------- ------------- ---------- --------------
Unaudited Consolidated Statement of Cash Flows
For the year ended 31 December 2021
2021 2020
Restated
GBP000 GBP000
Net cash flows from operating
activities
(Loss) / profit before income tax (31,019) 5,661
Non-cash adjustments
Depreciation and amortisation 8,713 7,612
Share-based payments charges 2,208 575
Impairment charge 19,597 -
Interest payable 465 599
Working capital adjustments
Decrease in trade and other receivables 5,018 1,998
(Decrease) / increase in trade
and other payables (6,343) 1,370
Tax received 1,111 1,200
Net cash (used in) / generated
by operations (250) 19,015
--------- ---------
Cash flows from investing activities
Purchase of property, plant and
equipment (578) (757)
Addition of intangible assets (6,919) (6,866)
Payment for acquisition of subsidiary (3,622) -
Net cash used in investing activities (11,119) (7,623)
--------- ---------
Cash flows from financing activities
Proceeds from share issue net of
issue costs 10,391 90
Repayment of loans (5,832) (1,700)
Loans acquired on acquisition 1,020 -
Interest and finance fees paid (465) (599)
Net cash generated from financing
activities 5,114 (2,209)
--------- ---------
Net (decrease) / increase in cash
and equivalents (6,255) 9,214
Cash and cash equivalents brought
forward 12,086 3,000
Effect of foreign exchange rate
changes (366) (128)
--------- ---------
Cash and cash equivalents carried
forward 5,465 12,086
========= =========
Notes to the Financial Statements
1. Background and basis of preparation
The principal activity of the Group is a premium cloud
communications platform for hybrid and remote communications.
LoopUp Group plc ('the Group') is a limited liability company
incorporated and domiciled in England and Wales, with company
number 09980752. Its registered office is The Tea Building, 56
Shoreditch High Street, London E1 6JJ.
The unaudited summary financial information set out in this
announcement does not constitute the Group's consolidated statutory
accounts for the years ended 31 December 2021 or 31 December 2020.
The results for the year ended 31 December 2021 are unaudited. The
statutory accounts for the year ended 31 December 2021 will be
finalised on the basis of the financial information presented by
the Directors in this preliminary announcement, and will be
delivered to the Registrar of Companies in due course. The
statutory accounts are subject to completion of the audit and may
also change should a significant adjusting event occur before the
approval of the Annual Report.
The statutory accounts for the Group for the year ended 31
December 2020 have been reported on by the Group's previous
auditors and delivered to the Registrar of Companies. The auditor's
report on those accounts was unqualified and did not include
references to any matter which the auditors drew attention by way
of emphasis without qualifying their report and did not contain
statements under section 498(2) or (3) of the Companies Act
2006.
The unaudited summary financial information set out in this
announcement have been prepared using the accounting policies as
described in the December 2020 audited year end statutory accounts
and have been consistently applied.
The preliminary announcement for the year ended 31 December 2021
was approved by the Board for release on 7 June 2022.
Prior year restatements
During the year, the Group identified that certain assets,
liabilities and charges relating to right of use assets had been
misstated in prior years. These balances have been restated as at 1
January 2020 and 31 December 2020, and the adjustments at each date
are set out below:
31 December 1 January
2020 2020
GBP000 GBP000
------------------------------------ ----------- ---------
Right of use asset 527 76
Lease liabilities (687) (290)
Prepayments 131 -
Trade creditors 60 -
Opening reserves - 214
Depreciation of right of use assets 3 -
Finance charges 31 -
Exchange differences (65) -
------------------------------------- ----------- ---------
Basic and diluted earnings per share was unaffected.
2. Revenue and segmental reporting
The Directors have identified the segments by reference to the
principal groups of services offered and the geographical
organisation of the business as reported to the chief operating
decision-maker (CODM).
In addition to the segments adopted in the 2020 annual report
and accounts, this year a new segment exists as a result of the
acquisition of SyncRTC in October 2021, that of Hybridium.
In July 2020 the Group announced a major extension to the LoopUp
proposition to include global cloud voice services via Direct
Routing integration with Microsoft Teams. This capability,
alongside the Group's longstanding Remote Meetings and Managed
Events capabilities, combine into a category termed LoopUp Platform
Capabilities (LPC), as below. The revenue previously categorised as
'third party and other services' revenue has now been categorised
as 'third party resale services'.
Segmental revenues are external and there are no material
transactions between segments.
The Group's largest customer represented less than 5% of total
revenue in both years.
No segmental balance sheet was presented to the CODM. Overheads
are not presented to the CODM on a segmental basis.
The Group's revenue disaggregated by primary geographical
markets is as follows:
LoopUp Third party
Platform Resale
Capabilities Services Hybridium Total
GBP000 GBP000 GBP000 GBP000
------------------------------------- ------------ ----------- --------- ------
For the year ended 31 December 2021:
UK 7,027 1,624 13 8,664
EU 2,181 1,136 138 3,455
North America 5,363 1,684 61 7,108
Rest of World 269 - 30 299
------------------------------------- ------------ ----------- --------- ------
Total 14,840 4,444 242 19,526
------------------------------------- ------------ ----------- --------- ------
For the year ended 31 December 2020:
UK 22,634 2,957 - 25,591
EU 6,217 1,573 - 7,790
North America 13,258 2,651 - 15,909
Rest of World 940 - - 940
------------------------------------- ------------ ----------- --------- ------
Total 43,049 7,181 - 50,230
------------------------------------- ------------ ----------- --------- ------
The Group's revenue disaggregated by pattern of revenue
recognition is as follows:
LoopUp Third party
Platform Resale
Capabilities Services Hybridium Total
GBP000 GBP000 GBP000 GBP000
---------------------------------------- ------------ ----------- --------- ------
For the year ended 31 December 2021:
Services transferred at a point in time 12,740 10 - 12,750
Services transferred over time 2,100 4,434 242 6,776
Total 14,840 4,444 242 19,526
---------------------------------------- ------------ ----------- --------- ------
For the year ended 31 December 2020:
Services transferred at a point in time 40,774 599 - 41,373
Services transferred over time 2,275 6,582 - 8,857
---------------------------------------- ------------ ----------- --------- ------
Total 43,049 7,181 - 50,230
---------------------------------------- ------------ ----------- --------- ------
The Group's gross profit disaggregated by segment is as
follows:
2021 2020
GBP000 GBP000
------------------------------ -------- --------
LoopUp Platform Capabilities 11,740 33,497
Third party resale services 1,487 2,101
Hybridium 241 -
------------------------------ -------- --------
13,468 35,598
------------------------------ -------- --------
The Group's non-current assets disaggregated by primary
geographical markets are as follows: [IFRS16]
2020
2021 Restated
GBP000 GBP000
--------------- -------- ----------
UK 56,851 74,230
Other EU 253 24
North America 1,181 1,701
Rest of world 2 5
---------------- -------- ----------
58,287 75,960
--------------- -------- ----------
3. Loss / earnings per share
The basic earnings per share is calculated by dividing the net
(loss) / profit attributable to equity holders of the Group by the
weighted average number of ordinary shares in issue during the
year.
12 months
12 months to
to 31 December
31 December 2020
2021 Restated
------------------------------------- ------------- -------------
(Loss) /profit attributable
to equity holders (GBP000) (31,121) 6,487
Adjusted profit attributable
to equity holders (GBP000)* (6,649) 9,272
Weighted average number of ordinary
shares in issue (000) 63,992 55,330
Basic (loss) / earnings per
share (pence):
* Basic adjusted* (10.4) 16.8
- Basic (48.6) 11.7
* - Calculated using the (loss) / profit attributed to equity
holders adjusted for exceptional reorganisation costs, exceptional
impairment charges, amortisation of acquired intangibles and share
based payment charges.
The diluted loss per share in 2021 was equal to the basic loss
per share, as no potentially dilutive shares were deemed not to be
anti-dilutive.
4. Dividends
The Directors do not recommend the payment of a dividend (2020:
GBPnil) .
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END
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