Acquisitions bolster revenues at CloudCoCo

Managed service provider CloudCoCo has seen a significant improvement in revenues as a result of its acquisition strategy.

The firm’s numbers for the year to 30 September 2022 included a 198% increase in revenues from £8.1m to £24.2m. Managed services accounted for 70% of revenues, with 95% of that relating to recurring contracted services.

Pre-tax losses widened to £2.6m from £2m as a result of combined amortisation and depreciation costs of £2m.

The firm sealed four acquisitions during the year, including IDE Group Connect and Nimoveri, with all of those contributing to its growth and supporting the firm’s decision to focus on four main areas: connectivity, multicloud, collaboration and cyber security.

Its previous full-year results saw the business add 39 fresh customers and land some multiyear contracts with a range of high-profile firms, along with the launch of its own Project Ignite to accelerate pipeline build and drive organic growth.

The business also launched the CloudCoCo Sales Academy, starting with five entry-level sales staff, to help cultivate its in-house expertise.

“Our central focus during the year centred around the swift and effective integration of the four acquisitions made in the second half of 2021, while also making sure the group was advancing as a single, unified unit,” said Mark Halpin, CEO of CloudCoCo.

“Through this process, we have taken important steps to rationalise our cost base and uncovered the significant potential we saw in these acquisitions,” he added.

Halpin indicated that the business was in a position to tap into growth areas and that the prospects for its current fiscal year were positive.

“Now a stronger and leaner outfit, we remain excited by the trajectory ahead for the business. Our market opportunity remains vast, underpinned by the significant capabilities and synergies unlocked through acquisition and integration and our investments into our sales functions,” he said.

“On this basis, we remain focused on driving our organic growth alongside identifying and executing on strategic M&A opportunities to accelerate our growth and deliver shareholder value,” he added.

It is clear that acquisitions will continue, with chairman Simon Duckworth using huis comments in the results document to outline its strategy. “Through organic growth and acquisition, CloudCoCo has fortified its position within the managed services and value-added reseller space,” he said.

“With the necessary corrective actions taken to ensure positive trading group EBITDA1 across the business during FY 2022, the group is now positioned as a larger and significantly more efficient platform from which it can scale and capture the considerable market opportunity available to it,” he added.

I the firm will build on the four acquisitions of last year and strike a few deals in its fiscal 2023.

“While our teams are focused on driving new business development in the new year, we will continue to appraise further acquisition opportunities, only progressing those that have exceptional potential and are a good strategic fit,” said Duckworth.