LoopUp trades 'in line' as macro headwinds begin to stabilise
By Iain Gilbert
Date: Monday 24 Feb 2020
(Sharecast News) - Remote meetings company LoopUp said on Monday that it had traded in line with market expectations during 2019 after some macro headwinds in the UK began to stabilise.
LoopUp said revenues were set to increase 24.2% to ?42.5m. However, underlying earnings were projected to come to ?6.4m - a 16.8% year-on-year decline.
While headwinds in the UK that brought about the lower underlying earnings had stabilised, LoopUp warned that similar issues were now affecting its US operations, with minutes per active user falling 8% in the second half.
However, co-chief executives Steve Flavell and Michael Hughes said LoopUp still operated in "a vibrant market" despite the "recent short-term challenges facing the business".
"Our differentiated product experience focuses on the particular needs of the professional services world, which are materially distinct from the market in general," said the pair.
LoopUp also said it had experienced intermittent service issues during November and early December, which gave rise to the potential for "higher than normal churn" in the first half of 2020. The group added that it was completely focused on mitigating any potential impact from the issues.
Looking ahead, the AIM-listed company said it was "increasingly focused on the professional services market" and would be reallocating costs to product development in order to drive differentiation of its products.
As of 0900 GMT, LoopUp shares had sunk 15.15% to 70p.
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