Good morning!

Today's SCVR is a joint effort.

First we have LoopUp (LON:LOOP) and WANdisco (LON:WAND) by Paul, followed by my sections.

Edit: I forget to mention that Paul added several sections to yesterday's report (click here), which now includes all of the following:

Cheers

Graham



(This section by Paul Scott.)

LoopUp (LON:LOOP)

Share price: 161.5p (unch.)
No. shares: 41.0m
Market cap: £66.2m

Preliminary results – for year ended 31 Dec 2016.

This is a very interesting growth company, which I’ve written about here before. It’s a single product company – providing an improved conference call (with screen-sharing) facility. There’s no doubt that the product is excellent – I’ve tried it out, and it works very well indeed. There’s plenty of competition though, which I’ll come onto later.

Results today are as expected, with the figures tying in with those given in the trading update on 18 Jan 2017. Although, as with a lot of trading updates from many companies, management tend to cherry-pick the best numbers. So in that January update, LoopUp presented the £2.1m EBITDA number, but conveniently forgot to mention that translates into only £0.4m operating profit! This is one of the reasons I often hold back on buying shares until I’ve seen the full results, and not just cherry-picked highlights in a previous trading update.

Anyway, here are the key figures today;

LoopUp revenue up 39% to £12.8m.

There is a small amount of sundry additional turnover, for a now defunct deal with BT, so that can be ignored.

Note that top line growth has been consistently growing at c.40% p.a. for several years now, so a very good, stable growth trend is in place.

Gross margin is very high, at 75.9%.

Strong organic growth + high gross margins is a lovely combination, which leads to explosive profit growth, if overheads are fixed.

Overheads are not fixed though – a lot of the additional gross profit is being reinvested in increased sales & marketing expenditure, plus other overheads such as development.

EBITDA of £2.1m is up 102%.

Maiden operating profit achieved of…

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