REG - Cloudcoco Group PLC - Year End Trading Update

CloudcocoAnnouncement

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RNS Number : 0998W  Cloudcoco Group PLC  10 March 2026

The information contained within this announcement is deemed by CloudCoCo to
constitute inside information pursuant to Article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.

 

10 March 2026

CloudCoCo Group plc

("CloudCoCo", the "Company" or the "Group")

 

Trading Update

 

CloudCoCo (AIM: CLCO), the Sheffield-based e-commerce and IT procurement group
delivering tailored, next-day IT solutions through its Systems Assurance and
MoreCoCo divisions, is pleased to provide an update on its trading for the
year ended 30 September 2025 ("FY25").

 

The financial year ended 30 September 2025 marked a transformative period for
the Group. Following the strategic disposal of its legacy managed services
businesses, CloudCoCo Limited and CloudCoCo Connect Limited, in October 2024,
the Group has successfully transitioned into a leaner, debt-free and
asset-light organisation.

 

Current operations are focused on two core pillars:

 

·      The MoreCoCo e-commerce platform; and

·      Systems Assurance, the Group's specialist B2B IT procurement
business.

 

Financial Performance

 

Trading during the year to 30 September 2025 was characterised by disciplined
execution and improving operational momentum:

 

·      Revenue: Continuing operations for the year to September 2025 are
expected to generate revenues of approximately £8.0 million (FY24: £8.7
million). Despite vendor disruptions early in the year, quarterly revenues
increased steadily from c.£1.4 million in Q1 to c.£2.4 million in Q4,
representing an annualised run-rate approaching the Group's initial £10
million revenue target.

 

·      Profitability: Trading EBITDA for continuing operations is expected
to improve to approximately £80,000 (FY24: £63,000) for FY25. The Group is
expected to report a net profit for FY25 of approximately £2.5 million,
primarily reflecting the gain on disposal of subsidiaries.

 

·      Margins: Gross margins in FY25 reached approximately 15% before
marketplace and marketing fees supported by improved pricing discipline and
increased automation.

 

·      Cash Position: The Group ended FY25 with a cash balance of
approximately £635,000 and, whilst loss-making after plc costs, remains free
from long-term debt. The cash balance at 27 February 2026 was approximately
£280,000.

Operational Progress

 

Significant operational progress has been made during the year:

 

·      Automation and Scale: Over 50% of e-commerce orders are now
processed without manual intervention. The product catalogue has grown to
include more than 190,000 IT products, all available for next-day delivery.

 

·      B2B Growth: Systems Assurance onboarded 11 new business customers,
and the branded WebStore platform now supports approximately 60 business
clients, creating repeatable, software-enabled revenue streams.

 

·      Cost Discipline: PLC-level costs were reduced by 21% to
approximately £353,000 per annum. In addition, the Directors voluntarily
reduced their combined salaries by £100,000 per annum from April 2025 to
accelerate the path to sustainable cash generation.

 

Outlook

 

CloudCoCo entered FY26 with a clear strategic focus. The Board's objective is
to scale annual revenues towards its initial £10 million target at a
sustainable margin, after which it expects to generate consistent positive
monthly cash flow at PLC level.

 

Growth will be driven by marketplace diversification, margin-led digital
marketing, expansion of direct website sales, and continued investment in
automation and higher-margin services.

 

The Directors are targeting a growth strategy to scale revenues beyond the
Group's initial

£10 million run-rate, with an ambition to exceed £15 million within three
years, driven by expanded B2B engagement, improved direct customer acquisition
and higher-value revenue streams.

 

A margin and scalability enhancement programme is underway, details of which
are expected to be announced shortly, focused on increasing direct and
alternative e-commerce marketplace sales and investing in automation and
AI-enabled tools to support increased transaction volumes with minimal
incremental headcount.

 

The Company expects to announce its annual results for the year ended 30
September 2025 by the end of March 2026.

 

Simon Duckworth, Non-Executive Chairman, commented:

 

"With FY25 revenues from the continuing operations expected to be
approximately £8.0 million, exiting the year at an annualised run-rate
approaching £10 million, we are encouraged by the progress made during the
year.

 

The Directors are currently focused on delivering a structured pathway to
scale the business beyond this level. The Board is evaluating a number of
strategic initiatives designed to accelerate growth and enhance the Group's
B2B capabilities."

Contacts:

 

 CloudCoCo Group plc                                          Tel: +44 (0) 114 292 2930

 Simon Duckworth (Chairman)

Darron Giddens (CFO)

Peter Nailer (Managing Director)

 Allenby Capital Limited - (Nominated Adviser & Broker)       Tel: +44 (0)20 3328 5656

 Jeremy Porter / Vivek Bhardwaj - Corporate Finance

Tony Quirke / Amrit Nahal - Equity Sales

 

About CloudCoCo

 

CloudCoCo is a streamlined, growth-focused technology group specialising in
e-commerce and IT procurement business based in Sheffield. Combining expert IT
procurement solutions through Systems Assurance with the scalable e-commerce
capabilities of MoreCoCo (www.morecoco.co.uk (http://www.morecoco.co.uk) ),
helping organisations deliver enhanced efficiency, security, and agility.
Backed by strong vendor partnerships and a team of industry specialists, we
deliver tailored solutions and next-day access to hundreds of thousands of IT
products.

www.cloudcoco.co.uk (http://www.cloudcoco.co.uk)

 

 

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