REG - Toople PLC - AGM Statement and Update on Trading

ToopleAnnouncement

31/03/2022 07:00

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RNS Number : 6701G  Toople PLC  31 March 2022

For release at 07.00, 31(st) March 2022

Toople PLC

("Toople" or the "Company")

AGM Statement and Update on Trading

Toople, a provider of bespoke telecom services to UK SMEs, will today hold its
Annual General Meeting (AGM) at the offices of Fieldfisher, Riverbank House, 2
Swan Lane, London EC4R 3TT at 10.00 a.m.

At the AGM, Richard Horsman, Chairman, will make the following statement:

"I am pleased to update shareholders on positive trading in both Q1 and Q2 of
the current financial year, as the business executes on its strategy of
achieving higher revenues with strong margins and stable cash generation.

"During the first quarter, overall demand for our services remained strong and
correspondingly when compared to Q4 of the last financial year, revenues have
increased by 9%, in line with management expectations.  This has translated
into a growth in gross profit of 17% and an improvement in EBITDA of 19% from
FY21 Q4 to FY22 Q1.  This momentum has carried on into Q2 of our current
financial year, with orders particularly strong in March."

"Furthermore, we are experiencing a material increase in Toople's high
bandwidth leased line orders.  These orders have significantly higher values
and greater margins than our core broadband orders.  This is significant as
it gives us better visibility on our revenue given that 50% of the initial
revenue consideration is received upfront and 50% paid on customer
installation completion.  Often customers require civil engineering work to
complete installation and in some instances this can give a lead time of three
to six months for completion."

"Importantly we are growing the business without any substantial increase in
the cost of customer acquisition and our fixed operating costs remain
stable.  Our sales support function in Durban South Africa, is now back to
working in the office following the easing of Covid restrictions, and that is
translating into higher productivity and sales figures.  We are also
achieving increased customer contact rates compared to those achieved in the
past 18 months.

"Overall, the Board considers the outlook for Toople to be very positive and
believes that increased revenue and gross profit figures will be achieved by
the Company as the UK economy learns to live with Covid-19 and returns to
normal.  We are well positioned to capitalise on new opportunities that are
presenting themselves in light of the more positive business environment."

-ends-

For further information please visit www.toopleplc.co
(http://www.toopleplc.co) .uk or contact:

 Toople PLC                                     Tel: 0800 0499 499

 Andy Hollingworth, Chief Executive Officer /

 Paul White, Chief Financial Officer

 Novum Securities Limited                       Tel: 020 7399 9400

 David Coffman

 Colin Rowbury

 Belvedere Communications                       Tel: 020 3687 2754

 John West

 Llew Angus

About Toople PLC (http://www.toople.com)

Toople PLC is incorporated in the UK and listed on the main market of the
London Stock Exchange.   The business currently trades under four main
brands: toople.com (http://toople.com) ; dmsluk.co.uk (http://dmsluk.co.uk) ;
broadbandandphones.co.uk (https://broadbandandphones.co.uk/) ;
checkthatcompany.co.uk (http://www.checkthatcompany.co.uk/) .  Toople.com
(http://www.toople.com/)  provides bespoke telecoms services for its fast
growing target market of UK SMEs with between one and 500 employees.
Services offered by the Group include business broadband, fibre, EFM and
Ethernet data services, business mobile phones, cloud PBX and SIP Trunking and
Traditional Services (calls and lines) all of which are delivered and managed
via the Group's proprietary software platform.  The Group's wholly owned
subsidiary  DMS Holding (DMSL) (http://www.dmsluk.co.uk/) provides unified
communication services in the UK ranging from a single phone line to a
multi-site unified comms VoIP platform, delivered via a network of telecoms
and IT carriers and content providers across the UK including BT Business, BT
Global Services, Gamma, EE, Vonage, TalkTalk Business and O2.  DMSL acts as a
BT Premier re-seller for broadband connectivity, mobile and fixed voice and
cloud services and is responsible for over 250,000 BT customers and over
400,000 Revenue Generating Units.  The Company also owns a telecoms price
comparison website and a service offering company credit reference checking
and reports.  These complement the Group's IT and telecoms services.

 

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