REG - Toople PLC - Update on Trading

ToopleAnnouncement

23/07/2018 07:05

RNS Number : 3692V
Toople PLC
23 July 2018
 


For immediate release: 07.00, 23rd July 2018
Toople PLC
("Toople" or the "Company")
Update on Trading
Toople Plc (LSE: TOOP), a provider of bespoke telecom services to UK SMEs, today gives the following update on trading.
The Board is pleased to report that during the three months since 31 March 2018 the Company has made significant operational progress across a number of key areas within the business.  The Company has achieved a number of new contract wins which are performing well and driving revenue growth.  Total orders received across the business during the period were up 218% when compared to the same period in 2017.
Total revenues in the quarter grew by 27.2% when compared to 2017.  During the period, gross margins also improved to 14.76% (2017: 11.95%) and within the retail division this was even higher at 23.7% (2017: 17.6%).  Overall this has resulted in gross profit growth of 57.1% when compared to the corresponding period last year.
Details of some of the most notable contract wins are as follows:
·      minimum 24 month contract with London-based bakery to provide full telecoms services to their 52 retail sites and company headquarters
o  broadband, telephony and mobile Wi-Fi to all retail outlets
o  high-speed broadband, IDSN connectivity and Wi-Fi services to headquarters and distribution offices
·      14 month contract with Southern based tyre company which also operates a fleet of mobile service vans
o  all the business's mobile connections
·      24 month contract with a South East based IT, cloud and telecoms provider to move its wholesale telecoms spend to Toople
o  contract expected to be worth at least £360,000
·      initial 36 month contract with one of the UK's leading utility switching businesses
o  a full range of products and services: business broadband, fibre, EFM and Ethernet data services, business mobile phones, cloud PBX and SIP trunking and traditional services (calls and lines) - all delivered through Merlin
·      contract with leading energy business expanding its portfolio of products to offer telecoms and broadband solutions
o  Toople will provide its triple play services to the business's clients
·      contract with a tech services company, which will add telecoms solutions to their product offering and to be delivered by Toople
The Company continues to increase its marketing activity to drive organic growth and the investment in its new sales centre has delivered a healthy increase in orders per customer when compared with results achieved by its previously outsourced relationship, leading to an increased gross margin per customer.
In June 2018, Kevin Lawrence was appointed as CFO, which strengthens the executive team ahead of an intended move to complement the existing organic growth with the acquisition of other telecoms businesses.
Andy Hollingworth, CEO of Toople commented:
"We have worked hard to put in place new operational structures across the business and this has started to bear fruit with orders and total revenues up significantly when compared with the same period last year.  Importantly margins and gross profit are also improving.  We have won a number of significant new contracts and early indications about their success are very encouraging as revenue continues to grow.  The Board expects this to continue and we look to the future with confidence and optimism."
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Certain statements in this announcement contain inside information for the purpose of Article 7 of EU Regulation 596/2014.
For further information please visit www.toople.com or contact:



Toople PLC
Andy Hollingworth, Chief Executive Officer / Kevin Lawrence, Chief Financial Officer 


Tel: 0800 0499 499




Cairn Financial Advisers LLP
David Coffman / Richard Nash 


Tel: 020 7213 0880




Novum Securities Limited
Colin Rowbury 


Tel: 020 7399 9400




Turner Pope Investments Limited
Andy Thacker


Tel: 020 3621 4120




Belvedere Communications
John West / Kim van Beeck


Tel: 020 3567 0515



About Toople PLC
Toople Plc, a company incorporated in the UK provides a range of telecoms services primarily targeted at the UK SME market. 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 through Merlin, the Group's proprietary software platform.
The Group is differentiated by its focus on creating business broadband solutions, with robust and reliable packages that will enhance our customers company's. In addition, our vision is based on trust and transparency, with no hidden fees within our pricing policy providing customers with a clear understanding of cost.
Toople Plc has a strong and highly experienced Board and management team who are focused on growing the business both organically and by identifying earnings enhancing strategic acquisition opportunities.




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