Coms Reflect on Successful Year so Far

Coms plc has announced unaudited Interim Results for the six months ended 31 July 2013. Where appropriate the results have been presented in a format excluding the discontinued VComm business in order to provide a like-for-like comparison and full transparency.

Period Highlights

•Revenue growth in the core business division of Cloud Telephony up by 161% to £1.846m (H1 2012: £0.708m) resulting in the core business becoming profitable
•Total Revenue up by 249% to £2.476m (H1 2012: £0.708m)
•c.96% of Total Revenues are recurring
•Gross Profits up by 124% to £1.026m (H1 2012: £0.457m)
•Gross Margins up to 41.5% from 33.3%
•Overall Loss for the period £119,000 (H1 2012: £337,000)
•Net Cash balance £1.026m (H1 2012: £0.1m)

David Breith, CEO of Coms, said “My first six months in this business have been a real challenge, but rewarding, and this has been a classic business turnaround. I have had to make tough decisions and rely upon key people. I am, however, pleased and proud to report on our tremendous progress to date and I am really looking forward to more of the same during H2.”

In his statement Breith said “Upon my appointment in early January 2013, I established a discipline and ethos, which was orientated towards making the Company achieve break-even within the first month. This necessitated making tough decisions in terms of organisation and staff in order that the business was ‘fit for purpose’.

As a result a new customer focused strategy was implemented and we immediately set about broadening the “Coms offering” as emphasised by the significant contract wins made during the period and our active and aggressive M&A strategy. Most significantly, the Company signed a contract to sell broadband and lines to MITIE Property Services Limited worth approximately £15m over two years of recurring revenue. The deal represents the largest contract win to date. In addition and as announced throughout the period we have acquired a number of bolt-on businesses, which have not only allowed us to significantly broaden our business offering, but also to refresh our technology base and IT systems that underpin our overall infrastructure. Overall, I am pleased to announce that this strategy was implemented effectively, which positions us well to deliver sustained future growth.

The financial results achieved for the first half-year demonstrate that the new strategy is working in that our revenue has grown (+249%), our gross margins have been significantly increased to 41.5% and that the overall cost base remains under tight control.

The revenue base is growing month-on-month and on the basis of our last billing month our annualised turnover would be c.£10m of which c.96% is recurring. Further strategic growth activity is planned including M&A, which remains a key plank of our strategy to accelerate the growth of this business.”

 

 

Consolidated Statement of Comprehensive Income

For the Six months ended 31 July 2013

 

Six months to 31 July 2013

Six months to 31 July 2012

 

Unaudited

Unaudited

 

£’000s

£’000s

Revenue

VOIP and service charges

2,312

608

PSTN

59

69

 

2,371

677

Equipment and related services

105

31

 

Discontinued Operations

1,124

Total revenue

2,476

1,832

Cost of Sales

(1,449)

(251)

 

Cost of Sales Discontinued Operations

(977)

Gross Profit

1,026

457

 

Gross Profit Discontinued Operations

147

 

Administrative expenses

(1,115)

(935)

 

 

 

Operating Loss

(89)

(331)

Finance costs

0

(6)

Loss before tax

(89)

(337)

Income tax expense/Exceptionals

(30)

Profit / loss from continuing operations before group costs

32

(135)

Profit / loss group costs

(151)

(202)

Other comprehensive income

Total comprehensive income for the period

(119)

(337)

 

Attributable to:

   – Owners of the parent

(119)

(337)

 

Loss per share

From continuing operations:

Basic and diluted

(0.0p)

(0.2p)

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David Dungay

Editor - Comms Business Magazine
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