Outsourcery has announced its interim results for the six months ended 30 June 2015. The results are mixed and cover a period where the share price continued to fall, albeit only slightly. Revenues for the period where up to £4.1m from £3.4m in 2014, adjusted EBITDA dropped from £2.8m to £2.1m for the same period.
Ken Olisa OBE, Non-Executive Chairman commented, “It is pleasing to see revenue growing and losses narrowing. This has been achieved by a renewed focus of our go to market activities and a programme of cost reductions.
Our principal route to market – the third party channel – has continued to increase its effectiveness, albeit at a slower than ideal rate. As a result we have initiated some targeted direct sales activities which are showing early signs of bearing fruit. This ability to pivot our activities as circumstances demand is a testament to the entrepreneurial leadership of our Co-CEOS who, with the support of the Board, are committed to tackling the challenges of being a small and growing business one at a time.”
This news comes at a time when entrepreneur and UKFast CEO Lawrence Jones MBE invested £1 million in Outsourcery. Jones’s investment represents a 10.52 per cent of existing issued share capital of the cloud provider, which floated on AIM in 2013 and operates in an adjacent market to Jones’s Manchester-based cloud infrastructure firm UKFast.
Jones said: “This has the hallmarks of a great investment. I’ve known Piers [Linney, Outsourcery Co-CEO] for more than 25 years and I am looking forward to what the future holds.”
Jones has an impressive track record in the hosting industry, growing UKFast organically from a bedroom business in 1999 to a 250-strong team, £36 million turnover, c.£15m EBITDA firm.
Of the investment, Outsourcery Plc Co-CEO, Piers Linney, said: “Lawrence’s investment in Outsourcery is a positive step for both him and our business. Manchester is growing in significance as a hub for innovative and technologically driven companies like ours and this is a great vote of confidence in the progress that we have made. A combination of this investment and added industry experience will take us one step further on our growth plans.”
Although the two cloud firms operate in similar markets, there is little crossover between the two. Jones added: “I have a great respect for where Piers and Simon [Newton, Outsourcery Co-CEO] have taken Outsourcery so far and I look forward to contributing to future success with my experience as a technology entrepreneur.”
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