Revenue up, losses down for Outsourcery
OUTSOURCERY, the cloud computing firm led by former Dragons’ Den investor Pier Linney, has reported encouraging progress in terms of revenue growth, but remains heavily in the red.
The group headquartered in Manchester, with offices in London and Leicester too, said it had cut costs by £1m in the 12 months to December 31 in what Linney acknowledged had been a “tough year”.
Total revenue grew 42% to £7.4m, with new customer wins and monthly recurring revenue increasing from £600,000 to £700,000.
Administrative expenses (excluding exceptional costs and employee share based payment charge) were tightly controlled at £9.1m, down from £10.1m a year earlier.
Adjusted EBITDA showed a loss of £4.6m (2013: £7.2m), while bottom-line losses were £7.6m, compared with £9.3m.
Piers Linney, said: “Recurring revenues, which represent 96% of total revenues, increased by 73%. This demonstrates a year of strong growth for Outsourcery.
“Our commercial and public sector sales pipelines are growing. In the year ahead we will focus on ensuring that we maintain our competitive advantage as well as embracing exciting new opportunities such as the launch of our carrier-grade Skype for Business service.
“Following a tough year during which we restructured our cost base, operations and go to market strategy, we have started the new year in a strong competitive position.”
The company which has 110 staff across its three offices said it had won new orders for more than 60,000 end-users within three FTSE 100 companies and NHS organisations.
