‘Well-placed’ cloud software firm shaves losses

Cloudcall, the Leicester cloud-based software firm, has cut its losses and increased revenues by a third for the year-ending 31 December 2019.

Turnover was to £11.4m for the year, while losses were cut by £300,000 and now stand at £2.2m. The firm had a particulaly good year in the US, with revenues rising by 56% over the period.

Simon Cleaver, chief executive of CloudCall, said: “During the first two months of 2020, trading was in-line with expectations, but with the escalation of the coronavirus crisis in March and particularly since countries have been going into lockdown, we’ve started to see some new sales opportunities postponing decisions. This has been partially offset by a flurry of orders from existing customers preparing for their staff to work from home, but we expect this to be relatively short lived.

Cleaver said that in comparison to many companies CloudCall is “well-placed” to weather the pandemic.

He added: “In the current medical crisis and with our strong balance sheet, the Board is keen to stand by our excellent staff as much as possible, however we have already taken numerous decisive measures to significantly reduce current operating cash burn down to around £250k per month by May 2020 based on current activity levels and will continue to keep our operating costs under close review in the coming months.

“CloudCall is well capitalised and has the ability to reduce its cash burn relatively quickly. As the length of the current crisis is unknown, it’s impossible to accurately predict what the impact on our 2020 and 2021 revenues will be, but the Board is confident that CloudCall has sufficient cash to enable it to trade its way through this period of global uncertainty.”