IT services provider Cloudcoco said it remains “focussed” amid a string of economic headwinds which have brought down shares this year.
In its interim results, Cloudcoco said gross profit had remained “stable” at £4.3m, with a reduced margin of 30 per cent.
Revenue increased 11 per cent to £14.3m, alongside a 33 per cent rise in earnings before interest, taxation, depreciation and amortziation (EBITDA) to £1.2m.
But the London-listed firm said much of the first six months had been spent exploring options to refinance legacy loan notes which had been due for repayment to MXC Guernsey in October 2024. An extension to the deadline has now been agreed to August 2026.
“MXC remains supportive both as a shareholder and loan note provider,” Cloudcoco said. “However, it is clear that the loan notes will not be able to be repaid within the required period via operating cash flows and so we continue to work with MXC to find the best solution for the repayment of the loan notes.”
Shares are down nearly 60 per cent this year to date.
The group is set for a full strategic review under interim chief executive Ian Smith, who stepped into the top job after the sudden departure of founder Mark Halpin in April.
In a statement to markets, Smith said: “These interim results do not reflect the period of my tenure, but they do highlight a number of the challenges that the business faces and which we will work on resolving to ensure the Company can meet its liabilities and is able to look to the future with confidence.”
Amid the review, Cloudcoco said business would continue “as usual” despite the challenging economic environment, which has impacted the purchasing decisions of some of its customers.