Bits and Splits - stock.adobe.co
Managed service provider (MSP) CloudCoCo has successfully navigated the choppy waters of the first few months of 2023, growing its customer base and increasing revenues.
Shared interim results for its half year to 31 March 2023, the MSP saw revenues improve by 11%, up to £12.9m from £11.6m, with 70% of that coming from recurring contracts. Gross profit increased by 13% to £4.3m in the period.
The firm landed 27 new logos in the first half, which was 70% of the number it signed in the whole of the previous fiscal year, with a growing pipeline the result. It also signed a number of multi-year deals, including with Gepp Solicitors, Jensten Group and Marylebone Cricket Club.
To help drive the business forward, the business made some strategic hires in the first half of its financial year, including a head of multicloud. That helped the firm launch a multicloud offering, which is designed to attract larger, more complex deals with enterprises. Investments were also made in enhancing sales and marketing capabilities.
Since March, the firm has also sealed partnerships with Abstract Tech and Ingram Micro as part of plans to create fresh revenue opportunities.
“We have delivered a solid H1 performance, winning new logo customers and building our new business pipeline at a healthy rate despite the challenges posed to organisations across the UK by the economic backdrop,” said CloudCoCo CEO Mark Halpin.
Back in March, the MSP indicated it was aiming to break through the £100m revenue barrier in the next few years, and Halpin said it was still on course to grow the business.
“Our confidence in reaching our long-term growth ambitions is underlined by the operational headway achieved during the period. We have invested in expanding and optimising our teams, including a significant elevation of talent across the group through a number of important hires in key strategic areas,” he said.
During its last fiscal year, the firm sealed four acquisitions, including IDE Group Connect and Nimoveri, with those deals contributing positively to the bottom line. This move also helped the business shape a strategy around four main areas: connectivity, multicloud, collaboration and cyber security.
Halpin indicated that it would continue to consider mergers and acquisitions as a means of bolstering the group’s market position.
“While conscious of the prevailing economic headwinds and the impact on some of our customers, we are well placed to continue to navigate them and are confident of making continued steady strategic and commercial progress in the second half, ready to accelerate when conditions permit,” he said.
“Alongside this, we continue to actively explore opportunities to complement organic growth through selective acquisitions. We are assessing our options to fund such acquisitions and also to refinance our existing debt,” added Halpin.