Beleaguered cloud services provider Outsourcery has warned that it is investigating options to raise emergency cash, as its reserves continue to dwindle.
The Manchester-based company revealed that gross cash had fallen to £0.9m and that it was now exploring options such as fundraising, restructuring and the disposal of non-strategic business assets, in order to generate much needed short-term capital.
For FY2015, Outsourcery reported initial revenues of £8.1m, up 9% year over year, and monthly recurring revenues of £0.7m, up 14% from the same period last year.
Adjusted losses before interest, tax, depreciation, amortisation improved also, falling from £4.6m to £4m.
The cloud company said that it expects to release its full results by June 30.
“Whilst the full year results and current trading are in line with the Board's expectations, this view factors in that revenue growth from the Company's strategic partners has been impacted by further partner product launch delays outside of Outsourcery's control,” the firm said in a trading update.
“The company will require further funding for short term working capital purposes and is therefore investigating alternative solutions to its short term cash needs including fundraising, restructuring and the disposal of non-strategic business assets.”
Outsourcery said that it is in on-going talks with its lenders in order to put an appropriate solution into place.
Co-founded by Dragon’s Den star Piers Linney, Outsoucery also said that it is also bolstering its direct sales capability and revenue opportunities with partners, in order to concentrate on developing certain UC offerings.
Last year, Lawrence Jones, owner of hosting provider UKFast, invested £1m, taking a 10.5% stake in Outsoucery. Jones, whose firm is also based in Manchester, said that he made the investment to protect the city’s tech scene. He is now the third largest shareholder in Outsourcery behind co-chief executives Linney and Simon Newton.
The troubled firm also agreed a £4m loan with Vodafone last year. At the time, Linney said the loan would be combined with an extended £1m loan agreement with Etive to ‘pursue a pipeline of opportunities’.