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Cost-cutting measures buff up cloudBuy's full-year performance

Cost-cutting measures have led to a slightly better than expected performance for 2016

Online buying
The company has been encouraged by progress on the PHB Choices emarketplace

Online business-to-business marketplace creator cloudBuy PLC (LON:CBUY) has forecast that the bottom line for 2016 will be a bit healthier than previously expected.

The company said revenues for the full year will be in line with expectations but, thanks to cost-cutting measures, the operating loss (excluding share-based payments) will be marginally lower than current market expectations.

Further redundancies have been effected and the directors of the company have agreed to reductions in salaries totalling an annualised £250,000, which came into effect in October 2016. These measures will result in lower costs in 2017 compared to 2016, cloudBuy said.

The company said in an end-of-year trading statement that it had made satisfactory progress with the four new customers brought on board in the second half of the year, all of which are now generating revenue.

“More significantly, the PHB Choices e-marketplace, through NHS SBS, continues to progress with the first transactions from PHB budget holders being completed through the market place. Whilst these have been in small volumes to date, this is nevertheless a significant milestone,” the company told investors.

Shares were up 11% at 3.75p in the first half-hour of trading.

Quick facts: Cloudbuy PLC

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AIM:CBUY
Market: AIM
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