Cloudbuy losses narrow as PHBChoices fuels growth

Cloudbuy reported a narrowed interim loss on Wednesday and an increase in revenue as growth was driven by its PHBChoices online healthcare marketplace.

The cloud-based ecommerce marketplace provider reported a loss before tax of £1.0m for the six months ended 30 June compared to a £1.3m loss in the same period last year, as revenue climbed 11% to £0.5m.

The AIM-listed company said it saw a "demonstrable" increase in interest from clinical commissioning groups as the requirement for personalisation in care has been driven by NHS England, which strengthened its commitment to personalisation in a long term-plan published in January.

Executive chairman Ronald Duncan said: "We have made progress in the first half of the year, with an increase in core revenue and a continuing focus on cash management and cost reduction. PHBChoices has contributed to the revenue increase and revenue from this area is growing. There is evidence that CCG's are under pressure to deliver more PHB's and increasingly they are reaching out to PHBChoices for a solution."

Cloudbuy said its HealthShare project in New South Wales, Australia, has successfully completed its three-year contract period and not been renewed so will contribute lower revenue in the second half and no revenue in 2020.

Even so, operating losses and cash outflows are expected to continue to reduce in the second half of the year as Cloudbuy sees increasing interest in its product suite from UK public sector bodies.

Cloudbuy shares were down 2.44% at 2.00p at 0925 BST.