CloudBuy losses narrow despite declining revenues

B2B buyer and supplier solutions provider CloudBuy saw revenues fall in its last trading year as legacy contracts dropped off.

Cloudbuy expects to turn in a 25% decline in revenues for the year ended 31 December, however, the group actually expects its operating loss to have narrowed by 25% as a result of cost savings efforts undertaken throughout the period.

The AIM-listed outfit, which continues to work with the NHS on its PHBChoices project, assured investors the move to profit and cash flow break-even remained its "key priority".

Chief executive Ronald Duncan said the reduction in revenues was a "disappointment" but noted the drop was a result of significant contracts won in 2016 and a number of legacy contracts ending and not being replaced by new opportunities.

Looking forward, Duncan said: "The business strategy remains to focus on revenue from existing customers in the UK, Canada, Singapore and Australia with significant growth expected from PHBChoices in 2019."

"The first 5 weeks of 2019 have shown good progress from PHBChoices although from a lower base than we had expected."

As of 0940 GMT, Cloudbuy shares had tanked 32.29% to 2.37p.