CloudBuy's interim loss widens as shares are suspended

E-commerce marketplace provider CloudBuy posted a wider interim loss and warned it might miss its full year expectations.

In the six months to the end of June, the London-listed company, which saw its shares suspended after its nominated broker and adviser resigned, saw its pre-tax loss double to £3.2m, while revenue declined 40% year-on-year to £0.9m.

The company attributed the slump in revenue to a transition from flat fee to a transactional model, adding that revenue increased 32% from the second half of 2014, proving the new model can deliver the expected results.

CloudBuy indicated that it has a pipeline of “major opportunities” with a potential value of £51m between now and 2018, although it warned some opportunities have been delayed and will offer only a small contribution this year.

As a result, CloudBuy warned it might fall short of its annual goals.

"Our quick and effective entry into North America, China and Saudi shows that we are able to execute projects globally and provides confidence in our pipeline,” said group chairman Ronald Duncan.

“The company has a strong and professional team who are quickly acquiring and converting the growing numbers of commercial opportunities that will generate rapid and sustained long-term revenue growth.”

CloudBuy shares closed down 0.27% to 18.70p on Thursday.