Toople PLC New contracts signed (9276D)
01 July 2019 - 4:00PM
UK Regulatory
TIDMTOOP
RNS Number : 9276D
Toople PLC
01 July 2019
Strictly embargoed until: 07.00, 1 July 2019
Toople PLC
("Toople" or the "Company")
Trading Update
New contracts signed with revenue in excess of GBP500,000
Strong year on year growth in new orders
Toople Plc (LSE: TOOP), a provider of bespoke telecom services
to UK SMEs, is pleased to provide the following update on trading.
Since the Company settled its outstanding debt after its recent
private placing, it has seen material growth across all operational
metrics
Growth in customer acquisition has continued to accelerate
rapidly since the half year end and the Board is pleased to
announce that Toople received over 900 new orders in April 2019 and
over 1,000 orders in May. Order numbers in May 2019 were 3.5 times
those achieved in May 2018, representing 250% growth year on year.
This growth trajectory continued into June with over 1,100 orders
from over 800 new customers received. Toople is now seeing over 800
new customers placing orders every month.
The contract value of new customers signed in May 2019 amounts
to revenue in excess of GBP500,000 for Toople over a 24 month
period. The Board also expects to see continued growth in total
contract value for June driven by order volume growth as well as
material growth in superfast fibre orders which deliver higher
revenue and gross profit.
As previously announced the Company has invested in creating an
in-house sales and marketing channel and this, coupled with its
digital marketing strategy, is driving the large number of new
customer enquiries, many of which are received after 8 p.m. on
weekdays and over weekends.
To help maximise these new customer enquiries, Toople has
recently established a sales centre in Durban, South Africa. SME
business owners typically respond best to the Company's digital
marketing activities when they have finished work for the day and
they are able to communicate with live sales agents on their
desktops, mobiles or tablets. The Durban operation will
significantly extend operating hours so that Toople can communicate
as soon as enquiries are received. The Board believes the
investment in a second sales centre will drive further lead
conversion, which will result in a lower overall cost per
customer.
Commenting, Andy Hollingworth, CEO at Toople said:
"We are delighted to report that our sector of the UK SME
telecom services market continues to grow rapidly. Our continued
success has resulted in us becoming a major disruptor and provides
further proof of our sales strategy. We continue to generate more
leads than ever before and with the establishment of a presence in
Durban, extending our sales hours into the evenings and weekends,
we are now able to convert more of those leads and at a faster
rate. These initiatives will deliver a lower overall cost per
customer acquisition as a result of the maturing focus of our own
digital marketing campaigns without any increase in our marketing
capex.
"When you combine this operational success with the recent
repayment of our debt, and consider the recent M&A activity at
attractive valuations in our sector, we believe that the business
is currently in a very good place."
This announcement contains inside information for the purposes
of Article 7 of the Regulation (EU) No 596/2014 on market
abuse.
-ends-
For further information please visit www.toople.com or
contact:
Toople PLC Tel: 0800 0499 499
Andy Hollingworth, Chief Executive
Officer /
Kevin Lawrence, Chief Financial
Officer
Cairn Financial Advisers LLP Tel: 020 7213 0880
David Coffman / Richard Nash
Novum Securities Limited Tel: 020 7399 9400
Colin Rowbury
Turner Pope Investments Limited Tel: 020 3621 4120
Andy Thacker
Belvedere Communications Tel: 020 3687 2754
John West / Llew Angus
About Toople PLC
Toople Plc, a company incorporated in the UK provides a range of
telecoms services primarily targeted at the UK SME market. Services
offered by the Group include business broadband, fibre, EFM and
Ethernet data services, business mobile phones, cloud PBX and SIP
Trunking and Traditional Services (calls and lines) all of which
are delivered and managed through Merlin, the Group's proprietary
software platform.
The Group is differentiated by its focus on creating small
business connectivity solutions, with robust and reliable packages
that will enhance our customer's companies. In addition, our vision
is based on trust and transparency, with no hidden fees within our
pricing policy providing customers with a clear understanding of
cost.
Toople Plc has a strong and highly experienced Board and
management team who are focused on growing the business both
organically and by identifying earnings enhancing strategic
acquisition opportunities.
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END
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