Toople has announced its wholly owned subsidiary, DMS Holdings, has signed major contracts with a global humanitarian organisation and a global underwriting business.
Both new clients have signed up for cloud telephony platforms on three-year contracts, with the underwriting business taking an additional ethernet circuit. Customer deployment is already complete for each contract win and as per the business model, the contracts are already generating revenues for the Company to be recognised in the current financial period. TOOPLE acquired DMS Holdings earlier this year for a total consideration of approximately £1.56m on prior year revenue for the 12 months to April 2019 of £3.1m and profit before tax of £0.331m.
The Company has also reassured the market that it has in place a contingency plan to cope with any travel restrictions on its staff and customers due to COVID-19. By design, the TOOPLE platform enables every member of staff to work remotely with full access to the systems on desktop, tablet and mobile.
Furthermore, TOOPLE believes the recent budget report should provide a regulatory boost for TOOPLE products and services with the new Chancellor of the Exchequer, Rishi Sunak, announcing that £5bn would go towards rolling out gigabit broadband in the most difficult-to-reach 20 per cent of the country, which is a key target market segment for TOOPLE.
Today’s news will clearly be welcomed by the market with the Company traded from 0.27p to 0.06p over the past 12 months.
Andy Hollingworth, CEO of Toople, commented: "The integration of the two businesses is progressing well and ahead of plan and we are already seeing the commercial benefits of the acquisition. The impact of the COVID-19 virus cannot be underestimated by any business, but the Board is confident that our core offering of a cloud telephony platform will ensure business continuity and can act as a solution for other businesses who need speedy solutions to a remote working environment.
"Furthermore in his first Budget last week, new Chancellor of the Exchequer, Rishi Sunak, said that £5bn would go towards rolling out gigabit broadband in the most difficult-to-reach 20 per cent of the country. We welcome this move and consider it to be a boost to Toople, and to consumers and businesses who will gain access to higher speed and larger bandwidth connectivity over the next five years. Toople is well placed to take advantage of these market drivers."