London-listed Toople (LSE:TOOP) told investors it remains ‘largely unaffected’ by COVID-19 and that it continues to perform well by signing new customers and servicing existing ones.
The UK-based telecom provider to SMEs said that it was benefitting from ‘substantial’ cost savings which it previously identified alongside the acquisition of DMS Holdings in February.
“Our business is functioning well and the key operational and financial milestones that we outlined at the time of the acquisition of DMSL have been achieved,” said CEO of Toople, Andy Hollingworth.
At the time of the acquisition, Toople said it believed the cash generative position of DMSL would accelerate its own positive cash generation and drive profitability for the company.
“We believe that the combined business will now accelerate to EBITDA profitability and cash self-sufficiency, reducing the historic reliance on the market to provide funds for working capital,” said Hollingworth of the acquisition in February 2020.
Shares in Toople were trading 6.25% higher at 0.0425p during Tuesday trading.
Toople noted this morning its reliance on suppliers such as BT Openreach at a time when technology infrastructure remains ‘a critical industry sector’ and connectivity a key UK government focus.
“To believe that we are fully insulated from the global crisis would be unwise,” acknowledged Hollingworth, “but the company is optimistic about its business case since it provides a critical service and many businesses are even more dependent on it now than previously.”
The group told investors that it remained “acutely aware” of the impact of the COVID-19 virus and that it had in place “robust” contingency plans in order to cope with any impact that restrictions on staff and customers may create.
The company said ‘it can only be expected’ that investment in and the progress of online solutions for businesses will continue.
On 31 January 2020, Toople unveiled final results which reported revenue growth of over 80% to £2.5m compared to £1.36m in the previous financial year.
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