CloudBuy flags better-than-expected year after cost cutting

21st Dec 2016 13:47

(ShareCast News) - Cloud-based e-commerce marketplaces and B2B provider cloudBuy updated the market on trading for the year to 31 December on Wednesday.The AIM-traded company said it expects revenues for the year to be in line with market expectations, whilst the operating loss excluding share based payments is expected to be marginally better than market expectations as a result of cost cutting measures implemented during the course of the year.Operationally, the company said it has made satisfactory progress with four new customer wins announced, all generating revenue in the second half of the year.The PHB Choices emarketplace through NHS SBS was continuing to progress with the first transactions from PHB budget holders being completed through the marketplace, cloudBuy's board said.While those had been in small volumes to date, it was nevertheless a significant milestone.The company said it continued to implement cost reduction measures in the second half of the yearFurther redundancies occurred, and the directors of the company agreed to reductions in salaries totalling an annualised £0.25m which came into effect in October.The board said the measures will result in lower costs in 2017 compared to 2016."We are pleased that we expect results to be in line with market expectations," said executive chairman Ronald Duncan."Whilst this has been a difficult year for the company we have continued to make operational progress, the benefits of which we would expect to see next year and beyond, and we have reduced costs where appropriate."