CloudBuy losses narrow despite declining revenues

8th Feb 2019 09:42

(Sharecast News) - B2B buyer and supplier solutions provider CloudBuy saw revenues fall in its last trading year as legacy contracts dropped off.Cloudbuy expects to turn in a 25% decline in revenues for the year ended 31 December, however, the group actually expects its operating loss to have narrowed by 25% as a result of cost savings efforts undertaken throughout the period.The AIM-listed outfit, which continues to work with the NHS on its PHBChoices project, assured investors the move to profit and cash flow break-even remained its "key priority".Chief executive Ronald Duncan said the reduction in revenues was a "disappointment" but noted the drop was a result of significant contracts won in 2016 and a number of legacy contracts ending and not being replaced by new opportunities.Looking forward, Duncan said: "The business strategy remains to focus on revenue from existing customers in the UK, Canada, Singapore and Australia with significant growth expected from PHBChoices in 2019.""The first 5 weeks of 2019 have shown good progress from PHBChoices although from a lower base than we had expected."As of 0940 GMT, Cloudbuy shares had tanked 32.29% to 2.37p.