Cloudbuy narrows losses despite revenue drop

22nd Aug 2018 08:12

(Sharecast News) - AIM-listed cloud services group Cloudbuy trimmed its losses over the first half of its trading year, but still saw revenues drop on the back of a reduction in growth from legacy contracts.Cloudbuy reported a pre-tax loss of £1.08m for the six months leading to 30 June, a 27% improvement on the £1.48m loss posted a year earlier.However, revenues fell 20% to £650,000 as a result of a reduction in revenue from legacy contracts that left each of Cloudbuy's segments reporting lower growth.Company formation services revenues fell by 21%, web and e-commerce services fell 19.6% and coding international fell 35.4%.Cloudbuy expects to see a further reduction in losses during the second half of the year.Ronald Duncan, Cloudbuy's executive chairman, said, "We continued to reduce our losses and cash burn despite a reduction in revenue from legacy contracts. PHBChoices remains the focus for growth, and we are making progress."As of 1050 BST, Cloudbuy shares had dipped 1.64% to 3p.