RNS Number : 5272A
23 December 2014
cloudBuy plc (the "Company")
cloudBuy has successfully moved into new fast growing markets across the Asia Pacific region. This has been achieved through increased investment from a successful fundraising in September this year, at the same time as a transition into a new percentage of value business model which the Board expects to deliver significantly larger revenues and profits over the medium to longer term.
Australia is a mature market and cloudBuy has successfully entered this market with the Service First contract win announced this summer. The project is progressing well and expected to go live in March 2015. The annual value once live should be in the range of AUD$ 0.9m to $7.2m.
Hong Kong is a mature market in a rapidly growing region and cloudBuy expects to move into a market leading position when the new service is launched by the major financial institution in March 2015. This initial contact has a potential annual value of USD$42.5m which at 10% take-up is worth $4.25m at 30% take-up is worth $ 12.75m and at 60% take-up is worth $25.5m per year.
India is the fastest growing market in the world for both B2C and B2B ecommerce with significant investment from a wide range of companies including Flipkart, Snapdeal, Amazon and Alibaba. A number of these organisations have invested over USD$ 1 billion each in the Indian Market. cloudBuy has invested a small amount in the market, however the partnerships with SYNISE and Confederation of Indian Industry (CII) are market changing and cloudBuy should be the B2B market leader, and as announced on 5 Dec a 10% take up would be worth USD$20m per year.
As a result of these investments, along with work in Singapore and the Middle East to support its Visa Asia Pacific partnership, which has been extended by a further 5 years, cloudBuy has spent more than previously anticipated, and carried out less work in the UK under the previous revenue model.
The Company has over £ 1m of already delivered work that it expects to recognise revenue in 2015 as opposed to 2014 because the projects launch in March 2015 resulting in lower than previously anticipated revenues for 2014, since the revenue is expected to be recognised in 2015.
The outlook is excellent with cloudBuy now positioned as a market leader in a number of rapidly growing markets, with potential annual revenues on current contracts at a 10% take-up of USD$25m per year, $ 75m at 30% take-up and at 60% take-up $ 150m per year with over 70% margin. There has been a successful transition from a focus on the UK public sector to a global mix of public and private sector customers along with a strong presence in fast growing Asia Pacific markets.
For further information please contact:
Tel: 0118 963 7000
Ronald Duncan, Chairman
Westhouse Securities Limited
Tel: 020 7601 6100
Tom Griffiths/Richard Johnson
Tel 020 7653 9850
Robyn McConnachie, Tim Thompson
About cloudBuy PLC
cloudBuy, formerly @UK, is a world-leading transactional cloud platform.
cloudBuy has used the platform to build world-leading business to business (B2B) ecommerce and e-procurement applications, which address the full range of buying and selling activities in an easy-to-use web and mobile digital experience. The platform is also used to build complementary applications such as content management, secure email and big data analysis.
To date, the applications have processed over $500 billion of spend, and are being used by leading organisations around the world to deliver savings, increase profits and improve services.
The applications are unique in delivering correct pricing in the complex world of B2B procurement, whilst being simple enough for anyone to use - to the extent that people with disabilities can easily use a Care marketplace version to buy their own social and health care.
This information is provided by RNS
The company news service from the London Stock Exchange