Final Results for Year Ended 31st December 2018

Mar 20, 2019

cloudBuy plc

("cloudBuy" or the "Company")

Final Results for the year ended 31 December 2018, Funding Update, Share Incentives, Directorate Change and AGM date

1. Final results for the year ended 31 December 2018

  • Revenue for the year was £1,108,547, a reduction of 26% on 2017. This reduction was due to a number of existing customers not renewing in 2017 and 2018. Project revenue continues to be earned from contracts won in 2016 but at a lower level than in 2017 as the projects are now live and operational. Revenue from Company Formations reduced by 15% in the year.
  • Operating loss excluding share-based payments was £1,645,323, a reduction of 25% on 2017, as a result of cost reductions which have offset the reduction in revenue.
  • For 2019, the business will continue to focus on generating revenue from existing customers with a particular focus on the PHBChoices UK Care Marketplace.
  • Cash at 31 December 2018 was £790,989, a reduction of £1,668,923 in the year. No funding was raised in the year.

2. Funding Update

In the Trading Update issued on 8 February 2019, we stated that the Company is engaged in 2 opportunities which if won would enable the Company to reach cash flow break even without further funding. One of these opportunities is still viewed as having a good likelihood of success, the other is now unlikely. As a consequence, the company has agreed to drawdown £500,000 from the existing facility with Roberto Sella, to be received in March 2019, with a potential further drawdown of £250,000 if the current likely opportunity does not materialise. The Board believe that this should provide adequate financing to enable the Company to achieve cash flow break even. 

3. Issue of Share Incentives

i. Share Options

  • An issue of share options has been approved by the Remuneration Committee and with the agreement of Roberto Sella. These are designed to act as a retention incentive. The details are as follows.
  • David Gibbon will be awarded up to 3,406,927 options, representing approximately 1% of the diluted share capital, subject to the maximum exercise value being no more than £131,542, with an exercise price set at the closing price on 20 March 2019.
  • Certain key technical staff will receive a total of 1,100,000 options, with an exercise price set at the closing price on 20 March 2019.
  • Vesting will be 33.3% after 1 year and then monthly in equal amounts for the following 24 months.

ii. Incentive Shares

  • £1,000 of cloudBuy shares will be awarded to all UK employees under the Group’s HMRC approved scheme issued at the closing price on 20 March 2019.
  • Vesting will be after 3 years.
  • The executive directors will decline this award.

4. Directorate Change

Patrick Broughton, Senior Non-Executive Director has given notice that, due to personal commitments, he intends to resign from the Board after the publication of the Annual Report and Accounts. David Chellingsworth will take up the position as Senior Non-Executive Director. A suitable replacement is currently being sought.

5. Publication of Report and Accounts and AGM notice

The report and accounts for the year ended 31 December 2018 and notice of Annual General Meeting ("AGM") will be distributed to shareholders today and will also be available on the website: investor.cloudbuy.com.

6. AGM Date

The Company's AGM will be held on 16 April 2019 at 11.00 am at its registered office, 5 Jupiter House, Calleva Park, Aldermaston, Berkshire RG7 8NN.

For further information, please contact:

cloudBuy plc David Gibbon, CFO Tel: 0118 963 7000

Arden Partners plc – NOMAD and broker Tel: 020 7614 5900

Paul Shackleton/ Daniel Gee-Summons – Corporate Finance Simon Johnson – Corporate Broking

About cloudBuy plc

cloudBuy, (AIM: CBUY), provides cloud solutions for buyers and sellers – and brings them together to trade securely and ethically via an increasing number of public eMarketplaces and private purchasing portals around the world, powered by cloudBuy technology. cloudBuy solutions for buyers help B2B purchasers understand and control their spend, to reduce costs and increase value. Our cloudSell solutions enable sellers of all sizes, from startups to corporates, reach new customers and grow their business.

cloudBuy’s technology platform powers web sites, public marketplaces and private purchasing portals that enable all types of online interactions and relationships including, citizen and business to government; consumer to business; and business to business. For more information, visit: www.cloudbuy.com. 

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