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LoopUp dials up strong first half as MeetingZone acquisition delivers

LoopUp's expansion into the Australian market and smooth integration of MeetingZone boosted its first-half performance
LoopUp dials up strong first half as MeetingZone acquisition delivers
LoopUp snapped up MeetingZone for £61.4mln in June

LoopUp Group PLC (LON:LOOP) reported strong growth in half-year profit and said its recently acquired MeetingZone business would deliver greater cost savings than expected.

The AIM-listed company on Wednesday posted a 65% rise in its adjusted underlying earnings (EBITDA) to £2.7mln on revenue 39% higher at £12mln.

READ: LoopUp enjoys stellar first half as new acquisition dials in

The company said that following the acquisition of MeetingZone, it has successfully implemented greater cost savings faster than previously expected. LoopUp said it expects to reinvest some of those cost savings into additional measures, including the expansion of pods and marketing.

During the period, LoopUp entered the Australian market with two new business 'Pods', which it said had already won more than 30 new customers.

LoopUp said it continues to see strong demand for its products from its target market of mid-to-large enterprises and professional services firms. The seven pods in LoopUp's existing UK and US markets continue to operate well in terms of recurring gross margin and return on investment, it said.

"It's been an action-packed and tremendously progressive first six months of the year - a transformational acquisition in terms of LoopUp's business scale, successful expansion into the Australian market, and continuation of our strong organic growth,” LoopUp’s co-CEO’s Steve Flavell and Michael Hughes said in a statement.

“Looking ahead, we remain confident in our ability to meet market expectations and deliver strong future growth, driven by our highly differentiated product in the £5-billion-market for outsourced remote meetings services,” they added.

LoopUp said it continues to see strong demand for its products from its target market of mid-to-large enterprises and professional services firms. The seven pods in LoopUp's existing UK and US markets continue to operate well in terms of recurring gross margin and return on investment, it said.

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