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LoopUp flying as it identifies bigger post-merger cost savings than originally envisaged

"MeetingZone is now bedded in organisationally, with greater cost savings delivered than envisaged at the time of acquisition and the transition to the LoopUp platform progressing positively," the company said
LoopUp remote meeting software
The company has "further improved end user engagement with the LoopUp product"

 Shares in LoopUp Group PLC (LON:LOOP) were performing loop-the-loops in early deals after the company's results statement for 2018.

The shares were up 6.8% in early deals despite the company tipping the wink to the market in February that the results would be “comfortably ahead” of market expectations.

READ: LoopUp's 2018 profits were "comfortably ahead" of market expectations

The remote meetings technology specialist said its core business metrics in the current year all remain strong.

The company saw revenue almost double in 2018 and adjusted underlying earnings (EBITDA) shoot up by 121%.

Revenue rose to £34.2mln from £17.5mln in 2017, helped by the acquisition of MeetingZone.

Management said LoopUp and MeetingZone are now fully integrated into a unified organisational structure for new business acquisition, customer success and operations. This reorganisation has resulted in annualised cost synergies in excess of the £3 million announced at the time of the acquisition of MeetingZone.

Adjusted EBITDA climbed to £7.7mln from £3.5mln the previous year but profit before tax declined to £385,000 from £729,000 in 2017, largely as a result of £467,000 in finance costs.

The discrepancy between EBITDA and profit before tax was largely down to the “A” - amortisation – in EBITDA; the group amortised £2.56mln of development costs and a further £1.29mln of acquired intangibles, while it also swallowed £1.22mln of reorganisation costs.

“We continue to see strong demand for the LoopUp product from our target market of mid-large enterprises and professional services firms. We've started 2019 with healthy pipelines and we're confident in our ability to deliver continued strong growth,” said Steve Flavell and Michael Hughes, who share chief executive officer duties at LoopUp Group.

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