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LoopUp spins higher highlights ‘material increase in volumes’ as coronavirus drives demand for virtual meeting tech

The remote meeting specialist said it was receiving “amplified” approaches from companies struggling to adopt video conferencing solutions as staff increasingly worked from home during the outbreak

LoopUp Group PLC - LoopUp highlights ‘material increase in volumes’ as coronavirus drives demand for virtual meeting tech

LoopUp Group PLC (LON:LOOP) has highlighted a “material increase in volumes” for its virtual meeting products during March as the coronavirus outbreak drives demand for remote working technology.

In a post-period update accompanying its full year results, the AIM-listed company said it was “too early to predict how usage levels will develop in the short term” but added that it was receiving “amplified” approaches from companies struggling to adopt video conferencing solutions.

READ: LoopUp ‘confident’ of medium-term growth as macro headwinds stabilise

As a result, the company said it was confident of achieving “strong growth” in its core professional services market and meeting market expectations for 2020.

For the year ended 31 December 2019, the company reported adjusted earnings (EBITDA) of £6.4mln, 16% lower than the prior year, while revenues increased 24% to £42.5mln.

Active users during the year increased 24% in the year to 33,356, alongside a 19% rise in meeting minutes to 237mln.

“It has been an important year in the evolution of our business. The progression of key business metrics has led us to sharpen our focus on serving and further strengthening our position within the Professional Services market”, said LoopUp’s co-chief executive’s Steve Flavell and Michael Hughes.

"Despite short-term challenges to the business in 2019, the landscape has changed dramatically with the recent migration towards large-scale working from home. We are working intently to support our customers and helping to keep them connected during this uncharted period, as well as ensuring that our platform capacity remains comfortably ahead of very fluid demand”, they added.

Shares in the firm surged 16.4% to 49p in early trading on Thursday.

--Adds share price--

Quick facts: LoopUp Group PLC

Price: 62.49 GBX

AIM:LOOP
Market: AIM
Market Cap: £34.52 m
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