LoopUp PLC (LOOP) - Loopy or Lupine?
Posted: March 14th, 2021, 2:29 pm
I bought a few shares in this company last week as I think it's an interesting proposition with growth potential.
https://loopup.com/en/
As I understand it, what differentiates their technology from Zoom and the like is the quality and security offered and as such their remote meeting offering is particularly popular with professional services companies such as lawyers.
At the current price the market cap is around £45m after a profit warning sent the shares tumbling from much higher.
https://www.investegate.co.uk/loopup-gr ... 00026950G/
The last year, unsurprisingly, has been excellent for them and they expect to show revenue of £50.2m and EBITDA of £15.3m along with significant cashflow. A word of caution on this, in the first half they made EBITDA of £12.2m and this dropped off a cliff in the second half to just over £3m
However, even if they merely tick along at this reduced rate of earnings then I feel that the business is worth the current market cap.
However, the first half demonstrates to me the sort of financial performance that is achievable with a relatively modest growth in turnover.
The big danger as I see it is that when the pandemic abates the demand for remote meetings becomes subdued but I am hoping that they can continue to grow the business in their chosen professional services segment and that the new business they have won proves to be sticky.
All in all it seems to me it is a business with some value whatever happens and the shares could potentially be worth much more if they can continue growing from this new rebased level.
Lester
https://loopup.com/en/
As I understand it, what differentiates their technology from Zoom and the like is the quality and security offered and as such their remote meeting offering is particularly popular with professional services companies such as lawyers.
At the current price the market cap is around £45m after a profit warning sent the shares tumbling from much higher.
https://www.investegate.co.uk/loopup-gr ... 00026950G/
The last year, unsurprisingly, has been excellent for them and they expect to show revenue of £50.2m and EBITDA of £15.3m along with significant cashflow. A word of caution on this, in the first half they made EBITDA of £12.2m and this dropped off a cliff in the second half to just over £3m
However, even if they merely tick along at this reduced rate of earnings then I feel that the business is worth the current market cap.
However, the first half demonstrates to me the sort of financial performance that is achievable with a relatively modest growth in turnover.
The big danger as I see it is that when the pandemic abates the demand for remote meetings becomes subdued but I am hoping that they can continue to grow the business in their chosen professional services segment and that the new business they have won proves to be sticky.
All in all it seems to me it is a business with some value whatever happens and the shares could potentially be worth much more if they can continue growing from this new rebased level.
Lester