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@UK has released an upbeat trading update for the six months to 30th June 2013, which has pushed its share price up 16% in early trading. In contrast to its full year results (see @UK slumps on 6% revenue decline), the good has outweighed the bad, resulting in “strong growth” in overall revenues and a reduction in operating losses. The company announced another decline (albeit small) in its Company Formations division but this was outweighed by a growth in revenues of over 100% from its eCommerce Marketplace and Spend Analysis business.
The @UK eCommerce Marketplace is in collaboration with Visa. The operations of the business will shortly be launched with new branding under the terms cloudBuy and cloudSell. In the UK, @UK points to a promising UK Government pipeline “with multiple engagements at the ministerial level and the highest levels of the civil service”. But the management view the international arm of the business as having the most significant growth potential. In its last financial year, the eCommerce marketplace business generated revenues of £1.18m (total revenues were £2.2m); but at @UK’s AGM last month, Chairman Ronald Duncan stated that there was potential to generate annual turnover in excess of £50m within 3-5 years with c80% derived internationally.
