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Outsourcery, the pure play cloud platform service provider, joined AIM in May with the company raising £10 million. Half-year results today showed revenue up 23.5% to £2.1 million, with recurring revenue from cloud services up to £1.5 million. The annual cloud run rate is now over £5 million. At the EBITDA level, Outsourcery showed a loss of £3.2m, down from the level of the previous year. The share price now stands at 120p, unchanged on the results.
The company's business model is to act as a cloud broker, concentrating on the provision of Microsoft cloud-based services and the deployment of its proprietary O-cloud platform. Further high capex is avoided by a growing raft of partnerships which supply data centres and network.
The results highlighted the opportunity in the public sector. This reflects the positive comments towards cloud in TechMarketView’s Public Sector Market Trends and Forecasts report, given the peak in large outsourcing contracts ending between 2014 and 2015. An agreement with Ingram Micro generates another route to market for Outsourcery’s hosted MS Lync.
Microsoft is central to Outsourcery’s plans, with a new agreement to accelerate the introduction of higher security (IL3 compliant) cloud services and for Outsourcery to own and manage a platform targeting the UK public sector. As Microsoft looks for growth from the Cloud (see our UKHotView), Outsourcery appears to be in a strong position.
As cloud services gain in acceptance and as established companies come to terms with the new business model, the role of cloud broker is an important one, where growth, and a margin, can be secured. Outsourcery’s statement on outlook made no mention of profits, probably wise at this stage, but revenue growth, the connections with Microsoft et al and the group’s momentum justify continued interest.
