Tech company Cloudbuy said Friday annual revenues fell by a quarter as older legacy contracts won in 2016 were not renewed and company formation activities had experienced week demand.
Revenue fell 25% year-on-year as the non-renewal of older legacy contracts and a continual decline in company formation revenue weighed.
But the company said its target to move to profit and cashflow breakeven remained a key profiting and gave upbeat assessment of opportunities in the pipeline.
The company was engaged in two opportunities, which together would provide adequate financing to enable the company to achieve cash flow break even, it said.
Should these opportunities not materialise, however, the company would seek new funding including entering into discussions with Mr Roberto Sella to draw down a portion of the remaining £1.7m of the debt facility entered into on 8 December 2017.
Year-end cash was expected to be £769,000 following a R&D tax credit of £124,000 received post year end in January 2019, which would ordinarily have been received in 2018, the company said.
'The reduction in revenue in 2018 is a disappointment and results from lower revenue from contracts won in 2016 and a number of legacy contracts ending and not being replaced by new opportunities,' said Ronald Duncan Executive Chairman and CIO.
'The business strategy remains to focus on revenue from existing customers in the UK, Canada, Singapore and Australia with significant growth expected from PHBChoices in 2019. The first 5 weeks of 2019 have shown good progress from PHBChoices although from a lower base than we had expected.'