Shares in LoopUp (LOOP) were marked up to 435p on a positive first-half trading update to June, and news of improved synergy expectations from its £61.4m acquisition of MeetingZone. While management had previously expected cost savings of approximately £500,000 in 2018 and £2.8m in 2019 from the deal, it now expects £1.3m and £3.2m respectively. Those cost savings come with an exceptional cost of £1m.
Group sales climbed more than a third to £12m, including around one month’s trading from the new business. Meanwhile, on an organic, constant-currency basis, LoopUp’s top line grew 22 per cent to £10.1m. True, this rate was lower than the average of 31 per cent over the three prior first-half reporting periods. But this stemmed from the fact that LoopUp has been expanding into Australia, focusing on building its pipeline here. Australian new business acquisition ‘pods’ have closed more than 20 accounts, which will be rolled-out in the second-half.
