CloudCall, the Leicester cloud-based software business, has returned to growth following a COVID-impacted 2020, according to a trading update for the year to 31 December 2021.
The business said that total reported revenues rose to £13.6m from £11.8m in 2020, while customer numbers are up 12% to 1,658 (FY 2020: 1,480).
The update follows news in December that CloudCall’s directors had unanimously recommended an all cash offer for the business to shareholders, valuing the company at £39.9 million.
The firm had reached an agreement with Xplorer Capital Growth I, LLC (Xplorer Capital), a newly formed company owned by funds managed and advised by Xplorer Capital Management LLC.
Simon Cleaver, CEO, said: “2021 marked a return to growth following a COVID-impacted 2020. I was delighted to see strong performances from new business sales, existing business upsell, and customer retention combine to drive our annualised revenue growth back over 25% as we enter 2022.
“Whilst our team have delivered well in 2021 and I’m immensely proud of what they’ve achieved, I’m also conscious that we are operating in a marketplace where many of our key competitors are materially larger and better capitalised than we are.
“In the coming few months, if we remain as a listed company, we will need to raise significant further capital to fund the group through to our targeted monthly EBITDA breakeven in 2023.
“I remain passionate about CloudCall and our team, but, given the conflicting sentiment between shareholders that prefer growth vs those that prefer us to push for break-even, I believe a future capital raise from the public markets may be challenging. In addition to this, the quantum of any fundraise will not go far to redress this imbalance between us and certain of our competition.
“Against this background and after careful consideration, as noted in the announcement of the offer by Xplorer Capital, the CloudCall Board have determined that the offer by Xplorer Capital is in the best interests of CloudCall shareholders and staff.”