LoopUp Group plc
Description
LoopUp is a streamlined and intuitive premium remote meetings solution built for business users. It has one-click screen sharing and integration with tools business people use every day, making it easy for LoopUp users to collaborate in real time. It recently acquired MeetingZone, a UK-based conferencing services provider. LoopUp is headquartered in London, with offices in San Francisco, New York, Boston, Hong Kong, Sydney and Barbados.
Our view
LoopUp has developed a product for remote business meetings which combines advanced technology with extreme simplicity and ease of use. The group has seen good traction with enterprise customers, and its process-centric and team-based sales approach lends itself to rapid scaling. The acquisition of MeetingZone added very significant scale and brought synergy opportunities. We see both recent issues which impacted revenues as, at least to a degree, transitory. Macro-economic activity will return in time, and the Pod growth “indigestion” should also work through in the medium term. Our long-term belief in the group’s product and LoopUp’s innovative and nimble approach remains unaltered.
Financial Summary
Year end: December (£m unless shown)
| 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|
| LoopUp Revenue | 34.2 | 42.5 | 50.2 | 29.7 | 34.2 |
| Adjusted EBITDA | 7.7 | 6.4 | 15.3 | 5.7 | 7.5 |
| Adjusted PBT | 4.1 | 0.5 | 8.5 | -1.6 | 0.1 |
| Adjusted EPS | 9.3 | 2.2 | 15.2 | -0.2 | 2.6 |
Profit & Loss
Year end: December (£m unless shown)
| 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|
| LoopUp Revenue | 34.2 | 42.5 | 50.2 | 29.7 | 34.2 |
| Adj EBITDA | 7.7 | 6.4 | 15.3 | 5.7 | 7.5 |
| Adj EBITA | 7.1 | 4.9 | 13.6 | 3.7 | 5.5 |
| Reported PBT | 0.4 | (2.8) | 5.7 | (4.4) | (2.7) |
| Fully adj PBT | 4.1 | 0.5 | 8.5 | (1.6) | 0.1 |
| NOPAT | 4.5 | 1.2 | 9.0 | (1.2) | 0.5 |
| Reported EPS | 2.3 | (3.3) | 12.1 | (4.8) | (2.0) |
| Fully adj EPS | 9.3 | 2.2 | 15.2 | (0.2) | 2.6 |
| Dividend per share | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Cash Flow & Balance Sheet
Year end: December (£m unless shown)
| 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|
| Operating cash flow | 4.4 | 6.7 | 17.8 | 0.4 | 7.6 |
| Free Cash flow | 4.4 | 4.4 | 17.7 | 0.7 | 7.9 |
| FCF per share | 8.3 | 7.4 | 29.3 | 1.1 | 13.1 |
| Acquisitions/intangibles added | (65.9) | (5.0) | (6.9) | (6.0) | (6.0) |
| Disposals | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Shares issued | 47.9 | 0.1 | 0.1 | 0.0 | 0.0 |
| Net cash flow | (13.5) | (0.9) | 10.8 | (5.3) | 1.9 |
| Overdrafts / borrowings | (16.2) | (14.5) | (12.8) | (11.1) | (9.4) |
| Cash & equivalents | 5.6 | 3.0 | 12.1 | 5.0 | 5.3 |
| Net (Debt)/Cash | (10.6) | (11.5) | (0.7) | (6.0) | (4.1) |
Nav & Returns
Year end: December (£m unless shown)
| 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|
| Net asset value | 59.9 | 58.1 | 66.0 | 59.5 | 56.4 |
| NAV/share | 109.0 | 105.2 | 119.5 | 107.6 | 102.1 |
| Net Tangible Asset Value | 2.2 | 6.0 | 5.0 | 3.8 | 2.6 |
| NTAV/share | 3.9 | 10.8 | 9.1 | 6.9 | 4.7 |
| Average equity | 35.2 | 59.0 | 62.1 | 64.5 | 62.4 |
| Post-tax ROE (%) | 11.6% | 0.9% | 13.7% | (2.6%) | 0.1% |
Metrics
Year end: December (£m unless shown)
| 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|
| Revenue growth | 95.9% | 24.3% | 18.1% | (40.9%) | 15.0% |
| Adj EBITDA growth | 121.1% | (16.2%) | 139.1% | (62.7%) | 31.3% |
| Adj EBITA growth | 124.1% | (30.5%) | 176.1% | (72.6%) | 47.4% |
| Adj PBT growth | 459.9% | (87.4%) | 1553.2% | (119.4%) | (104.1%) |
| Adj EPS growth | 109.8% | (76.8%) | 603.3% | (101.6%) | (1155.6%) |
| Dividend growth | N/A | N/A | N/A | N/A | N/A |
| Adj EBITA margins | 20.8% | 11.6% | 27.1% | 12.6% | 16.1% |