Toople Plc (LON: TOOP), a provider of bespoke telecom services to UK SMEs, has today provided the following update on trading.
The Company, which is debt free, has enjoyed strong growth in July and August, traditionally seasonally affected, adding 1,300 and 1,000 new customer orders respectively in these months. The Board expects these new customer orders to deliver additional revenues over and above the £500,000 incremental revenues arising from the contracts signed in May 2019.
In addition to the growth in customer orders, Toople is also pleased to announce that the new sales facility established in Durban, South Africa went live in July and is proving to be a major success for the Company. This facility considerably enhances Toople’s sales capability, extending working hours into the evenings after 8 p.m. and at the weekends, which traditionally are peak times for SME enquiries. Conversion rates to date are good and comparable to those achieved by the UK team. The impact is an overall lower cost of acquisition per customer and revenue generating unit, which will deliver margin improvements over the medium term.
Commenting, Andy Hollingworth, CEO at Toople said:
“The order numbers achieved in July and August were ahead of our expectations. Growth is being driven by a number of factors, not least a noticeable switch by UK SMEs to superfast fibre broadband, ahead of the eventual closure of existing legacy copper infrastructure in 2025. As businesses are forced to review their existing telecoms services, many are seeking new solutions which provide enhanced quality at an affordable fixed price. SMEs are increasingly dissatisfied with a lack of price transparency, poor service offerings and poor customer service from the traditional tier one providers. Toople is taking advantage of these failings by its bigger competitors and is fast becoming a major disruptor in our segment of the market. The Company continues to make great progress, as evidenced by sales figures over the normally quieter summer period.”