CloudCoCo Group Plc (LSE:CLCO) reported on 30 June 2026 that first-half Revenue rose 30% to £4.4 million, with trading EBITDA improving to £89,000. Directors have since been dealing in the shares, with several notifications between July and September 2026, and the company has set out a plan to build revenue towards £10 million a year.

What the company does

CloudCoCo is a Sheffield-based Business selling technology products and services. Its main operation is MoreCoCo, an E-commerce arm, which accounted for 91.7% of revenue in the period. A smaller direct sales unit, Systems Assurance, supplies business customers, and a new business-to-business technology procurement initiative called Project Brightstar was launched. LSE:CLCO trades on thin margins typical of hardware resale.

Interim results

For the six months to 31 March 2026, revenue was £4.404 million against £3.383 million a year earlier. MoreCoCo contributed £4.040 million, up 34%, while Systems Assurance generated £364,000. Gross Profit rose to £312,000, a Margin of 7.1% versus 6.7%. Administrative expenses were £504,000. The operating loss narrowed to £192,000 from £261,000, and the loss before tax was £193,000.

The prior-year comparison is flattered by a £3.05 million gain on the sale of subsidiaries in October 2024, so the reported swing from profit to loss per share does not reflect trading. Cash fell from £635,000 at 30 September 2025 to £283,000, after an operating outflow caused largely by higher debtors and inventory. Net Assets were £322,000.

Funding and Capital changes

In April 2026 the company raised £275,000 gross by issuing 229,166,666 shares at 0.12 pence, with chairman Simon Duckworth and his wife subscribing £210,000, taking their holding to about 21.16%. Shares in issue rose to 935,382,352. Shareholders approved a capital reorganisation on 27 March, splitting each ordinary share into a 0.01 pence ordinary share and a deferred share, along with a new option scheme that vests only on EBITDA milestones. Share Options were granted on 6 July 2026.

Targets and outlook

The board's short-term goal is £10 million of annual revenue at a 7% gross margin, with a longer-term ambition of £15 million. Project Brightstar had a qualified pipeline above £2.5 million across 27 opportunities as of June and recorded its first tangible win that month. Management cited tailwinds from the end of Windows 10 support and AI-capable devices. LSE:CLCO aims to reach sustainable positive EBITDA after absorbing group costs of £201,000 in the period. Directors reported no material uncertainty over going concern.

Sector and index context

IT reselling is a crowded, low-margin field where scale and Working Capital matter. CloudCoCo is a micro-cap in the FTSE AIM All Share Index, and its share price, measured in fractions of a penny, can move materially on small trades.

Revenue is seasonal: the second half of the previous financial year produced £4.608 million, more than the latest half, and the chairman attributed the difference to quieter trading from December to February. Impairment testing showed headroom of £718,000 for Systems Assurance and £2.283 million for More Computers on the base case, using a post-tax discount rate of 13.5%.

Key risks

Thin gross margins leave little buffer, and growth consumes working capital. The cash balance is small, and further fundraisings may be needed. Impairment headroom on acquired Goodwill is sensitive to discount rate and growth assumptions, and LSE:CLCO relies on large suppliers and online marketplaces.

What to watch next

Investors will look for the full-year trading statement, evidence that Project Brightstar converts its pipeline into contracts, progress towards positive EBITDA, and the cash position as seasonal trading builds into the second half. Further director share purchases may also be reported.